Ras al-Hikma land transferred from Armed Forces to state urban development authority

The president enacted an official step on Tuesday toward actualizing the Ras al-Hikma deal, a landmark US$35 billion agreement signed with the United Arab Emirates for the development rights of a huge area of land located in Egypt’s Western Desert.

The 170.8 square kilometers of land, located in Marsa Matrouh, was officially owned by the Egyptian Armed Forces and will now pass to the New Urban Communities Authority, according to a Tuesday presidential decree.

Many details still stand to be clarified about the project, which comes as Egypt’s government responds to a chronic scarcity of foreign currency inflows that are hampering the country’s economy.

Prime Minister Mostafa Madbuly said that a US$10 billion installment was due to the Central Bank of Egypt as part of the deal by Friday.

An additional $5 billion is to come from converting the existing Emirati deposit at the central bank into investment, according to the prime minister, who described the deal outline for the first time on February 23.

Another $14 billion investment and further $6 billion from the existing deposits is due to be paid within two months, said Madbuly.

A statement from Abu Dhabi Holding Company (ADQ), the Emirati sovereign fund set to implement the deal, did not mention the timeline for payment, however.

President Abdel Fattah al-Sisi affirmed that the advance payment had already arrived during a televised address on Wednesday. “The sum that was already announced arrived yesterday, and a bit was deposited into the central bank today, and the same on Friday, by the grace of God Almighty,” he said.

Announcing the deal over the weekend, the prime minister did not specify the form of partnership between the UAE and Egypt. He stated only that “the project is not about selling assets, but a partnership where we receive funds and a share of profits throughout the project duration, which is the best way to reach an agreement. We receive compensation and a share of profits.”

Meanwhile, ADQ announced that it had acquired development rights for Ras al-Hikma for only $24 billion, with the Egyptian government retaining a 35 percent stake in the project.

Other potential sources of inflows have emerged in the press in the few days since the deal's announcement, including a similar project in Ras Gamila.

Citing undisclosed government sources, the privately owned Al-Masry Al-Youm reported on Monday that the government is planning to tender several seafront areas in the Red Sea for investment, including Ras Gamila in Sharm el-Sheikh.

Public Enterprise Ministry spokesperson Mansour Abdel Ghani denied any negotiations with the ministry for investment in Ras Gamila, but confirmed that the Cabinet had taken steps to establish a committee to study the offering and prepare a strategic vision for the area, which spans 160,000 square meters. Phoning into MBC Masr, Abdel Ghani said that Ras Gamila may be tendered through an international consultant to outline a strategy for utilizing the land. Based on this plan, he said, the appointed committee will oversee its management.

The government sources told Al-Masry Al-Youm that an expert committee has been formed to present the new lands for investment.

Distinctive touristic spots overlooking the Red Sea, beachfront islands and areas between Hurghada and Marsa Alam, which have previously attracted interest from Gulf investors, are set to be included.

Saudi and Qatari investment funds are actively pursuing investment opportunities in these areas, while the UAE is exploring further investments in the Mediterranean ports and regions, the sources said.