Prime Minister Mostafa Madbouly has witnessed the signing of a historic direct investment deal between Egypt and the UAE on Friday, Invest-Gate reports.

The agreement, inked at the New Administrative Capital, marks the largest investment deal in Egypt’s history. Egypt’s Minister of Housing, Utilities & Urban Communities Assem El-Gazzar and the UAE’s Minister of Investment Mohamed Alsuwaidi signed the agreement.

The joint venture aims to construct a state-of-the-art city called Ras El-Hekma, which will serve as a major urban, business, and tourism center on Egypt’s North Coast. The project, located west of Alexandria, will be implemented by the New Urban Communities Authority in partnership with the Abu Dhabi Development Holding Company (ADQ).

During the signing ceremony, Prime Minister Madbouly announced that the new project will inject $35 bn of foreign direct investment (FDI) into the economy within two months, representing the largest FDI sum in Egypt’s history. This immediate investment will help alleviate the country’s current shortage of hard currency.

Madbouly emphasized that the project will have a transformative impact on the North Coast and the country as a whole in the long term. He estimated that Emirati investments throughout the project’s implementation, the largest of its kind in Egypt’s history, are likely to surpass $150 bn.

The project will span an unprecedented area of over 40,600 feddans and will encompass residential districts, internationally renowned hotels, tourist resorts, expansive entertainment venues, and essential service facilities such as hospitals, schools, and universities.

Additionally, the city will feature administrative and service buildings, a free economic zone dedicated to information technology industries and logistics hubs, and a central business district designed to attract global companies.

Madbouly also mentioned the inclusion of a large marina to accommodate tourist yachts and ships, with the expectation that the completed city will attract 8 mn tourists to Egypt.

As part of the agreement, both parties have committed to establishing and developing an international airport to the south of the city. ADQ will oversee the airport’s development, and Egypt will receive a share of its revenues, as confirmed by Madbouly.