Negotiations on the terms of the project started in 2014
- Arabtec says talks ongoing with no deadline
- Renewed terms set by Egypt still not agreed
The UAEs Arabtec Holding has released a statement on the Dubai Financial Market saying negotiations with Egypts Ministry of Housing for the 1 million homes project have not broken down.
The statement said: The company reaffirms that its still discussing some related details with concerned Egyptian parties.
A spokesperson from Arabtec has told MEED that negotiations are ongoing with no deadline set.
In March, MEED reported a disagreement between Egypt and Arabtec over financing, with the military requesting Arabtec to finance the project through foreign investments rather than funds raised through local banks.
Several sources close to the project have told MEED that while the deal is likely to go ahead, Arabtec will be expected to compromise. It is anticipated the UAE firm will accept the renewed conditions put forward by Egypt.
It is understood the military and housing ministry may want Arabtec to use only local materials for the entire project, as well as use an external auditor to monitor compliance with a new profit cap.
The Ministry of Housing refused to comment on the status of the project.
Arabtec and Egypt have been negotiating the terms of this project since 2014, when the initial memorandum of understanding was signed. The housing project would see Arabtec subsidiaries developing and constructing 1 million housing units in 13 locations across the country. The overall development value is expected to be £E280bn ($40bn).
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.