Sisi Sells Egypt’s Coastal Town to UAE to Solve Currency Crisis

Egypt to invest nearly $22 billion in coastal town in agreement with UAE

Egypt has officially confirmed that it has reached an agreement with the United Arab Emirates for the investment of around $22 billion in the Ras Al-Hekma region, located along the Mediterranean coast. The region is approximately 350 kilometers northwest of the capital Cairo.

Hussam Heiba, Director General of the Egyptian Free Zones Administration, informed CNBC Arabia that the project to develop Ras al-Hikma is estimated to cost $22 billion, with a consortium from the UAE selected to work alongside local partners for the project.

The UAE consortium will be responsible for the financing, development, and management of the project, with both local and foreign companies set to participate in its implementation.

The move to develop Ras al-Hikma has been met with criticism from opposition leaders, who argue that Egypt is giving up one of its most beautiful coastal areas to overcome its foreign exchange shortage.

Egypt is in the midst of a serious economic crisis, with the national currency having lost 50% of its value against the US dollar on the black market over the last year. Inflation in the country is over 40% annually, and more than half of the population lives below the hunger line. During the last 10 years of President Abdel Fattah al-Sisi’s rule, Egypt’s foreign debt has increased to $164 billion.

This new investment is expected to bring much-needed development to the area but has stirred controversy among critics due to the economic downturn experienced by the country.

In related news, the International Monetary Fund (IMF) has concluded its two-week visit to Egypt with discussions about opening a new $10 billion loan to aid the country in addressing its economic challenges.

 

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