The Egyptian economy is in dire need of a boost, and a potential major agreement with the United Arab Emirates could provide just that. The UAE is in advanced talks to purchase and develop a large piece of land on Egypt’s Mediterranean coast, which has the potential to bolster the troubled economy of the North African nation.
An UAE consortium has been selected to work with Egyptian partners to develop the land in Ras el-Hekma, located about 350km (217 miles) northwest of Cairo, according to Hossam Heiba, the chief executive officer of the state-run General Authority for Investment and Free Zones. The estimated total project cost is $22bn, and an agreement is expected to be reached soon.
The Egyptian government is preparing to announce new projects to earn massive amounts of foreign currency and create new jobs, with 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, with Egypt possibly retaining ownership of about 20 percent of the vast territory.
The potential deal could strengthen ties between Egypt and the UAE, with the UAE having offered economic support to Egypt in the past. The boost in foreign currency could also positively impact Egypt’s talks with the IMF on a major loan, as well as help manage the country’s heavy foreign debts.
The IMF has been urging Egypt to sell state assets, make room for the private sector, and allow its currency to trade flexibly. Egypt, along with Qatar, is also playing a crucial role in talks aimed at ending Israel’s war on Gaza.