The Sovereign Fund of Egypt (SFE) has signed an agreement with the Supreme Council of Antiquities (SCA) to kick off plans to develop and operate Old Cairo’s Bab Al-Azab landmark into a tourist area, in partnership with private investors, Invest-Gate reports.

The deal gives the SFE the green light to look for private partners that would take part in the development project either as investors or service providers, with the SCA retaining managerial control over the site, in an attempt to revive the 56,000-square-meter area and boost its historic and economic value, according to a ministerial statement on June 2.

Speaking of the move, CEO of SFE Ayman Soliman stated, “The fund will team up with experienced private investors to develop the Bab Al-Azab site. We will equip the buildings in the area to offer visitors and tourists a rich cultural experience that accentuates the Citadel’s historic value and highlights the pivotal events it witnessed and its role in Egypt’s modern history. It is essential that the private sector plays an integral role in adding economic and cultural value to the historical tourism sector.”

Upon completion, Bab Al-Azab area will comprise a museum with interactive technologies, traditional markets, crafts and design schools, a cultural arts theatre, as well as a historical library. “The importance of this project is that we are utilizing an undeveloped closed part of the Citadel, which will positively impact the entire area in historic Cairo, creating jobs and value in the tourism sector with private partners, and adding new investment products in the Egyptian economy,” Soliman added.

Deemed the first cooperation between both parties, not to mention a prelude to the SWF’s contribution to the tourism and service sectors, negotiations took slightly more than six months after the collaboration between the SFE and SCA has been approved by the Cabinet in late 2019, the statement highlighted.

Pinning the aim of ramping up returns on state-owned assets, the agreement is geared towards generating positive gains “through value accretive investments to better utilize Egypt’s resources for future generations,” Minister of Planning and Economic Development and Chairwoman of SFE Hala El Saeed was quoted as saying.

Last year, Soliman told Reuters that the fund is looking to Egyptian tycoon and Chairman of Orascom Development Holding Samih Sawiris to invest as much as EGP 2 bn in developing the Bab Al-Azab site, with the possibility of other investors to participate such as Al Ismaelia for Real Estate Investment, which is already on board to handle execution.