Mostafa Madbouly, the Prime Minister, witnessed on Thursday at the Cabinet headquarters in the New Administrative Capital, the signing ceremony of a new investment deal.
This deal is an investment partnership between the Ministry of Housing, Utilities, and Urban Communities, represented by the New Urban Communities Authority (NUCA), and the Qatari Diar to execute a project for the development of a plot of land measuring 4900.99 feddans (equivalent to 20,588,235 square meters) in the Samla and Alam El-Roum area of the North West Coast in Matrouh Governorate.
Project goal and scope
The agreement aims to establish an integrated urban and developmental project in accordance with global standards, to become a regional attraction for various service, tourism, residential, and commercial activities.
The objective is to transform the Alamein and Rume area into a world-class integrated coastal, tourism, and investment zone, as part of the current efforts of the Egyptian State to attract more Foreign Direct Investment (FDI).
The project includes the construction of:
- Upscale residential complexes and districts.
- Tourism and entertainment projects.
- Open artificial lakes.
- Golf courses.
- One international tourist marina and two local internal marinas.
- Infrastructure facilities, including electricity distribution stations, water desalination and treatment plants, hospitals, schools, and universities, in addition to a number of governmental headquarters.
- Land use allocation: Residential land accounts for approximately 60 percent of the total area, service areas not exceeding 15 percent, and roads, squares, green, and open spaces within 25 percent. There is no industrial component in the project land. The project land will be delivered free of all encumbrances in two main phases and a number of sub-phases within each.
Financial details of the partnership
The Prime Minister clarified the financial aspect stipulated in the agreement with the Qatari company, noting that the concluded deal comprises two main parts:
- Cash price: A value of $3.5 billion to be transferred by the investor before the end of the current year.
- In-kind consideration: A built-up area from the residential component of the project, consisting of residential units. It is targeted that the sale of these units, after handover, will realize an estimated value of $1.8 billion).
- Profit sharing: The deal also includes a share of the profits allocated to the New Urban Communities Authority (NUCA). NUCA is entitled to 15 percent of the net profits of the project (net profits of the project company and its controlled affiliated entities, whether from Qatari Diar or the project company), after the full recovery of the recoverable investment cost, as per the agreement’s provisions.
