Abu Dhabi-based sovereign fund, ADQ, has appointed Modon Holding, a prominent developer from the UAE, as the master developer for an extensive city project at Ras El Hekma on Egypt’s northern coast. This announcement was made by Modon in a statement on Friday.
Modon Holding is a subsidiary of ADQ and Abu Dhabi’s International Holding Company (IHC), both of which are the majority shareholders. The Ras El Hekma project was initially unveiled in February, with plans involving $35 billion in short-term investments, including $24 billion allocated for the land rights of the undeveloped site along the Mediterranean coast.
This initiative represents a vital financial boost for Egypt, which has been grappling with persistent foreign currency shortages exacerbated by reduced Suez Canal revenues due to attacks on shipping in the Red Sea by Yemen’s Houthis.
Modon has also announced the signing of a framework agreement with Egypt’s Orascom Construction, which has been designated as one of the primary contractors for the project’s initial construction phase. Additionally, several Memoranda of Understanding have been established for potential collaborations on the mega-project, involving partners such as Egypt’s Elsewedy Electric, Abu Dhabi Airports, and the Abu Dhabi energy company, TAQA.
Interestingly, the statement did not mention Egypt’s Talaat Moustafa Group (TMG), which had previously expressed its intention to participate in the development of Ras El Hekma.
Located 200 km (124 miles) west of Alexandria, Ras El Hekma is in proximity to a region renowned for its luxurious summer resorts and pristine white sand beaches, favoured by affluent Egyptians.
ADQ has stated that construction of the “next-generation city,” covering an area of 170 square kilometres—nearly one-fifth the size of Abu Dhabi city—is set to commence next year.