Egypt has received a $14bn second tranche of the Ras El-Hekma development deal from the United Arab Emirates (UAE), Prime Minister Mostafa Madbouly announced on Wednesday.
In addition to the $14bn, the UAE has agreed to relinquish a $6bn deposit at the Central Bank of Egypt (CBE), which will be converted to Egyptian pounds as per the investment partnership agreement for Ras El-Hekma City.
This latest influx of funds follows a $10bn first tranche received in March, along with a $5bn conversion of UAE deposits at the CBE into Egyptian pounds.
This injection of funds further bolsters Egypt’s dollar resources and contributes to the ongoing economic reforms.
The overall $35bn investment deal, announced in February, involves ADQ, an Abu Dhabi-based investment and holding company, acquiring development rights for Ras El-Hekma for $24bn, with the aim of transforming the region into one of the largest new city developments led by a private consortium.
As part of this investment, ADQ said it will convert $11bn of UAE deposits at the CBE that will be utilized for investment in prime projects across Egypt to support its economic growth and development.
Madbouly expressed confidence in the trajectory of Egypt’s economic indicators, emphasizing the importance of maintaining fiscal discipline, prioritizing private sector growth, and focusing on key sectors like industry, agriculture, communications, and tourism as part of the broader economic reform agenda.
The Prime Minister also highlighted a growing trend of Egyptians abroad repatriating funds, contributing to a steady increase in remittances. He noted a significant rise in dollar relinquishment through the banking system and exchange bureaus, coinciding with a decline in the parallel market.
The exchange rate of the US dollar against the Egyptian pound has stabilized, reaching EGP 46.8003 for buying and EGP 46.8989 for selling on Wednesday, the lowest level since the liberalization of the exchange rate in March.
Madbouly reiterated the government’s ongoing communication with the CBE Governor, Hassan Abdalla, regarding these developments.
