Such a major deal could boost the Egyptian economy, which is facing a serious currency crisis.
The United Arab Emirates is in advanced talks to buy and develop a large piece of land on Egypt's Mediterranean coast in a deal that could boost the North African nation's troubled economy.
A consortium from the United Arab Emirates has been chosen to work with Egyptian partners to develop the land in Ras el-Hekma, about 350 kilometers (217 miles) northwest of Cairo, CNBC Arabia said Wednesday, citing an Egyptian official.
Hossam Heiba, chief executive of the state-run General Investment and Free Zone Authority, told the broadcaster that the initial estimate for the total project was $22 billion and that an agreement was expected soon. He did not provide further details or name any company or entity.
On Thursday, Egypt's cabinet said the government was preparing to announce new projects that will “generate huge amounts of foreign currency” and create hundreds of thousands of new jobs, in an apparent reference to a multibillion-dollar development planned along the coast. Mediterranean in an area of first class luxury resorts.
The emirate of Abu Dhabi, one of the seven of the United Arab Emirates and the country's capital, is involved in the project, according to unidentified people familiar with the conversations cited by the American media Bloomberg, which also reported that Egypt could retain the owned about 20 percent of the vast territory covering 180 million square meters.
He said the minority stake would include a stake by the Talaat Moustafa Group, a real estate developer, and some Egyptian state entities, adding that no final decision has been made.
The major deal could strengthen ties between Egypt and the United Arab Emirates, a major backer of Egyptian President Abdel-Fattah el-Sisi and which has previously offered economic support in the form of investments or other assistance.
Egypt is grappling with its worst currency crisis in decades, having suffered several currency devaluations, and is expected to enact another one soon – the fourth since early 2022.
A currency boost could also positively impact Egypt's talks with the International Monetary Fund (IMF) on a major loan, which could attract other partners and secure some $10 billion in financing.
Egypt must pay off heavy foreign debts this year and the IMF has been pressuring it to sell state assets, make room for the private sector and allow its currency to trade flexibly.
An IMF team was in Egypt last month to negotiate the revival and possible expansion of a $3 billion loan deal that collapsed shortly after it was signed in December 2022.
Egypt, along with Qatar, is a key mediator in talks aimed at ending Israel's war on Gaza, beginning with another pause in hostilities and the exchange of Palestinian prisoners imprisoned in Israeli jails for captives held in the enclave.
