Ras El Hikma is one of several locations earmarked by the government’s comprehensive urban development plan for the North Coast
In the first official response to ongoing speculations, head of the General Authority for Investment and Free Zones (GAFI), Hossam Heiba confirmed that an Emirati consortium has been selected to begin work on a $22 billion project in the North Coast’s Ras El Hikma.
Speaking to CNBC Arabia, Heiba’s confirmation comes after a week-long back and forth of media reports and denials from government officials about the project and land sale.
Ras El Hikma is one of several locations earmarked by the government’s comprehensive urban development plan for the North Coast, in line with its ambitious 2052 vision, according to an official source that was cited by media outlets last week.
Heiba did not disclose what type of project was being developed, however, media outlets have cited sources saying that the deal will establish an international tourist city project similar to New Alamein City.
"We received offers from several international investment companies, and an Emirati developer was chosen to implement the project," explained Heiba, adding that investments total $22 billion but may go higher. He also noted that the investments will not be pumped into the project simultaneously, suggesting payment will come in tranches/phases.
According to the GAFI head, the consortium will be responsible for financing, developing and managing the project.
“We have finished the negotiations and are now preparing to sign contracts,” Heiba explained but did not disclose any of the companies involved.
The $22 billion will bring in much-needed fresh hard currency to the country as it aims to close the gap between official and black market USD rates caused by a foreign currency shortage.
Earlier this week, black market prices deep dived after the International Monetary Fund announced that they were close to finalizing a new deal for an extended loan to Egypt, and the EU revealing that it has officially put aside additional financial assistance for Egypt.
The EGP rallied against the USD to around EGP 53 on Sunday, building up strength after falling into a peak of 72 against the USD last week.
On Thursday, as of 12 PM, the black market rate stood at around EGP 62-62 against the USD.
