• Egypt wants more foreign investment for housing project
  • Development expected to be finalised during investment conference

UAE’s Arabtec Holding is being told by Egyptian officials the conditions of the one million-home project may be breached if funds are raised through Egyptian banks.

When the project was announced in March 2014, MEED reported that the development was likely to mostly be funded by Egyptian and foreign banks, but now the head of the armed forces Engineering Corporation, General Kamel el-Wazir says the initial conditions of the deal were that the UAE company would fund the project through “money coming from abroad, not from Egyptian banks.”

The initial project agreement was to involve Arabtec Holding’s subsidiaries developing and constructing 1 million housing units in 13 locations across Egypt. The overall development value is expected to be £E280bn ($40bn).

Similar situations have been seen in North Africa and Syria, where foreign developers fell out with local authorities after pursuing finance packages through local institutions rather than bringing in funds from abroad in order to boost foreign direct investment.

A final agreement to kick start work is expected to be signed during the investment conference starting on 13 March.

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