Expansion of Cooperation Between Egypt and the UAE; Egypt Entrusts Coastal Development to the UAE in a $35 Billion Deal

On Friday, Egypt entered into a $35 billion agreement aimed at attracting foreign investment and alleviating its economic crisis by entrusting its coastal development to the United Arab Emirates. According to the official UAE news agency, under this agreement, the 'Abu Dhabi Sovereign Wealth Fund' will invest $35 billion in Egypt, with $24 billion allocated for the development of the 'Ras al-Hikma' coastal area west of Alexandria, and $11 billion designated for other projects in Egypt. Egyptian Prime Minister Mustafa Madbouly stated that these projects will include the development of residential areas, the construction of hotels, resorts, and coastal recreational facilities. Madbouly noted that the $35 billion investment from the UAE, which is set to be implemented within two months, represents the largest foreign direct investment in Egypt's history. Egypt is grappling with a shortage of capital and foreign currency due to a decline in tourist numbers following the COVID-19 pandemic and rising commodity prices after Russia's invasion of Ukraine. Additionally, a significant reduction in trade volume through the Suez Canal due to Houthi attacks on ships in the Red Sea has further harmed the economy of this North African country. The Egyptian Ministry of Tourism announced in April that Cairo has resolved its disputes with Qatar and is re-establishing relations with Turkey, aiming to revive its tourism industry by easing visa issuance for regional tourists. Several explosions have occurred along the shipping route in the Red Sea near the shores of Yemen, and hundreds of mummified ram heads have been discovered in Egypt, with ancient tombs in 'Saqqara' being showcased.