May 16, 2020

Rebuilding Egypt: Emaar Properties to Help Construct New Capital City

Major Projects
Major Projects
Admin
1 min
Rebuilding Egypt: Emaar Properties to Help Construct New Capital City
UAE flagship builder Emaar Properties will play a leading role in the construction of a brand new capital city in Egypt.The countrys Prime Minister Ibra...

UAE flagship builder Emaar Properties will play a leading role in the construction of a brand new capital city in Egypt.

The country’s Prime Minister Ibrahim Mehleb said the Dubai-based company would be involved at a press conference this week, although exact details of such participation has not been announced.

This follows the news that Emaar will submit plans to float its Egyptian subsidiary with an initial sale of shares earmarked for Q2, while the UAE, Kuwait and Saudi Arabia are said to be depositing $10 billion into the country before an investment conference next month.

The event will be an important catalyst for investment into Egypt, which has suffered from political and economic instability since the army successfully ousted President Mohamed Mursi in 2013.

According to news agency WAM, Mehleb said “Egyptian people will never forget the firm stand the UAE took in their support”.

So far Saudi Arabia, Kuwait and the UAE have given Egypt more than $12 billion in aid, deposits for the central bank and petroleum products since the Arab Spring uprisings triggered in 2011. 

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Jun 16, 2021

France to invest €1.8bn in Egypt’s infrastructure

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Infrastructure
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2 min
France is making a €1.8bn investment into Egypt’s infrastructure with upgrades to the Cairo Metro and a railway to Sudan

France will invest a total of €1.8bn into Egypt’s infrastructure focusing specifically on upgrading the Cairo Metro, building a railway to Sudan, and developing water and energy schemes. Officials have called the investment a “major boost to bilateral cooperation”. 

The Cairo Metro

Included in the financing is a concessional government loan of around €800mn to upgrade Line 1 of the Cairo Metro, introduced in the 1980s. The financing will pay for 55 trainsets for the line and is provided by the French engineering company, Alstom.  

Line 6 is also due to be upgraded using further state-guaranteed loans worth up to €2bn. Bruno Le Maire said that this would be negotiated over the next six months. France and Egypt have worked in close cooperation ever since Abdel Fattah al-Sisi became president in 2014, despite differences over human rights and strong criticism of Egypt by rights activists and some foreign states.

Nine more projects over the next half a decade

A further €1bn from France’s development agency, Agence Française de Développement (AFD), aims to cover a range of other projects over the next half a decade. 

These projects include a railway line between Aswan, southern Egypt, and Wadi Halfa in Sudan, as well as several projects in the renewable energy and water purification industries. Bruno Le Maire, France’s Finance Minister, said Egypt was a “strategic partner and commercial dealings with it would be developed. France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans,” he said.

According to Le Maire, the AFD will also €150mn to support the construction of a universal health insurance programme. French contractors such as Vinci and Bouygues have a long history of working on the Egyptian capital’s underground system. 

Talking about the relationship between France And Egypt, Le Maire concluded: “France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans”. 

Image: MEED

 

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