Egypt has received an amount of $3.5 billion as part of the investment agreement for the implementation of a project to develop and grow a parcel of land within the “Samla and Alam Al-Roum” area on the northwestern coast of Matrouh Governorate.
The project is being carried out through an investment partnership between the Ministry of Housing, Utilities and Urban Communities, represented by the New Urban Communities Authority (NUCA), and Qatari Diar, under a contract that was signed on November 6.
The official spokesperson for the Cabinet, Counselor Mohamed Al-Homsany, said in a statement today that this amount represents the “cash consideration,” which constitutes the first component of the agreement. This will be followed by a second component in the form of an “in-kind consideration,” consisting of a built-up area from the residential component of the project, represented by housing units. The proceeds targeted from the sale of these units after their handover are estimated at $1.8 billion.
In addition, the New Urban Communities Authority is entitled to a share equivalent to 15% of the project’s net profits (the net profits of the project company and its affiliated and controlled entities, whether belonging to Qatari Diar or the project company), after the full recovery of the reimbursable investment costs, in accordance with the provisions of the agreement.
The official spokesperson affirmed that the step realized today reflects the directives of President Abdel Fattah El-Sisi and his brother Sheikh Tamim bin Hamad Al Thani, Emir of the State of Qatar, to deepen the economic partnership between Cairo and Doha, continue strengthening bilateral cooperation between the two countries, and work jointly to promote sustainable economic development that serves the aspirations of the two brotherly peoples.
