Magnom Properties, a subsidiary of Saudi industrial group Rawabi Holding, has announced its intention to commence construction on a $1 billion, 50-storey office tower in Egypt’s new capital early next year.
The tower aims to be the first of its kind to be powered by clean hydrogen. The company’s significant investment and innovative design reflect its confidence that the new capital, a city designed for over 6 million residents, will attract international clients despite being built from scratch in the desert east of Cairo.
The project is a major test of producing clean hydrogen through renewable energy, a method that has yet to be proven on a large scale. It is also part of Egypt’s efforts to establish itself as a centre for green energy in the midst of competition from neighbouring regions.
Magnom is set to commence the detailed planning for the Forbes International Tower and is aiming to have the building completed by 2030.
Land was acquired for the project in 2021 in the business district of the new capital, and land is being obtained for future sister towers planned for Dubai and Riyadh.
Among a series of mega-projects pursued by President Abdel Fattah al-Sisi, Egypt’s new capital is the most ambitious.
Infrastructural development has strained the budget, leading to increased debt and a drain on foreign currency. Under pressure from the International Monetary Fund, the government has capped public investment.
Investors see potential in Egypt’s strategic position and large workforce despite the economy being hampered by mismanagement and weak productivity, while critics argue that the new capital city does not cater to ordinary Egyptians.