Egypt receives second payment of $14bn from UAE

Egypt received $14bn from the UAE on Wednesday as a second payment for the development of Ras al-Hikma peninsula, a cabinet statement said.

The deal with Abu Dhabi sovereign fund ADQ to develop the peninsula 200 km west of Alexandria includes a total of $35bn in investments and is one of the biggest deals of its kind.

Egypt has also started working with the UAE to waive an Emirati deposit of $6bn in the Egyptian central bank and convert its value to the equivalent in Egyptian pounds (EGP), Egyptian prime minister Mostafa Madbouly added in the statement.

Egypt received $5bn as a first payment in the property development deal in February and another $5bn tranche on March 1.

The cabinet said in February that the UAE and the Egyptian central bank were working to convert $11bn worth of UAE deposits into Egyptian pounds.

Egypt has been struggling with a prolonged shortage of foreign currency and rapid inflation and the cash injection from the first two tranches helped alleviate currency pressures.

Egypt to develop Ras al-Hikma

Earlier this year, Egypt approved establishing a special free zone and international touristic port in the Ras al–Hekma peninsula, west of Alexandria, a cabinet statement said on Wednesday. The cabinet announcement followed the UAE-Egypt deal in February.

Prime Minister Mostafa Madbouly said the project is expected to attract “a minimum of $150bn” during the implementation phases, according to state media.

ADQ will invest $24bn to acquire development rights for Ras El-Hekma, with an additional $11bn allocated for prime projects across the country.

The consequent development will be built on an unprecedented area of over 40,600 feddans, the prime minister said.

It will encompass residential districts, prestigious international hotels, tourist resorts, expansive entertainment venues, and service facilities such as hospitals, schools and universities, he said.