UAE-based Al-Habtoor Group has submitted a proposal for a potential major mixed-use development in Egypt’s new Capital City development, according to a company statement.

In an interview with Saudi Arabia’s Al-Arabiya news channel, company chairman Khalid al-Habtoor said: “[Al-Habtoor Group] has been studying the idea for some time. Egypt is ready for an investment of this scale.”

The development is set to be built on 800,000 square metres of land in the newly proposed Capital City scheme east of Cairo.

The development will be made up of three five-star hotels, three luxury residential towers, six mid-rise residential blocks, 204 high-end villas, a school, and a shopping mall, as well as a polo club and golf course, according to a company statement.

The shopping centre will have 290,000 square metres of retail space.

Al-Habtoor Group refused to comment on the cost and financing structure of the scheme, although local reports have suggested the project will cost up to $8.5bn.

Egypt launched the new Capital City project during the Egypt Economic Development Conference in Sharm el-Sheikh in March 2015. In September that year, a memorandum of understanding (MoU) was signed with China State Construction Engineering Corporation to participate in developing parts of the new administrative capital.

The agreement was signed in order for the Chinese firm to explore development opportunities in the Capital City project.

The government says work has started on all utility and infrastructure work for the new capital city area.

The new city is expected to have a population of 5 million people and create 1.7 million jobs. It will be built 45 kilometres east of Cairo and 80km from Suez.