Egypt secures first tranche of $15 billion from Ras El Hekma deal

This latest infusion brings the total secured funds from the project to $15 billion within just a week, revitalizing an Egyptian economy grappling with a foreign currency shortage.

The $15 billion payment consists of $10 billion of fresh inflows, and $5 billion transferred from UAE deposits at the Central Bank of Egypt (CBE) in Egyptian pounds, according to the statement.

As per a previous statement by the cabinet, the total sum – including the remaining $20 billion due within two months – will be retained by the CBE. 

The CBE will provide an equivalent amount in Egyptian pounds to fund the project as per the deal announced last week.

The investment deal focuses on developing the Ras El Hekma area on the North Coast and injecting much-needed foreign currency into the economy. 

This $35 billion investment marks the largest foreign direct investment (FDI) in Egypt's history.

The deal would allow Egypt to retain a 35 percent stake in the project.

The project “serves as a model for future investment partnerships that can bring substantial revenues,” Prime Minister Mostafa Madbouly said in a Cabinet meeting on Thursday.

Such projects, he added, target attracting foreign currency investments over several years, generating substantial tax revenues, and creating millions of jobs.

All terms of the Ras El Hekma project adhere to Egyptian laws, Madbouly asserted, refuting claims that the country’s sovereignty would be compromised by the deal.

The Cabinet asserts that the deal, signed by Egypt's New Urban Communities Authority and the Abu Dhabi Development Holding Company, will help alleviate the country's current shortage of hard currency.

Madbouly said the project is expected to attract further a minimum of $150 billion during the implementation phases.