Abu Dhabi-based sovereign investor ADQ has announced the signing of its largest-ever foreign direct investment (FDI) agreement with Egypt which will see the company set aside $35 billion to develop Ras El Hekma region and other prime projects in the Arab nation.

The landmark agreement between Egypt and the UAE government, represented by a private consortium led by ADQ, was sealed in the presence of UAE Ministry of Investment officials.

As per the agreement, which marks the largest FDI in the history of Egypt, ADQ will pump in $35 billion at Ras El Hekma, a coastal region located approximately 350km northwest of Cairo.

In addition to acquiring the development rights for Ras El-Hekma for $24 billion, ADQ will also convert $11 billion of deposits that will be utilized for investment in prime projects across Egypt.

Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, said: “With this signing, a new chapter begins in the the longstanding bilateral relations between our two nations. Underscored by mutual respect and trust, this investment demonstrates the UAE’s commitment to supporting the Government of Egypt in realizing the abundant potential of the local economy.”

“As a large-scale infrastructure project, the planned Ras El-Hekma development will foster widespread impact across multiple sectors, be a catalyst for job creation, and attract significant additional foreign direct investments in the years to come,” stated Alsuwadi.

According to him, the vision is to develop the region into a leading first-of-its-kind Mediterranean holiday destination, financial center and free zone spanning over 170 million sq m. It will be equipped with world-class infrastructure to strengthen Egypt’s economic and tourism growth potential,” he added.

The Egyptian government will retain a 35% stake in the Ras El-Hekma development.