Egyptian Prime Minister Mustafa Madbouly announced, on the sidelines of the signing of a new real estate project agreement east of Cairo, that UAE-based Majid Al Futtaim and Egyptian company Meidar have earmarked joint investments worth $3.1 billion to develop an integrated real estate project within the 'Mada' development in New Cairo — a deal regarded as one of the most significant new UAE investments in the Egyptian market in recent times.
The project will be built on a total area of 553 acres, comprising an integrated mix of residential, commercial, and entertainment units, in line with Egypt's plans to expand its urban footprint east of the capital and attract greater volumes of foreign direct investment. Madbouly affirmed that Cairo continues to bet on the real estate sector as one of the principal drivers of economic growth, given its role in supporting dozens of industries and economic activities linked to it, from building materials to finishing and logistics services.
First phase
In press statements, Ahmed Galal Ismail, Chief Executive Officer of Majid Al Futtaim, revealed that the company expects to move to the actual launch phase of the project within the coming months, following the completion of all necessary regulatory procedures with the relevant Egyptian authorities. Ismail explained that the first phase of the project will cover 200 acres, which the company aims to fully develop within five years — a step that reflects a medium-term investment commitment to the Egyptian market.
Projected returns
For his part, Ayman Al Qawassi, Managing Director and Chief Executive Officer of Meidar, indicated that the project in its entirety will be completed over a longer period of 8 years, while total projected returns are estimated to exceed $3 billion — a figure that reflects the scale of economic viability both companies are banking on from this joint real estate expansion.
A new chapter
This deal does not come in isolation from a broader context of Gulf investment flows into Egypt over the past two years. It was preceded by the launch of the 'Ras Al Hekma' project with massive UAE investments totalling $35 billion — one of the largest foreign direct investment deals in Egypt's history — alongside a Qatari agreement to develop an integrated tourism project in the 'Alam Al Roum' area worth up to $4 billion. This series of deals cements the status of the North Coast and the areas surrounding Cairo as among the most prominent investment destinations on the Mediterranean, at a time when countries in the region are competing to attract Gulf capital.
The Golden Licence
The Egyptian government is counting heavily on continued attraction of Gulf investments, particularly from the UAE and Gulf states, amid an intensification of reassuring messages directed by Egyptian officials to foreign investors regarding the stability of the investment environment and the clarity of regulatory rules. The 'Golden Licence' forms a pivotal tool within this strategy, as this unified licence allows investors to establish and operate a project, allocate land, and obtain all necessary permits through a single government entity, rather than navigating multiple lengthy bureaucratic procedures. According to official statements, these licences are currently being granted immediately to major Gulf projects, in a clear attempt to reduce the time between the signing of agreements and the actual start of implementation on the ground.
This new deal is seen as an additional indicator of the depth of economic interconnection between Cairo and the Gulf states specifically in the real estate sector — a sector that is attracting growing interest from Gulf investors as one of the most stable and capable of generating long-term returns in the Egyptian market.