• Capital city project continues to face uncertainty
  • Disputes regarding funding continue

Local media has reported a breakdown in the initial memorandum of understanding between Egypt and the UAE’s Capital City Partners.

The reports say the agreement between the two parties to develop the new capital city project has been cancelled due to a dispute over the funding of the first phase.

Earlier this month, a source close to the project told MEED that Egypt’s Housing Ministry has admitted that complications surrounding the project’s negotiation process between the ministry and the developers is slowing progress.

It is understood the complications include the Egyptian government insisting that the first phase is developed entirely through foreign funds, as well as now wanting a 24 per cent stake in the project.

The scheme is being developed by the government with a new venture founded by Eagle Hills board member and chairman of UAE’s Emaar Properties Mohamed Alabbar, called Capital City Partners.

MEED reported earlier this month that consultants are tendering for design work on the project.

The fast-track scheme is the largest in the country and the first phase is expected to cost $45bn to develop.

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