Head of GAFI gives first official confirmation of Ras El Hikma development plans

Cairo – February 8, 2024: Confirming reports by various media outlets, Hossam Heiba, Head of the General Authority for Investment and Free Zones (GAFI), announced that an Emirati consortium has been selected to begin work on a $22 billion project in the North Coast’s Ras El Hikma.

Heiba’s comments are the first confirmation by an Egyptian official since media outlets began publishing reports last week on the potential sale and development of the area.

Ras El Hikma is one of several locations earmarked by the government’s comprehensive urban development plan for the North Coast, in line with its ambitious 2052 vision, according to an official source that was cited by media outlets last week.

While the GAFI head did not disclose what type of project was being developed, media outlets have speculated that the government is looking to establish an international tourist city project similar to the New Alamein City.

"We received offers from several international investment companies, and an Emirati developer was chosen to implement the project," explained Heiba, adding that investments total at $22 billion but may go higher down the line. He also noted that the investments will not be pumped into the project all at once, suggesting payment will come in tranches/phases.

Heiba explained that the Emirati consortium will be responsible for financing, developing and managing the project.

“We have finished the negotiations and are now preparing to sign contracts,” Heiba explained but did not disclose any of the companies involved.

The fresh round of investments will inject much-needed fresh hard currency to the country as it aims to close the gap between official and black market USD rates caused by a foreign currency shortage.

After a round of news related to the International Monetary Fund and EU, black market USD prices witnessed a steep drop, with the Egyptian pound rallying against the USD to around LE 53 on Sunday, building up strength after falling into a peak of 72 against the USD last week.

Last Thursday, the International Monetary Fund announced that they were close to finalizing a new deal for an extended loan to Egypt, followed by the EU revealing that it has officially put aside additional financial assistance for Egypt.

On Thursday, as of 12 PM, the black market rate stood at around LE 62-62 against the USD.