Ras El-Hekma’s flagship development, one of Egypt’s largest foreign investment deals, has made little construction progress months after land handover, raising questions over project timelines.
Building activity on the first phase of the $35 billion Ras El-Hekma coastal megaproject has reached just 5% over the past three months, according to a source familiar with the matter.
The United Arab Emirates’ Modon Holding, which signed the high-profile agreement in February, has received a major portion of the 8.5 million square meters allocated for phase one. Yet execution remains sluggish, the source told Al Manassa, asking not to be named as the information is private.
So far, work has included a global-branded hotel and a mix of residential and commercial structures. Construction is expected to pick up in the coming two months, the source added, as Modon gears up to launch unit sales by the end of 2025.
Prime Minister Mostafa Madbouly unveiled the deal earlier this year, touting it as Egypt’s largest-ever foreign direct investment agreement. The government aims to capture 35% of the profits over the project’s lifespan, with phase-one sales alone projected to reach 300 billion Egyptian pounds, according to Saudi-owned Al Arabiya.
In May, cabinet spokesperson Mohamed Elhomsany said the Egyptian side had begun handing over plots and that Emirati developers had started initial construction work.
But momentum has been slower than anticipated. A board member of Egypt’s Real Estate Development Chamber warned that the current pace could stretch completion of the first phase to five years, well beyond the timeline required for a 2025 sales launch.
“The project’s scale presents serious challenges in terms of infrastructure and logistics,” he told Al Manassa, noting that the area’s transformation surpasses other North Coast ventures in complexity.
In October 2024, Modon signed cooperation agreements with several Egyptian partners, including Orascom Construction, TAQA Arabia, and e& Egypt, to build smart infrastructure and prepare the site for development.
