Egypt Grants Land to UAE for New Airport Development in Ras al-Hekma Mediterranean Resort

The Egyptian cabinet has approved the allocation of two plots of land to the Ministry of Civil Aviation for the construction of an international airport in Marsa Matrouh province. This new airport is part of a series of projects led by the United Arab Emirates (UAE) in the picturesque Ras al-Hekma beach resort on the Mediterranean coast.

In a recent cabinet meeting, Prime Minister Mostafa Madbouly announced that the development of Ras al-Hekma airport is a key component of a deal established with the UAE in February.

In a significant multi-billion-dollar agreement, the UAE has committed to developing the airport, with Egypt set to benefit from a portion of the revenues generated.

Madbouly gave no further details on the major project.

Last month, the government took steps to allow private sector companies to run and operate the country’s airports.

Egypt and the UAE had struck a landmark investment partnership to develop the Ras al-Hekma (also al-Hikma) peninsula, located west of Alexandria.

To bolster the project, the Egyptian government has transferred 170.8 million square meters of army-owned land to the state-owned New Urban Communities Authority to construct ‘New Ras al-Hekma City’.

Amid an unforgiving economic crisis, foreign debts, and a significant budget deficit, Egypt has aggressively pursued the sale of state assets to address such challenges.

Ras al-Hekma is an up-and-coming resort destination located on a cape approximately 212 kilometres west of Alexandria and about 350 kilometres northwest of the capital, Cairo. It boasts stunning turquoise waters and white sandy beaches and has attracted significant investments in luxury developments.

The Egypt-UAE deal is set to inject US$35 billion of foreign direct investment into the struggling Egyptian economy, intended to bolster economic growth and address a hard currency crisis the country sustained for months.

The UAE’s sovereign wealth fund, ADQ, has led an investment consortium with US$24 billion earmarked for Ras al-Hekma. The remaining US$11 billion will go towards other development projects across Egypt.