CAIRO – 26 February 2017: Three Egyptian real estate executives announced they have suspended housing deals with the Saudi Arabian government due to political tensions, while a Saudi housing ministry official denied any projects have been suspended, Reuters
on Thursday.
Al Ahly for Real Estate Development, Talaat Mostafa Group, Misr Italia, and Orbit Group had signed agreements with the Saudi Housing Ministry during King Salman bin Abdul Aziz’s visit to Cairo last year, each planning to build between 10,000 and 15,000 housing units in Saudi Arabia.
However, a number of political differences have emerged between the two countries since then, concerning the Syrian conflict and a controversy over the transfer of two Red Sea islands from Egypt to Saudi Arabia, which was announced by Egypt’s government in April and revoked by a court ruling earlier this year.
"We suspended the agreement with the Saudi Housing Ministry despite all project studies being concluded because of worries over tensions between Egypt and Saudi Arabia," Al Ahly for Real Estate Development Chairman Hussein Sabour told Reuters.
Meanwhile, Naif Abdulmouhsin Al-Rasheed, an advisor to the housing minister and general manager of investments and real estate development in the ministry, denied the suspension of any projects between Egypt and Saudi Arabia.
"In fact, there are advance dealings that are still taking place with specific projects. In addition, the Ministry of Housing welcomes any interest from both local and international developers, including our valued Egyptian partners," Rasheed told Reuters.
The two countries signed agreements worth $22.6 billion USD during Salman's visit last year.
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