Ras El Hekma “a catalyst for the development of Egypt’s economy,” to bring in $25B to GDP

Cairo – October 7, 2024: “As a project of unprecedented scale and impact, Ras El Hekma will be a catalyst for the development of Egypt’s economy by offering opportunities for businesses and stimulate tourism,” explained His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Group Chief Executive Officer of ADQ in a recent joint press release by ADQ and Modon Holding.

Abu Dhabi sovereign wealth fund ADQ appointed Modon Holding as the master developer for Ras El Hekma over the weekend, along with several significant memoranda of understanding (MoUs) signed to facilitate the project's development in the presence of President Abdel Fattah El-Sisi and UAE’s President His Highness Sheikh Mohamed bin Zayed Al Nahyan.

 

According to the release, the Ras El Hekma megaproject is expected to contribute approximately $25 billion annually to Egypt's GDP and create around 750,000 jobs, with projected cumulative investments reaching $110 billion by 2045.

“Modon Holding brings a wealth of expertise in master planning and will pioneer state-of-the art, innovative solutions, creating a destination that will deliver long-term value for Egypt and its people,” Alsuwaidi noted.

Modon will oversee the first phase, covering 50 million square meters, while the remaining 120 million square meters will be developed in collaboration with various local and international partners under the newly established Ras El Hekma Urban Development Project Company, a subsidiary of ADQ.

A framework agreement was established with Orascom Construction, designating them as one of the primary contractors for the initial phase of the project.

Modon Holding entered into an MoU with Elsewedy Electric to explore opportunities for supplying building materials and collaborating on the development of industrial parks. This collaboration is set to enhance the project's infrastructure and manufacturing capabilities.

To support the creation of transport links, Modon signed an MoU with Abu Dhabi Airports, collaborating on airport strategic planning, design, development, and operational support, ensuring that Ras El Hekma will be accessible to international travelers.

They also partnered with TAQA to explore cooperation opportunities related to the development, financing, and operation of greenfield utilities infrastructure, including water desalination and electricity transmission projects.

Modon Holding signed an MoU with Valderrama for the development and operation of golf communities, adding a recreational aspect to the planned urban environment.

The project will further incorporate smart city technologies, with a separate agreement with e& Egypt to facilitate the design and implementation of digital connectivity, fiber networks, and IoT-enabled solutions.

An Mou with Candy International aims to explore luxury real estate development opportunities, leveraging Candy’s extensive international reach, while an agreement with Montage International looks to develop and manage luxury hotels in Ras El Hekma.

Agreements with Accor and Ennismore will see the operation of hotels and resorts within Ras El Hekma, enhancing its appeal as a premier tourist destination.

The company also signed an MoU with Burjeel Holding for the development of multi-specialty healthcare facilities and innovative healthcare solutions.

Upon completion, the development will be home to two million people and feature more than 40 kilometers of green spines, set to make Ras El Hekma the greenest megaproject in the region, the press release wrote.