The Egyptian government expects the Ras El Hekma project to generate $35 billion within two months (Egyptian Council of Ministers via Facebook)

Egyptian Prime Minister Mostafa Madbouly said - today, Thursday - that Egypt has received $5 billion from the first installment of the Ras El Hekma deal and that it will receive another $5 billion tomorrow, Friday, denying that any clause in this deal would affect Egyptian sovereignty.

He added - in a statement - that measures had been taken to coordinate between the Central Bank of Egypt and the Emirati side to transfer $5 billion from the Emirati deposit to the Egyptian pound.

This came one day after statements by Egyptian President Abdel Fattah El-Sisi in which he said that part of the amounts announced in the agreement between Egypt and the UAE regarding the project to develop the Ras El-Hekma area had reached the Central Bank.

Al-Sisi added that a “similar” amount will arrive next Friday, and he indicated - in a speech during an event in Cairo - that the Egyptian-Emirati agreement came at a time when Egypt is experiencing a difficult economic situation.

Madbouly said on Thursday, “Within two months, Egypt will receive the rest of the amount that was announced, to complete the amount of $35 billion in direct investment entering the state from this deal, in addition to the 35% that the state will receive from the net profits of the project.”

He pointed out that the Ras Al-Hikma project is an investment partnership similar to many projects that have been and are being implemented between the government and the private sector under the partnership system, and “there is no clause in the contract that affects Egyptian sovereignty, and all clauses are subject to Egyptian laws.”

Madbouly stressed that “it was stipulated that the terms of the contract cannot be interpreted in a way that violates Egyptian law,” calling for not paying attention to those he described as “sceptical evil people who do not want good for Egypt or its people,” as he put it.

The beginning of economic reform

Madbouly considered the “Ras El Hekma” project “the beginning of reforming economic conditions,” and said, “The government will continue the measures it announced to rationalize investment spending, strengthen governance, and give the private sector broad opportunities in various economic sectors.”

He added, "The government will work and will continue its reform measures for the economy, as if these dollar resources had not arrived. Rather, we will work to pump new investments and expand existing investments."

Project details

Last Friday, Madbouly announced the details of the Ras El Hekma project according to these details:

  • A tourist real estate project called “New Ras El Hekma” with an area of ​​170.8 million square meters (about 40,600 acres).

  • The project is expected to generate $35 billion within two months, including $24 billion in direct liquidity, and $11 billion in Emirati deposits that will be transferred into Egyptian pounds in the project.

  • The project is part of Egypt's urban development plan for the year 2052.

  • There are expectations that the huge city will attract at least 8 million additional tourists to Egypt.

  • The UAE expects to invest at least $150 billion throughout the duration of the project’s implementation, with Egypt receiving 35% of the project’s profits.

Source: Social networking sites + agencies