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Egypt Confirms Multibillion-Dollar UAE Investment To Develop Coastal Town

The plan has drawn some mixed reviews so far. Egypt Confirms Multibillion-Dollar UAE Investment To Develop Coastal Town Shutterstock

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The African nation of Egypt is home to some of Earth’s richest historical landmarks and artifacts, but its present situation is increasingly uncertain. Its economy is in turmoil among skyrocketing inflation and a foreign currency shortfall that has pushed more than half of the population either to or below the poverty line.

A radical solution

In an attempt to deal with the nation’s pressing problems, Prime Minister Mostafa Madbouly confirmed last week that he had entered into an agreement with the United Arab Emirates to move forward with an urban development project in Ras el-Hekma, a town on Egypt’s northwestern coast.

The terms of the deal will see a total investment of about $35 billion over the next two months, which supporters say will help prop up the sagging economy but detractors believe essentially amounts to selling off the land to the UAE.

Madbouly attempted to assuage the concerns of naysayers, noting that Egypt has a 35% stake and will receive profits in accordance with that share. But that hasn’t stopped critics from insisting that local investors should have been given an opportunity to develop the town, thus keeping all of the economic benefits for the struggling nation.

Terms of the deal

Controversial though it may be, the project is nevertheless ambitious. According to the prime minister, the scope will cover roughly 6 and a half square miles and will give the beach town a major facelift.

Some of the planned improvements include:

  • New residential districts and tourist areas
  • A central financial and business district
  • Schools and universities
  • A marina for rich visitors to dock their yachts
  • Construction of a new international airport

Of course, those currently living in the area will be displaced, but Madbouly said they would be compensated and receive aid in their relocation.

Chris Agee
Chris Agee February 26th, 2024
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