The United Arab Emirates is in advanced talks to purchase and develop a large piece of land on Egypt’s Mediterranean coast in a deal that could bolster the troubled economy of the North African nation.
An UAE consortium has been picked to work with Egyptian partners to develop the land in Ras el-Hekma, about 350km northwest of Cairo, an Egyptian official said.
According to the chief executive officer of the state-run General Authority for Investment and Free Zones, Hossam Heiba, the initial estimate for the total project was $22bn and that an agreement was expected soon.
Last week, Egypt’s cabinet said the government was preparing to announce new projects that will “earn huge amounts of foreign currency” and create hundreds of thousands of new jobs in an apparent reference to a multibillion-dollar development planned along the Mediterranean coast in an area of upscale luxury resorts.
The emirate of Abu Dhabi, one of seven in the UAE and the country’s capital, is involved in the project. Egypt may retain ownership of about 20% of the vast territory spanning 180 million square metres.
