Egypt has received the second installment of the Ras al-Hikma deal from the UAE, worth $14 billion (LE655.7 billion), boosting the country’s dollar resources which recently suffered from a shortage of hard currency, Prime Minister Mostafa Madbouly announced on Thursday.
The nation’s foreign currency availability has improved after Egypt signed an agreement with the UAE in February, under which ADQ (the holding company) acquired the development rights for the Ras al-Hikma project for $24 billion to develop the area, in addition to converting $11 billion of UAE deposits with the Central Bank of Egypt into investments in major projects.
Egypt’s treasury has already received $10 billion in Emirati funds.
Madbouly, during his chairmanship of Thursday’s weekly meeting of the Egyptian Cabinet in the New Administrative Capital, noted that cooperation with the UAE side has begun regarding the procedures for waiving the value of an Emirati dollar deposit worth six billion dollars.
Thus its value will be converted into its equivalent in Egyptian pounds, in accordance with what was agreed upon in the investment partnership agreement for the development of the Ras al-Hikma City between both countries.
In a statement issued on Wednesday, Madbouly stated that he is in constant contact with the governor of the Central Bank, noting a steady increase in remittances from Egyptians working abroad, as well as a significant increase in dollar surrender to the banking system and exchange bureaus in light of the shrinking parallel market.
The Egyptian government has revised its expectations for the overall budget deficit in the current fiscal year 2023-2024 to 3.95 percent from previous expectations.
Largest deal of its kind
Egypt earlier in February announced the largest major investment deal in partnership with the UAE, dubbed “Egypt and UAE, a Partnership for the Development of Ras al-Hikma.”
Madbouly said that the project includes establishing hotels, entertainment projects, tourist resorts, a financial and business district, and an international airport.
This project will be the largest of its kind, he added, as it seeks to develop a city with an area of 170 million square meters or more than 40,600 acres.
Egyptian Cabinet spokesperson Mohamed al-Hommosany assured that the state is fully committed to compensating the people of the Ras al-Hikma region, adding that not a single citizen will be harmed by this project.
During a phone interview with CBC satellite channel in late February, Hommosany said that the Ras al-Hikma urban development project will witness investments of no less than US$150 billion, and provide many job opportunities.
This new city is expected to attract at least eight million tourists, he added, pointing out that the project will contribute to the development of the North Coast region.
