A 500 million pound ($10.6 million) investment will fund the first phase of a new residential project in East Cairo, marking the initial outlay in a $1.6 billion development by UAE and Saudi firms.
The early-stage funding, scheduled to be deployed over the coming year, will cover infrastructure works and the construction of initial buildings in Katameya, a fast-growing district in New Cairo, according to an official at Egypt’s Ministry of Housing.
The project which spreads across 380 feddans (roughly 1,600,000 square meters is being jointly developed by the UAE-based Emaar Misr, a subsidiary of Emaar Properties, and Samla for Urban Development, affiliated with Saudi Arabia’s Dallah Al Baraka Holding.
A partnership agreement between the two firms was signed on Wednesday. The developers estimate total revenues from the project could reach $2.44 billion, more than 50% above the initial investment.
The official, who requested anonymity due to the sensitivity of the matter, said the first stage of construction will focus on infrastructure and initial residential units. Regulatory approvals are pending before excavation begins, the source added.
The project is to be delivered in phases over five to seven years and will include residential, commercial and leisure components.
Mohamed Alabbar, the founder of Emaar, described the new development as “a vote of confidence in the resilience and appeal of the Egyptian market.” In a estatement, he said Emaar’s investments in Egypt have reached 1.878 trillion pounds, with a land portfolio exceeding 34.6 million square meters.
The announcement comes amid a broader push by Gulf capital into Egyptian real estate, viewed by investors as a hedge against currency devaluation and inflation.
Alabbar drew public attention earlier this year for a controversial proposal to redevelop Downtown Cairo into a tourist and investment hub akin to Dubai’s Downtown district. The project was shelved after facing strong public opposition.
In a separate high-profile deal signed in September, Emaar partnered with City Stars to launch a coastal megaproject, Marassi Red Sea, with an eye-watering price tag of 900 billion pounds.
Meanwhile, Qatar’s real estate arm, Diar, is reportedly in final talks with Egyptian authorities to co-develop a $29.7 billion urban project in the country’s North Coast.
If confirmed, the Qatari deal would rank as Egypt’s second-largest foreign real estate transaction, trailing only the $35 billion Ras El-Hekma development led by Abu Dhabi’s Modon Properties.
