Abu Dhabi: Arabtec Holding is conducting the final feasibility studies of its long delayed housing project in Egypt, and may finalise prices in a few weeks, the Egyptian housing minister said on Thursday.
Speaking in Abu Dhabi on Thursday at MEED’s “Invest in Egypt” conference Mostafa Madbouly, Egyptian minister for Housing Utilities and Urban Communities, confirmed that a delegation from the UAE visited Egypt last week to discuss prices for the units.
“[Prices] are still under discussion. Nothing has been finalised yet, and we are still negotiating. [Arabtec] is still conducting its final feasibility studies for the project, and they promised that they will come maybe in the next couple of weeks with the final numbers, so we can start announcements,” the Egyptian minister said.
Madbouly added that the Ministry is looking at the project as an opportunity to facilitate future partnerships with private companies both locally and internationally in the real estate sector.
“Our plan is that once we reach an agreement with Arabtec, we will take the model and [apply] it to future partnerships with other companies,” he said.
The company’s housing development project in Egypt is back on track after being delayed due the change in board of directors and the chief executive officer, according to the Minister.
The project, which was set to start in the third quarter of this year, went into uncertainty after the resignation of former CEO, Hassan Ismaik in June. Rumours during then circulated that Arabtec was no longer committed to the Egyptian project.
Profitable returns
A few months later, however, Arabtec said it will commence the $40 billion (Dh147 billion) project, and confirmed that it has made progress with the Egyptian side. The company also released a statement confirming the importance of the project, which it considered strategic, bringing profitable returns.
On November 12, the real estate developer released a statement on the Dubai Financial Market website announcing that the project will commence as soon as possible after the finalisation of the planning and design stages.
“The company has conducted intensive negotiations and meetings during the past period, and it is making the maximum possible efforts, in cooperation with the Ministry of Housing and New Urban Communities Authority in Egypt, to commence the construction of phase one of the project before the end of the current year,” according to the DFM statement.
Phase one consists of 120,000 housing units across three cities. According to Arabtec, the units will form integrated cities that include public services and facilities including schools, hospitals, and places of worship.
The project, where units range between 90 and 120 square metres, aims to provide affordable housing for those with middle income, and will include a total of one million units.
