Egypt has agreed a $35 billion deal with the United Arab Emirates to develop the city of Ras al-Hekma on its northwest coast, Egyptian Prime Minister Mostafa Madbouly announced on Friday after weeks of speculation, Middle East Eye reported.

At a news conference attended by Egyptian and UAE officials, Madbouleh said Egypt would receive an advance of $15 billion next week and another $20 billion two months later.

The deal is the largest direct foreign investment in an urban development project in the country’s modern history, the prime minister said. According to him, it is a partnership between the Egyptian government and the UAE consortium led by ADQ.

News of the sale sparked criticism of the government from those who believe the land is one of Egypt’s most valuable coastal areas and should be developed by local investors.

But Madboul said the Egyptian state will have 35 percent of the profits from the project, even though it is a private investment with a majority stake in the UAE consortium.

He clarified that the area of ​​the Ras al-Hekma project is 170 million square meters and will include residential areas, tourist bases, schools, universities, an industrial zone, a financial and business center, an international port for tourist yachts and an international airport south of the city.

“We expect that after the completion of construction, the new city will attract 8 million tourists to Egypt,” he said.

Madbouleh said the transaction would include $11 billion that the United Arab Emirates had already contributed to the Central Bank, which would be converted into a grant.

Regarding the fate of the residents of Ras al-Hekma district, Madbuli said that they will be resettled in other districts and will receive financial compensation. He added that the project will ease the economic crisis the country is facing. (news.ro)