Image credit: MOHAMED EL-SHAHED/ Getty Images
Abu Dhabi-based sovereign fund ADQ appointed IHC’s Modon Holding as the master developer of a vast project to develop a city at Ras El Hekma on Egypt’s north coast.
Modon said in a bourse filing that it will lead the development of the envisaged city’s first phase, which will consist of 50 million square meters. The Abu Dhabi-listed property developer will partner with Egyptian, UAE, and international developers to develop the remaining 120 million square meters of the Ras El Hekma city masterplan.
The ADQ subsidiary Ras El Hekma Urban Development Project Company and Modon Holding will oversee this partnership.
The company signed a framework agreement with Egypt’s Orascom Construction, designating them as one of the primary contractors for the project’s initial construction phase. Modon also signed a series of memoranda of understanding for potential partnerships on the mega-project, including with Egypt’s Elsewedy Electric, Abu Dhabi Airports and Abu Dhabi energy firm, also known as TAQA.
“The Ras El Hekma destination is one of the group’s most significant investment and development projects outside the UAE,” said Bill O’Regan, group CEO of Modon Holding. “The project provides an incredible development pipeline, and Modon looks forward to delivering a destination that will be an exceptional experience for visitors and residents alike.”
The Ras El Hekma project is expected to drive significant economic growth, attracting $110bn in investment by 2045. It will contribute roughly $25bn annually to GDP and create approximately 750,000 jobs, both directly and indirectly.
Ras El Hekma, with its 44 km waterfront, is conveniently located within a four-hour flight for over 400 million outbound tourists. The prime location offers significant growth potential, making tourism infrastructure a key focus during the initial phase of the project.
The development is expected to be home to two million people upon completion, and it will feature more than 40 km of green spines, making it one of the greenest megaprojects in the region.
The Ras El Hekma deal was announced in February with $35bn in short-term investments, including $24bn for the land rights to the undeveloped site on the Mediterranean coast.
