UAE-based Arabtec Holding says it is about to conclude the final agreement with the Egyptian authorities for its $40bn programme to construct one million new homes.

Phase one of the programme involves building 120,000 units in three cities – Obour, Badr and New Minia.

The affordable housing project was announced early this year as a partnership between Arabtec and the Egyptian Armed Forces, and is the biggest of its kind in the region. There has been speculation that the project has been delayed as the Egyptian government finalises the land ownership rights.

When the scheme was launched in April, Arabtec said it expected to start construction work in the third quarter of 2014. In June, Arabtec issued a notice inviting Egyptian and UAE companies looking to work on the scheme to pre-register with the company. Arabtec subsidiary Arabtec Egypt for Property Development is managing the project.

In May, Arabtec said it was interested in building a new airport at 6th of October City, and confirmed that it had the necessary support from the Egyptian leadership.