UAE-based Arabtec’s $40bn project to build 1 million new homes for Egyptians will establish a model that will be used for future housing projects in the country, MEED’s Invest in Egypt conference was told.

Speaking at the event in Abu Dhabi on 27 November, Mostafa Madbouly, Egypt’s minister for housing utilities and urban communities, said feasibility studies and design for the housing programme were still under negotiation, and once completed, the model will be transferred for future schemes.

“This middle-income project is the pilot scheme for other private companies to form partnerships with other companies, and not just Arabtec,” he said.

“Our plan is that as soon as we reach an agreement with Arabtec, we will use this as a model for any other project. My main concern is for this kind of middle-income market to stabilise prices.”

Madbouly said the initial negotiations and feasibility studies had slowed down in 2014, as Arabtec replaced its CEO and board, but that discussions were now back on track.

The $40bn affordable housing scheme was announced in April as a partnership between Arabtec and the Egyptian armed forces, and is the biggest of its kind in the region.