Orascom Construction, an Egyptian-based company, has cemented its role as a chief contractor for the monumental first phase of the New Ras el-Hekma project, a grand-scale development on the Mediterranean shores of Egypt.
This move follows a major agreement between Egypt’s New Urban Communities Authority and Abu Dhabi’s sovereign wealth fund, the Abu Dhabi Developmental Holding Company (ADQ), with a striking investment totaling $35 billion. This colossal deal grants ADQ the authority to develop 170 million square meters of land, marking what is being hailed as Egypt’s largest-ever foreign investment.
Just recently, on October 4th, ADQ entrusted Modon Holding with the mantle of master developer for this transformative megaproject, located 350 kilometers north of Cairo.
Modon Holding, bearing the full weight of the master development responsibilities, will spearhead the project’s entirety, while also handling direct oversight for the initial phase. This inaugural segment is anticipated to span an impressive 50 million square meters of development.
Under a pivotal framework agreement, Orascom Construction will take the helm as one of the primary contractors for this first phase. In addition, a memorandum of understanding has been forged with Elsewedy Electric to explore synergistic opportunities, from the supply of vital construction materials to the development of industrial parks and future manufacturing facilities, as well as operations and maintenance initiatives.
Furthermore, Abu Dhabi Airports is poised to engage in strategic airport planning, design, and operational support through further memoranda of understanding, while Abu Dhabi’s national energy giant, TAQA, is set to investigate collaborative prospects in the realm of greenfield utilities, water desalination systems, and electricity distribution infrastructure.
As for the remaining 120 million square meters, this vast expanse will be developed in collaboration with both UAE-based and international development partners.
Modon Holding has projected that the cumulative investment in the Ras el-Hekma endeavor may surge to $110 billion by the year 2045. This groundbreaking project aims to serve as a home for up to two million residents and foster the creation of around 750,000 employment opportunities.
Bill O’Regan, CEO of Modon Holding, described the Ras el-Hekma project as a “bold and intricate initiative” that will have profound economic reverberations for Egypt. He added, “To actualize a development of such magnitude, spanning multiple stages of planning, design, and execution, demands industry-specific expertise and strategic alliances across an array of sectors.” O’Regan emphasized that it is only through these robust partnerships that the vision of this landmark destination will be fully realized.