Cairo (diplomat.so) - Abu Dhabi-based sovereign fund ADQ has designated UAE's Modon Holding PSC as the master developer for the expansive Ras El Hekma project on Egypt's north coast, Modon announced in a statement on Friday. The project, located along the Mediterranean coast, is part of a $35 billion investment deal, including $24 billion for land acquisition, signed earlier this year.
Modon, an Abu Dhabi developer with majority shareholders ADQ and IHC, will lead the development of the project, which aims to build a next-generation city covering 170 square kilometers, nearly a fifth of Abu Dhabi's size. Construction is set to begin next year. The deal is seen as a vital financial boost for Egypt, which has been grappling with severe foreign currency shortages worsened by Suez Canal revenue losses due to Houthi attacks on Red Sea shipping.
In addition to its role as master developer, Modon signed a framework agreement with Egypt’s Orascom Construction, designating them as a key contractor for the project’s initial phase. Memoranda of understanding were also signed with Elsewedy Electric, Abu Dhabi Airports, and Abu Dhabi energy firm TAQA for potential future collaborations.
Absent from the announcement was Egypt's Talaat Moustafa Group, which had previously expressed intentions to participate in the Ras El Hekma development. The omission raises questions about its role moving forward in this mega-project, set near an area known for its upscale resorts and beaches frequented by Egypt’s wealthy elite.
Leave a comment