The United Arab Emirates is in advanced talks to purchase and develop a large piece of land on Egypt’s Mediterranean coast in a deal that could bolster the troubled economy of the North African nation. An UAE consortium has been picked to work with Egyptian partners to develop the land in Ras el-Hekma, about 350km (217 miles) northwest of Cairo. The initial estimate for the total project was $22bn and an agreement is expected soon.
Egypt’s cabinet said the government was preparing to announce new projects that will “earn huge amounts of foreign currency” and create hundreds of thousands of new jobs. The emirate of Abu Dhabi, one of seven in the UAE and the country’s capital, is involved in the project. Egypt may retain ownership of about 20 percent of the land, while the Talaat Moustafa Group and some Egyptian state entities may also have a stake.
The major deal could strengthen ties between Egypt and the UAE, a chief backer of Egyptian President Abdel-Fattah el-Sisi. Egypt is dealing with its worst foreign exchange crisis in decades and is expected to enact another currency devaluation soon. A foreign currency boost could positively impact Egypt’s talks with the International Monetary Fund (IMF) on a major loan, that may bring in other partners and secure some $10bn in financing.
