Egypt anticipates economic recovery in largest investment project "Ras Al-Hekma"

By Islam Abdulfattah CAIRO, March 12 (KUNA) -- Egypt's USD 35 billion deal with the UAE to develop Ras Al-Hekma city is a significant push for Egypt's economy and the biggest deal in the country's history, aiming to attract investments.
The deal, signed on February 23 between Egypt's New Urban Communities Authority and Abu Dhabi Developments Holding Company (ADQ), came in time where the country was suffering the impact of the dollar exchange rate.
Experts are optimistic about the deal as there are some positive signs of economic recovery, including achieving monetary stability, stable exchange rate, controlling inflation, reducing foreign debt, attracting foreign investment, create thousands of job opportunities and developing the tourism sector in the country.
In a statement to KUNA, spokesperson for the Egyptian Cabinet Mohamed Al-Homsani said that executing the project would be done through establishing a company under the name Ras Al-Hekma, which will follow the Egyptian rules and regulations.
Ras Al-Hekma project, stretching over 170.8 million square meters will include residential areas, hotels, resorts and an international marina for yachts and tourist cruises, said Al-Homsani.
It will also have a finance and business quarter to attract global companies, as well as a center for logistic services and technology industries. He added that officials would also sign a separate deal to build an airport close to the coastal city.
On his part, former president of Egypt Financial Supervisory Authority Sherif Samy said the direct impact of the deal is pumping hard currencies, especially the dollar into the economy, while the medium to long term impact is boosting tourism and enhancing performance of different sectors related to the project.
As for the effect of the deal on the currency black market, Samy said that there was no specific deal that could completely tackle the issue; however, it will allow the Central Bank of Egypt to provide US dollar credit to end waiting lists, which is a step to fight non-official dollar exchange rate.
Meanwhile, economic expert Medhat Nafie said that improving the availability and exchange rate of the US Dollar would regain the trust of the International Monetary Fund (IMF) and the World Bank in the Egyptian market.
He added that the deal with gradually end the black market currency exchange, noting that achieving sustainability in economy requires further action including system reform. (end) asm.ag