Authorities overseeing Egypt's New Administrative Capital have carved out a portion of the underdeveloped Downtown district to establish a new financial and business neighborhood, a source at the Administrative Capital Co. for Urban Development (ACUD) said.
The decision follows persistent delays in the completion and operation of infrastructure and services in the Downtown zone, prompting planners to reallocate part of the area for immediate redevelopment.
“These plots are still under the company’s control and will be subdivided into commercial and administrative lots ranging between 2,000 and 5,000 square meters,” the source told Al Manassa, adding that the company is preparing 50 plots for release in August.
This move follows the rapid sell-out of the original Financial and Business District, driven by robust demand from real estate developers and investors. Its appeal was particularly amplified by its proximity to the Government District—currently the capital's only fully operational zone, bustling with thousands of daily public sector employees.
In June, ACUD Chairman Khaled Abbas unveiled a new land allocation policy favoring investors who pay in US dollars when multiple bidders compete for the same plot.
“Private companies are increasingly seeking offices near government hubs, which boosts the salability of administrative units,” the source added.
He stressed that the downtown area faces significant delays in completing services and projects and bringing them into full operation. This setback is compounded by some companies postponing their project implementation, largely due to challenging economic conditions, including high inflation rates and repeated exchange rate liberalizations.
The Financial and Business District, located on 320 feddans (about 1.34 square km), includes the Central Bank of Egypt, the Egyptian Exchange, and around 20 mostly state-owned banks. All its 106 land plots have already been sold.
This district is separate from the Central Business District, which comprises 20 towers including the Iconic Tower, built by China's CSCEC and funded by a $3 billion Chinese loan.
In October 2024, Abbas explained that the New Capital will require an annual budget of 5–6 billion Egyptian pounds (approximately $101–$121 million) for maintenance once fully operational.
