President el-Sisi of Egypt has stabilized the country since taking power and is pursuing economic recovery. At a major economic conference, Egypt secured over $140 billion in investments, loans, and donations pledged primarily from Gulf states like Saudi Arabia, UAE, and Kuwait. As part of rebuilding the economy, Egypt plans to construct a new $45 billion administrative capital city east of Cairo, which will be developed through partnerships with UAE developers like Emaar Properties. The new capital is one element of broader foreign investment and development projects that are boosting Egypt's economy through partnerships with UAE and other Gulf-based companies.

1. Gulf Property 45
trol in Cairo, after ascending
to the presidency following
his landslide victory in June
2014, Egypt is well on its
path to much-needed eco-
nomic recovery. However,
the North African nation,
which has been mired in po-
litical and social unrest since
the overthrow of longtime
president Hosni Mubarak in
2011, is desperate for foreign
investments to rebuild the
economy.
To acquire foreign funds
and capital, Egypt organised
an ambitious economic con-
ference in March, and the
administration used the plat-
form to reach out to various
donor nations and busi-
nesses. The three-day con-
ference held at the Red Sea
resort city of Sharm El
Sheikh, saw multiple political
leaders and prominent entre-
preneurs from across conti-
nents, pledging billions of
dollars in aid and invest-
ments to Egypt.
According to a report by
The Wall Street Journal,
Egypt signed investment
deals and secured loans and
donations worth more than
$140 billion during the con-
ference. The GCC states —
Saudi Arabia, the United
Arab Emirates and Kuwait –
were quick to pledge another
$12 billion (with each state
contributing $4 billion) to help
stabilise Egypt’s economy,
the report said.
It is worth nothing that ties
between the GCC states and
Egypt have improved ever
since Sisi assumed power,
and the former has become
a key benefactor to the latter.
Relations between the UAE
and Egypt, in particular, have
flourished to a great extent.
The two nations have been
cooperating on not only eco-
nomic development but also
on other crucial spheres of
politics and diplomacy. Ties
between Abu Dhabi and
Cairo hit a new high when
Sisi visited the UAE in Janu-
ary. Leaders of the two coun-
tries agreed to cooperate on
S
tability seems to
have returned to
Egypt now with
President Abdul Fat-
tah el-Sisi at the
helm of affairs. Egypt is fast
emerging out of the dark
days of unrest between the
security forces and support-
ers of the Muslim Brother-
hood, which followed days
after former president Mo-
hammed Morsi of the out-
lawed group was replaced by
the Egyptian military, headed
by Sisi, in July 2013.
With Sisi now firmly in con-
Realtors gain big from
booming UAE-Egypt ties
Realtors gain big from
booming UAE-Egypt ties
Indrajit Sen
Senior Reporter
FOCUS

2. 46 Gulf Property
However the EEDC will be
remembered most as the
summit when the country’s
government declared plans
to build a new administrative
and financial capital.
Egypt’s capital
gains
The world was taken by sur-
prise when Egypt’s leaders in
March announced that they
were shifting the seat of gov-
ernment out of the historic
city of Cairo and laid out con-
crete plans for the new capi-
tal.
The new capital city would
be built on the road to Ain al
Sokhna to the east of Cairo,
and closer to the Red Sea.
The city would be sprawled
across some 700 square
kilometres and the govern-
ment hopes it would accom-
modate as many as 7 million
people and generate about
FOCUS
not just economic issues, in-
cluding trade, investments
and energy, but also took a
joint stand against terrorism.
Sisi, in his concluding re-
marks to the Egypt Eco-
nomic Development
Conference (EEDC),
thanked the generous politi-
cal leaders and benevolent
capitalists. But he also said
that his country would need
a lot more money in the com-
ing years, to strengthen the
economy and bring about
prosperity to the population.
“I know Egypt and its prob-
lems and I can see them as I
can see you now,” Sisi told
the vast audience at Sharm
El Sheikh. “I know the solu-
tions as I see you now. Egypt
needs no less than $200 to
$300 billion to have real
hope for the 90 million Egyp-
tians to really live, really
work, and really be happy.”
“We are behind, and those
who are late must either
speed-walk or run…even
running will not be enough in
our case,” he remarked.
Capital Development
Source: BBC News
Country From To In
Russia St. Petersburg Moscow 1918
Brazil Rio De Janeiro Brasilia 1950
Pakistan Karachi Islamabad 1959
Tanzania Dar Es Salaam Dodoma 1980
Ivory Coast Abidjan Yamoussoukro 1983
Kazakhstan Almaty Astana 1997
Myanmar Yangon Naypyidaw 2005

3. Gulf Property 47
1.5 million jobs. After com-
pletion of the construction,
the new capital will be linked
to Cairo and the Suez Canal.
The project is estimated to
cost around E£150 billion
($45 billion).
His Highness Sheikh Mo-
hammed bin Rashid Al Mak-
toum, Vice-President and
Prime Minister of the UAE
and Ruler of Dubai, and Sisi
oversaw the signing of the
agreement to build the new
capital for Egypt on the side-
lines of the economic confer-
ence in Sharm Al Sheikh,
according to media reports.
The deal was signed by
Mohammed Alabbar, Chair-
man of Dubai-based devel-
oper Emaar Properties, and
by Dr Mostafa Madbouly,
Egypt’s Minister of Housing,
Utilities and Urban Develop-
ment.
Among others present
were HH Sheikh Abdullah bin
Zayed Al Nahyan, Minister of
Foreign Affairs, Egyptian
Prime Minister Ibrahim
Mahlab, members of the
UAE delegation, and a num-
ber of other ministers and
senior officials.
More than 35 specialised
Egyptian construction com-
panies will take part in the
implementation of the proj-
ect.
The new capital will host
ministries, official institutions
and embassies, headquar-
ters for companies and pri-
vate sector firms. As far as
civic amenities are con-
cerned, the new city will also
include an airport, about
10,000 roads, resorts and
modern shopping centres
and residential neighbour-
hoods, among others, as per
various media reports. An-
other report said that a tower
resembling the Eiffel Tower
in Paris has also been
planned, for tourism pu-
poses.
The new capital, which
does not have an official
name yet, will be named
after His Highness Shaikh
Mohammed bin Zayed Al
Nahyan, Crown Prince of
Abu Dhabi and Deputy
Supreme Commander of the
UAE Armed Forces.
The project is estimated to
take up to seven years to be
completed.
‘Emaar not
building
Egypt’s capital’
Alabbar has refuted widely-
circulating media claims that
Emaar has been tasked with
the responsibility of building
Egypt’s new capital.
In an interview with Egypt-
ian TV anchor Amr Adib, post
the signing of the deal, Alab-
bar explained that he co-
founded a new company
named ‘Capital City Part-
ners’. He clarified that this
new enterprise was solely
dedicated for the develop-
ment in Egypt and stressed
that it was independent of
Emaar.
"The new capital is a huge
project. It needs focus, disci-
FOCUS
pline and prioritising," he
said, adding that Capital City
Partners is in charge of de-
signing and implementing
plans for the new capital,
without sub-contracting.
Emaar Properties too an-
nounced in a Dubai bourse
statement in March that it
was not involved in develop-
ing the new Egyptian capital.
‘We would like to clarify that
Emaar is not involved in the
development of the new cap-
ital city project in Egypt’, it
said.
He also made a startling
revelation saying that the
land for the proposed city
was provided to the Emirati
company for free by the
Egyptian government.
UAE developers
make hay
However, Emaar is presently
aggressively pursuing vari-
ous mega projects in Egypt,
through Emaar Misr, its sub-
sidiary company in the coun-
“Emirati aid to
Egypt over past 2
years reached $14
billion for projects
in education,
housing, transport,
health, food
security, energy.
We announced new
support package of
$4 billion to boost
Egyptian economy.”
– His Highness
Sheikh Mohammed
Bin Rashid Al
Maktoum on Twitter

4. vestments of E£4 billion.
“The additional projects af-
firm our strong belief in the
vast opportunities available
in the Egyptian market,”
media reports quoted Bejjani
as saying.
Majid Al Futtaim’s move to
boost investment is close on
the heels of its recent an-
nouncement a five-year in-
vestment plan that would see
the group developing Mall of
Egypt with investments of
E£5 billion, the expansion of
Carrefour hypermarkets and
supermarkets network to 55
branches by the end of 2019
with investments of E£5 bil-
lion, and the recent expan-
sion of City Centre
Alexandria with investments
of E£70 million.
“As Egypt is undergoing a
much needed economic re-
form process, we are work-
ing restlessly to identify the
proper partners who will col-
laborate with us as we en-
Al Habtoor
strengthens
ties in Egypt
U
AE-based busi-
ness conglomer-
ate Al Habtoor
Group has been
considering plans
for large-scale invest-
ments in Egypt. Chairman
Khalaf Ahmad Al Habtoor
is contemplating building a
project similar to Al
Habtoor City currently
under construction in
Dubai, a statement said.
He is also believed to be
looking at potential tie-ups
in Egypt’s automobile in-
dustry. “We are in the
process of conducting fea-
sibility studies in the real
estate, hospitality and
auto sectors. If good op-
portunities present them-
selves then we will jump
on them,” the statement
quoted Khalaf Al Habtoor
as saying. “This will not
only be a boost to the
Egyptian economy, and
provide jobs for many
Egyptians, but it will also
send out a message that
Egypt is ripe for invest-
ment.”
In March, Al Habtoor dis-
cussed his investment
plans with Tarek M El-
Ghazaly of National Bank
of Egypt. Ghazaly told Al
Habtoor that the bank is
keen to help Al Habtoor
Group secure key invest-
ment opportunities in
Egypt, especially Cairo.
Earlier in the month, Al
Habtoor met Hisham
Okasha, Chairman of the
National Bank of Egypt to
discuss the Group’s in-
vestment opportunities in
the country and to look at
ways in which the bank
could participate, the
statement mentioned. g
FOCUS
lion to introduce the largest
VOX cinemas (the com-
pany’s movie theatre brand)
over the coming five years.
Addressing a press confer-
ence at the EEDC, Bejjani
said the Egyptian govern-
ment had succeeded in cre-
ating an investment climate
that has encouraged Majid Al
Futtaim to increase its invest-
ment to E£22.5 billion, in ad-
dition to unlocking two major
investments as part of the
original E£18 billion plan.
During the conference, Be-
jjani signed a memorandum
of understanding for the new
projects with the Egyptian
government. he also un-
veiled two projects forming
part of the original E£18 bil-
lion investment plan, includ-
ing a new mall, under the
name of City Centre Almaza,
with investments of E£P3.5
billion, and the major rede-
velopment and expansion of
City Centre Maadi, with in-
try, and is believed to be de-
veloping two large-scale
mixed-use projects.
Majid Al Futtaim, one of the
UAE’s leading retail and
leisure group, also an-
nounced in March that it
would boost total invest-
ments in Egypt to E£22.5 bil-
lion (Dh10.8 billion) from
E£18 billion as part of a mas-
sive expansion drive in the
retail sector involving the
opening of a malls, hyper-
market and supermarkets
across Egypt.
Alain Bejjani, Chief Execu-
tive Officer of Majid Al Fut-
taim Holding, said that an
additional investment of E£4
billion is allocated for the de-
velopment of four neighbour-
hood centres in the new
residential developments in
and around Cairo, as well as
for the development of four
new shopping malls in
greater Cairo. The enterprise
would also invest E£500 mil-
48 Gulf Property

5. Gulf Property 49
deavour to achieve prosper-
ity for all Egyptians. As such,
it is important for us to work
with experienced, committed
partners and we believe that
Majid Al Futtaim has a signif-
icant role to play in the devel-
opment of our country’s retail
landscape and economy in
general,” said Ashraf
Salman, Egypt’s Minister of
Investment, who was also
present at the signing cere-
mony.
Similarly, other major UAE
developers and contractors
have also invested heavily in
the Egyptian economy. Lux-
ury real estate developer
Damac Properties has
planned a huge master-
planned mixed-use develop-
ment named Gamsha Bay;
although the project is yet to
take off. Construction firm
Arabtec has also been as-
signed by the Egyptian gov-
ernment to build 1 million
affordable homes. g
FOCUS
Abu Dhabi re-
altor plans to
build $80bn
city in Egypt
E
agle Hills, an Abu
Dhabi-based real es-
tate developer, is re-
portedly planning to
build a Dh293 billion
(US$80 billion) city near the
Egyptian capital Cairo — a
project that will focus on pro-
viding affordable housing.
News agency Bloomberg
referred to two of its sources
‘with knowledge of the mat-
ter’ in its report, saying that
the new city will include an
airport, hotels, a mall, as
well as civic amenities such
as hospitals and schools.
When contacted by Gulf
Property, a source close to
the company however, de-
clined to comment, saying
Eagle Hills was yet to make
any announcement.
Separately, in an interview
with Bloomberg TV late in
February, Ashraf Salman,
Egypt’s Minister of Invest-
ment, said that ‘the project
will be privately funded by
an “investor developer” and
possible international part-
ners and will cost $75 billion
to $80 billion over (a period
of) 12 years’.
Salman said that the
choice of developer has
been narrowed down to two
companies from the UAE.
The project was to be for-
mally announced by the
Egyptian government at the
EEDC in Sharm El Sheikh in
March, although no mention
of the project was made.
The project will be built to
the east of Cairo and ‘form a
natural progression toward a
new development area on
the Suez Canal’, Salman re-
portedly said. The city will be
the same size as the New
Cairo suburb, he said.
Eagle Hills already has an
international portfolio that in-
cludes projects in Bahrain,
Nigeria and Serbia. It is also
worth noting that Mohamed
Alabbar, the Chairman of
global real estate developer
Emaar Properties, also
leads Eagle Hills as a Board
Member. The company that
claims to be ‘experts in ur-
banisation and renewal’,
says: “Our flagship destina-
tions positively impact busi-
ness and tourism, while a
'halo effect' ensures sustain-
able economic growth. The
vibrant residential projects
capture the very best the city
has to offer, providing the ul-
timate luxury lifestyle,” says
the company’s website.
“Born in the UAE, Eagle Hills
is looking to share its expert-
ise with aspiring nations.”g