Egypt’s MIDAR, UAE’s Majid Al Futtaim sign $3.1 bln New Cairo development deal

Egypt’s MIDAR and UAE-based Majid Al Futtaim signed an agreement on Sunday to develop a mixed-use urban project in New Cairo with an initial investment value of more than $3.1 billion, the Egyptian Cabinet said.

The project will be developed within MIDAR’s MADA City in New Cairo on an area of about 553 feddans under a revenue-sharing model between the two companies, according to a Cabinet statement.

Prime Minister Moustafa Madbouly attended the signing ceremony at the Cabinet’s headquarters in the New Capital.

The project represents a partnership between Egyptian and UAE private-sector investors and would add to real estate and investment activity in the Egyptian market, the statement said.

The first phase of the project will cover 200 feddans over four years, while a second phase will expand development to a further 300 feddans. Around 60 feddans will also be allocated for a retail and entertainment destination, to be developed in stages based on occupancy rates and construction progress.

The project’s total development value is expected to exceed $4 billion and will include around 6,000 residential units in addition to business, commercial, entertainment, and hotel facilities.

MIDAR Chief Executive Ayman Elkousey said the company expected returns of more than 40 billion Egyptian pounds from the partnership.

Majid Al Futtaim Holding Chief Executive Ahmed Galal Ismail said the deal marked the company’s first integrated mixed-use residential development in MADA City and builds on nearly $2.8 billion invested by the group in Egypt over the past 27 years.

Majid Al Futtaim is one of Egypt’s largest foreign investors, with projects including Mall of Egypt, City Centre Almaza, City Centre Alexandria, and City Centre Maadi.

Attribution: Amwal Al Ghad English