Abu Dhabi-based investment and holding company ADQ announced on Friday that it has appointed Modon Holding as the master developer for the 170 million square metres (sqm) Ras El Hekma megaproject in Egypt.
According to the statement, Modon Holding will undertake the developer role for the first phase of the envisaged city consisting of 50 million sqm.
The remaining 120 million sqm will be developed in partnership with prominent developers from Egypt, the UAE, and the international community under the oversight of the recently established ADQ subsidiary Ras El Hekma Urban Development Project Company and Modon Holding.
In February 2024, UAE and Egypt had signed a $35 billion investment partnershp deal for the Ras El-Hekma megaproject.
The initial phases will priorities the establishment of tourism infrastructure, including an international airport and high-speed rail connectivity, aiming to attract 400 million outbound tourists within a four-hour flight radius.
The master plan includes residential areas, office spaces, hospitality venues, retail, leisure and recreation facilities, an international marina, and a special free zone.
Additionally, Modon Holding will look to develop infrastructure to support a range of high-growth industries, including business services, financial services, light manufacturing, and technology.
Modon Holding announced in a separate statement that it has entered into initial agreements with major partners to join in the development of the Ras El Hekma megaproject.
- A framework agreement with Orascom Construction, designating them as one of the primary contractors for the initial phase of the project.
- A memorandum of understanding (MOU) with Elsewedy Electric to explore opportunities for supplying building materials and collaborating on industrial parks, manufacturing, operations, and maintenance.
- An MOU with Abu Dhabi Airports to collaborate in airport strategic planning, design, development, and operational support.
- An MOU with TAQA to explore cooperation opportunities in relation to the development, financing, and operation of greenfield utilities infrastructure projects, water desalination projects, electricity transmission and distribution projects and wastewater projects.
- An MOU with Valderrama for the development and operation of golf communities.
- An MOU with e& Egypt to facilitate the design and implementation of smart city infrastructure, including digital connectivity, fiber networks, and 5G; smart building technologies and IoT-enabled solutions for residential and commercial properties; city-wide data collection, monitoring, and analytics systems; smart utilities, encompassing automated energy management, water, and waste systems; smart transportation systems; and any other mutually agreed smart city services.
- An MOU with Candy International aims to explore luxury real estate development opportunities, leveraging Candy’s extensive international reach.
- An MOU with Montage International for the development and management of luxury hotels in Ras El Hekma.
- An MOU with Accor and Ennismore to operate hotels and resorts in Ras El Hekma.
- An MOU with Burjeel Holding to develop multi-specialty healthcare facilities, implement innovative healthcare solutions, provide medical training programmes, and collaborate on public health initiatives and community wellness programmes.
Located around 350 kilometres northwest of Cairo on the Mediterranean coast, Ras El Hekma project is expected to become a powerful economic engine, with cumulative investments anticipated to reach $110 billion by 2045, an annual GDP contribution of around $25 billion, and approximately 750,000 jobs to be created, both directly and indirectly.
By 2030 alone, around $55 billion will already be invested, with the potential to create over 100,000 jobs through construction activities and the launch of hospitality and manufacturing entities
Upon completion, the development will be home to two million people and feature more than 40km of green spines.
Read more: Egypt, UAE talks continuing over Ras El Hekma land deal
Watch: Egypt receives first batch of $35bln from UAE for Ras El-Hekma project
(Editing by Anoop Menon) (anoop.menon@lseg.com)
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