Timeline of the Project
In 2015, discussions began about the Egyptian government’s move to establish a developmental project in Matrouh Governorate, including talks about the potential displacement of residents from Ras Hekma and neighboring villages along a 50 km stretch of the coastline. The Governor of Matrouh denied these claims, swearing that no citizens would be harmed or displaced, and that the development plan and the area to be listed on the global stock exchange would be outside residential areas. In a previous statement, the Governor of Matrouh also confirmed that the residents would not be displaced, and that the 1975 land allocation decision for the Tourism Development Authority did not include any boundaries for the villages of Ras Hekma, Al-Qawasim, Al-Dakhla, and their outskirts. However, a year later, the governorate announced the disbursement of 10 million Egyptian pounds to 40 families from Ras Hekma as compensation for their land, raising questions about the contradictory official statements and the government’s backtracking on promises made to citizens.
On August 8, 2018, the United Nations Human Settlements Programme (UN-Habitat), the General Organization for Urban Planning, and the New Urban Communities Authority signed a contribution agreement, announcing the launch of the New Ras Hekma City Project in Egypt. The new waterfront area spans approximately 55,000 acres, located on the northern coast of Egypt, between two major cities: 85 km west of Marsa Matrouh and 138 km east of New Alamein City.
On December 30, 2018, the New Ras Hekma City planning project was launched, setting out its foundational design principles. This was followed by the first meeting with the winning international consortium, including the British company CallisonRTKL and the Egyptian firm Distance Studio Consultants. UN-Habitat supported the efforts of Egypt’s Ministry of Housing, represented by the General Organization for Urban Planning and the New Urban Communities Authority, in achieving sustainable development and the development of fourth-generation cities, ensuring the use of available natural resources and identifying necessary funding resources for implementation.
On June 22, 2020, a presidential decree was issued (No. 361) reallocating land plots on the northwest coast, totaling about 707,234.5 acres, to the New Urban Communities Authority for the establishment of new urban communities. The second article of the decree also retained the military’s ownership of land within certain defined boundaries.
On July 6, 2021, it was announced that investments in the “Naya Bay” project in Ras Hekma had reached 7 billion Egyptian pounds.
Abu Dhabi Government Acquires the Ras Hekma Project
On Saturday, February 10, 2024, Mohamed Al-Homsani, the official spokesman for the Egyptian Cabinet, announced in a phone interview that a legal and technical committee had been formed within the Cabinet to study investment offers for key projects. This committee’s role is to review offers expected to bring significant foreign currency resources, as part of efforts to attract direct foreign investment. He mentioned ongoing negotiations with investors, with all details to be announced soon.
On Friday, February 23, 2024, the Egyptian government announced the establishment of a major urban project in Ras Hekma, Matrouh Governorate, with a hefty cost of 35 billion dollars, with projected investments during the project period reaching 150 billion dollars. The project will be a joint Emirati-Egyptian venture, with the Abu Dhabi Holding Company representing the UAE and the New Urban Communities Authority representing Egypt. The Egyptian government regarded this deal as the largest direct foreign investment in Egypt’s history, aligning with the country’s investment laws.
The Abu Dhabi Holding Company officially announced its acquisition of the development rights for the Ras Hekma project for 24 billion dollars, expecting the project to attract investments worth over 150 billion dollars. The company plans to invest 11 billion dollars in real estate and other major projects in Egypt, in addition to the Ras Hekma development. Work is expected to begin in early 2025, with the Egyptian government retaining a 35% stake in the project. The project is seen as a pivotal step toward establishing Ras Hekma as a leading holiday destination on the Mediterranean, with world-class infrastructure to support economic and tourism growth in Egypt.
The total area of Ras Hekma spans approximately 55,000 acres, equivalent to 231 million square meters. The Prime Minister, Mostafa Madbouly, confirmed that Abu Dhabi Holding Company acquired nearly 170 million square meters, representing the largest portion of Ras Hekma land, which is roughly the triangular area with two sides facing the Mediterranean Sea. The Emirati company plans to establish a company under the name “Ras Hekma,” with work set to begin in early 2025.
Egypt’s National Urban Development Strategy 2052
The National Urban Development Strategy, created in 2014 by the General Organization for Urban Planning, includes three phases ending in 2052. The project aims to position Egypt as a globally competitive, advanced nation with a knowledge-based economy that invests in human resources, place-based potential, and resources. It envisions a balanced society, rooted in national identity, cultural heritage, and values, where citizens enjoy quality living within an integrated environmental system, fostering sustainable development and active community participation.
According to the Prime Minister, the 2052 strategy includes developing Matrouh Governorate and the border city of Salloum. The project includes the establishment of four new cities on the northwest coast: Ras Hekma, Nageila, Sidi Barrani, and Gergoub. These new cities will house millions of residents, providing a quality lifestyle for Egyptians and creating millions of job opportunities.
Abu Dhabi Developmental Holding Company
Founded in 2018 under Law No. (2), the Abu Dhabi Developmental Holding Company is a public joint-stock company. It has acquired stakes in several companies including “Tawfeer 54,” “Union Railways,” “National Health Insurance Company (Daman),” and “ZonesCorp.” In 2019, the company launched a strategic investment platform worth 20 billion dollars and committed to investing in Egypt’s economic growth.
In 2022, the company acquired stakes in five Egyptian companies for about 1.8 billion dollars: 21.5% of Abu Qir Fertilizers, 20% of Misr Fertilizers, 32% of Alexandria Container Handling, 17% of Commercial International Bank, and 12.6% of Fawry. In 2023, the company acquired additional stakes in three more Egyptian companies worth 800 million dollars, including 25% of National Drilling, 30% of Ethydco, and 35% of Egyptian Linear Alkylbenzene Production Company (Elab). In January 2024, it announced its acquisition of a 40.5% stake in the hospitality division of Talaat Moustafa Group.
The Ras Hekma Development Project’s Other Dimensions
The Ras Hekma urban development project is one of the giant developmental projects recently announced by the Egyptian government. It could potentially be the largest dollar investment in Egypt’s urban projects to date. Political and economic factors play a crucial role in shaping urban development, as seen in the Ras Hekma project. Egypt’s external debt reached 165.4 billion dollars by the first quarter of 2023, approximately 40.3% of Egypt’s GDP. In 2024, Egypt is expected to repay 20% of its external debt, amounting to 32.8 billion dollars. The UAE is Egypt’s largest Arab creditor, with a debt of 11 billion dollars, leading to the UAE company’s acquisition of a 65% share of the project, with the Egyptian government retaining 35%. Additionally, the Emirati company had previously acquired stakes in eight Egyptian companies and Talaat Moustafa Group, in exchange for relinquishing 11 billion dollars from the UAE’s deposits with Egypt’s Central Bank, contributing 24 billion dollars in two installments.
