Egypt reportedly received 2nd and final tranche from Ras El Hekma

Cairo – May 14, 2024: The UAE has reportedly transferred the second and final tranche of its $35 billion deal for Egypt’s Ras El Hekma, securing its rights to develop the North Coast area, according to local media.

Reportedly received by Egypt on Sunday, the tranche consisted of $14 billion and $6 billion currently held from a previous deposit by the UAE at the Central Bank of Egypt (CBE).

The first tranche, $15 billion in fresh money, of the $35 billion deal was received soon after the deal’s signing in late February.

The Egyptian government is expected to allocate around $11 billion to paying off some of its external debt.

Egypt’s external foreign debt rose by $3.3 billion during the first half of the fiscal year to hit $168 billion, compared to $164.7 billion reported at the end of the previous fiscal year.

It is anticipated that the central bank will distribute $6 billion into the banking sector to support clearing arrears and make foreign currency available for essential imports.

Ras El Hekma will be “competing with the most important cities of the world” by 2025, claims a promotional video released in March for the new project.

The video reveals some of the UAE’s plans for the coastline, noting that it will host factories, farmland and concert halls, run on clean energy, and create millions of jobs.

The deal has drove a significant shift in Egypt’s economic landscape, leading to a devaluation of the Egyptian pound, the International Monetary Fund increasing its loan to the country by $5 billion to $8 billion, and several fresh injections from international groups and investors.