This deal aims to establish an extensive mixed-use residential and commercial complex within Mada City, in New Cairo.
The deal, signed on Sunday in Egypt’s New Administrative Capital, was seen by Prime Minister Mostafa Madbouly and a number of top government officials, including housing, investment, and foreign affairs personnel.
The development is projected to be worth more than $3.1 billion initially, with a total value of more than $4 billion when completed.
Majid Al Futtaim will build a 2.3-square-kilometre part of Mada City under a revenue-sharing agreement.
Construction will be placed in stages, with the first stage designed to cover 840,000 square metres over four years.
It will include around 6,000 houses, office space, retail stores, hospitality amenities, and hotel rooms.
The second phase of the project will cover an additional 1.26 square kilometers and contain a large commerce and entertainment center that will be built when residential occupancy grows.
Midar, the master developer behind Mada City and Mostakbal City, estimates that the deal will produce more than 40 billion Egyptian pounds in future income.
According to Majid Al Futtaim Chief Executive Ahmed Ismail, the project is a significant step forward in the company’s residential development plan for Egypt.
He noted that the organization had spent over $2.8 billion in the nation over the last three decades, creating more than 226,000 direct and indirect jobs.
The deal adds to a growing tide of Gulf investment in Egypt.
The most visible example is the $35 billion Ras El Hekma development agreement signed in 2024 between Egypt and Abu Dhabi’s sovereign wealth fund ADQ, the country’s largest foreign investment commitment in history.
Beyond the UAE, Saudi Arabia, and Qatar have increased their investment in Egypt with multibillion-dollar investments in real estate, tourism, energy, and infrastructure projects, cementing the country’s status as a significant regional capital destination.
Source: africabusinessinsider
