In a bid to revitalize its struggling economy, Egypt is on the brink of striking a monumental deal with the United Arab Emirates (UAE) that could see the development of a sprawling piece of land on its Mediterranean coast. The proposed $22 billion project in Ras el-Hekma, about 217 miles northwest of Cairo, is set to be a game-changer, with potential to generate substantial foreign currency and create hundreds of thousands of new jobs.
The UAE consortium, in collaboration with Egyptian partners, is poised to spearhead this ambitious endeavor. While details remain scarce, Hossam Heiba, CEO of the state-run General Authority for Investment and Free Zones, has hinted at an impending agreement. The involvement of Abu Dhabi, the UAE’s capital, underscores the significance of this venture.
Notably, Egypt is grappling with its most severe foreign exchange crisis in decades, marked by multiple currency devaluations. Another devaluation is on the horizon, highlighting the urgent need for a financial boost. This project could not only provide a lifeline for Egypt’s economy but also bolster its negotiations with the International Monetary Fund (IMF) for a crucial loan. The IMF’s emphasis on privatization and currency flexibility aligns with Egypt’s economic reform agenda, which includes the sale of state assets.
Moreover, this deal could strengthen ties between Egypt and the UAE, with the latter being a staunch supporter of President Abdel-Fattah el-Sisi. The UAE’s past economic assistance to Egypt underscores its commitment to the country’s development.
In the broader context, Egypt’s role in mediating talks to end Israel’s conflict with Gaza, along with Qatar, adds geopolitical significance to this potential collaboration. As negotiations progress, all eyes are on Egypt’s economic transformation and its impact on regional dynamics.
(Source: Al Jazeera | The New Arab | Bloomberg)
