Egyptian minister touts Ras El Hekma as blueprint for global deals

• ADQ package unlocked more funds
• UAE deposits converted to investment
• Interest in Egypt from Qatar and Kuwait

Egypt’s Ras El Hekma deal with the United Arab Emirates shows how creditor and debtor countries around the world can work together for mutual benefit, the Egyptian minister of planning has said.

It may also lead to similar agreements with other Gulf nations, according to Rania Al Mashat.

“What Ras El Hekma has done is create a global example for how countries can bilaterally negotiate that swap,” the minister said during a discussion hosted by the Atlantic Council think tank at the IMF Spring Meetings in Washington. 

Asked whether Qatar and Kuwait may make similar plays soon, she replied: “This is something that other countries might follow suit as well.”

• Modon to build industrial zone near Egypt’s Ras El Hekma
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• Red Sea giga-project launches new island despite PIF budget cuts

In February last year Egypt and sovereign wealth fund ADQ announced a $35 billion package to develop the Ras El Hekma peninsula on the Mediterranean coast into a tourism, residential and commercial hub. The announcement catalysed funding from the IMF and the European Union.

The deal also involved the conversion of $11 billion in UAE deposits in Egypt into investments in prime projects across the country.

Qatar and Kuwait have been linked to a combined $11.5 billion investment in Egypt, including through conversions of deposits they hold at the Egyptian Central Bank.

Saudi investors have also been linked with a scheme to develop Ras Gamila, an 860,000-sq-m area just north of the resort city of Sharm El Sheikh on the Red Sea. 

The area lies just across from the Saudi islands of Tiran and Sanafir and the Neom giga-project on the Saudi coast.