Cairo // As local and international delegates prepare for the much-anticipated Egypt Economic Development Conference (EEDC) in Sharm El Sheikh this weekend, executives from the UAE’s biggest publicly traded builder and the Egyptian government have been locked in discussions over one of the North African country’s most ambitious projects .
Their enormous housing development proposal, originally intended to be for low-income Egyptian citizens and led by the UAE’s Arabtec and the Cairo authorities, is finding it difficult to get off the drawing board – a year after the deal was signed – and it is hoped the conference, dubbed Egypt The Future, will mark a turning point.
The original US$40 billion campaign to provide a million low-cost homes, entitled “For the Sake of Egypt’s Youth”, was initiated last March by the Dubai-listed firm and then field marshal Abdel Fattah El Sisi in the lead up to Egypt’s presidential elections.
The deal, widely seen as a symbol of this country’s commitment to Cairo’s military-backed government, came as UAE aid flowed into Egypt following the ousting of the president Mohammed Morsi.
But what was hailed early on as one of the region’s most ambitious housing projects has been hampered by issues including confusion over funding sources.
The most recent road bump came after the head of the armed forces eengineering corps, general Kamel El-Wazir, seemed to blame Arabtec for the project’s current temporary suspension by not agreeing to certain “national conditions”.
Last week, he was quoted by an Egyptian newspaper as saying, “[Arabtec] wanted to invest in Egypt, but its approach does not match ours … any investor who wants to enter into the Egyptian market must bring his own funding from abroad, not from Egyptian banks”.
Shortly afterwards, on Wednesday, Arabtec’s chairman, Khadem Abdulla Al Qubaisi, and a delegation of board members flew to Egypt to try to clarify the situation. Arabtec has declined to comment on Gen El Wazir’s statement until after the misunderstanding has been sorted out.
This latest hitch comes amid a string of complications surrounding the planning of the mega-project that have stalled progress on the development.
Initially scheduled to begin in the third quarter of last year, the first phase includes the construction of 120,000 low-cost housing units along with public services such as schools and hospitals in three Egyptian locations: El Obour; New Minya; and Badr City.
According to the original agreement all one million units are to be completed within five years, with the first homes delivered as early as 2017.
However, a year on from the announcement of the “historical deal”, many of the original drivers of the project are no longer in the picture.
Concerns over the project first arose after the Arabtec chief executive Hassan Ismaik, a close partner to Mr El Sisi in the initial concept, unexpectedly resigned in June – sending the company’s share price crashing.
Meanwhile, the Egyptian armed forces, which instigated the original proposal and said it would provide 160 million square metres of free land for the project, subsequently passed the baton to the ministry of housing.
Since then, the project’s start date has been missed on several occasions. In October, Arabtec said it was in the final stages of formulating a contract with the Egyptian ministry of housing, with phase one of the project to begin before the end of 2014.
After that failed to materialise, a new date was set for early 2015 following the International Real Estate and Investment Show in Abu Dhabi in November. Then, after Mr El Sisi’s visit to Abu Dhabi in January, the UAE Minister of State, Sultan Al Jaber, announced the project would commence within a month’s time.
The project is now expected to be presented at the EEDC, which runs from March 13 to 15 in the Red Sea resort. According to an official from the Egyptian Federation of Construction and Building Contractors, phase one will begin shortly thereafter.
As well as funding, other details regarding the project, such as the provision of land, remain unclear. While it was originally announced that Arabtec would receive free land from the armed forces for low-income housing, the Egyptian minister of housing Moustafa Madbouly stated on Wednesday last week that in fact the project is now intended for the middle-income sector and thus does not warrant the allocation of free land to investors.
A day later, he said talks with Arabtec were continuing and he hoped to reach a final deal on the project before the start of the EEDC.
Hany Ganeena, the head of research at one of Egypt’s leading investment firms, Pharos, notes: “All of the major recent disputes over real estate projects have been over the pricing of land.”
The two largest property developers in Egypt as listed on the EGX, Talaat Moustafa Group and Palm Hills, have also both faced drawn-out disputes over land sales following the January 25 Revolution in 2011.
“In the Arabtec case, the minister of housing wanted to make clear that he was keen on attracting investment, but not keen on ‘squandering’ property of the Egyptian people,” points out Mr Ganeena.
Source of funding has been another point of contention in the most recent negotiations between Arabtec and the company’s Egyptian partners.
Shortly after the original agreement, Mr Ismaik said initial financing would come from the UAE Government alongside advance payments by homebuyers. Then, after negotiations in October last year, a letter of intent signed by Arabtec and Egypt’s ministry of housing stipulated that the project’s funding be entirely foreign, although it did not provide further details.
Other important considerations, such as affordability of the units, also remain in question. Many Egyptians most in need of subsidised housing operate in the informal economy and will not be eligible for traditional forms of financing such as mortgages; neither could they afford to buy outright.
“The announced budget of 280 billion Egyptian pounds [for the project] averages to about 280,000 pounds a unit, which is more than double the price of the current subsidised units in the Egyptian government’s social housing project, which are already unaffordable for the poorest 20 per cent of Egyptians,” says the housing policy analyst Yahia Shawkat .
Additional doubts surround the feasibility of the project’s ambitious scope. Quick maths reveals that for one million units to be completed from start to finish in five years, about 550 houses must be built per day.
Considerations such as these suggest the importance of the project may lie more in its symbolic value of UAE-Egypt relations than its impact on the Egyptian affordable housing market. At the Abu Dhabi investment conference in November, Mr Madbouly noted the project was expected to mark a new investment approach by the current government.
He said the Arabtec collaboration would serve as “a model for future public-private partnerships”, suggesting government desire to foster strong and growing connections with Arabian Gulf firms in Egypt’s upcoming property development projects.
Indeed, with the Abu Dhabi Government-affiliated Aabar Investments as Arabtec’s largest shareholder, the million units deal has been widely interpreted as a form of state-to-state economic diplomacy.
It also suggests a new UAE strategy to promote private sector development as an alternative to direct aid.
Following a $1bn grant transferred in the immediate aftermath of Mr Morsi’s ousting in July 2013, the UAE signed an aid agreement of an additional $3.9bn in October of that year, which included a number of Emirates-led development projects such as the construction of schools, clinics and housing.
Unless an announcement is forthcoming beforehand, all eyes will be on the EEDC for signs that the million-homes project is making headway. However, many other UAE private sector investments are expected to be announced at the event, in which high-level Emirati and Saudi officials have played a considerable planning role.
A series of investor-friendly economic and legislative reforms are also scheduled to be revealed at the conference, opening the door to a potential period of increased UAE private investment in an Egypt in transition.
But the biggest deal will still be the Arabtec project and the outcome of the latest talks is likely to set the tone for future UAE-Egypt collaboration on economic projects, with repercussions far beyond the Egyptian housing sector.
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Killing of Qassem Suleimani
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Sweet%20Tooth
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THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
More on Quran memorisation:
The five pillars of Islam
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
ABU%20DHABI%20CARD
%3Cp%3E%0D%3Cstrong%3E5pm%3A%3C%2Fstrong%3E%20Al%20Rabi%20Tower%20%E2%80%93%20Maiden%20(PA)%20Dh80%2C000%20(Turf)%201%2C400%0D%3Cbr%3E%3Cstrong%3E5.30pm%3A%3C%2Fstrong%3E%20Wathba%20Stallions%20Cup%20%E2%80%93%20Handicap%20(PA)%20Dh70%2C000%20(T)%201%2C600m%0D%3Cbr%3E%3Cstrong%3E6pm%3A%3C%2Fstrong%3E%20Abu%20Dhabi%20Championship%20%E2%80%93%20Listed%20(PA)%20Dh180%2C000%20(T)%201%2C600m%0D%3Cbr%3E%3Cstrong%3E6.30pm%3A%3C%2Fstrong%3E%20Hili%20Tower%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(T)%202%2C200m%0D%3Cbr%3E%3Cstrong%3E7pm%3A%20%3C%2Fstrong%3EUAE%20Arabian%20Derby%20%E2%80%93%20Prestige%20(PA)%20Dh150%2C000%20(T)%202%2C200m%0D%3Cbr%3E%3Cstrong%3E7.30pm%3A%3C%2Fstrong%3E%20Abu%20Dhabi%20Championship%20%E2%80%93%20Listed%20(TB)%20Dh380%2C000%20(T)%202%2C200m%3C%2Fp%3E%0A
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
LA LIGA FIXTURES
Friday (UAE kick-off times)
Levante v Real Mallorca (12am)
Leganes v Barcelona (4pm)
Real Betis v Valencia (7pm)
Granada v Atletico Madrid (9.30pm)
Sunday
Real Madrid v Real Sociedad (12am)
Espanyol v Getafe (3pm)
Osasuna v Athletic Bilbao (5pm)
Eibar v Alaves (7pm)
Villarreal v Celta Vigo (9.30pm)
Monday
Real Valladolid v Sevilla (12am)
Founders: Ines Mena, Claudia Ribas, Simona Agolini, Nourhan Hassan and Therese Hundt
Date started: January 2017, app launched November 2017
Based: Dubai, UAE
Sector: Private/Retail/Leisure
Number of Employees: 18 employees, including full-time and flexible workers
Funding stage and size: Seed round completed Q4 2019 - $1m raised
Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels
UAE currency: the story behind the money in your pockets
Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
RIDE%20ON
%3Cp%3EDirector%3A%20Larry%20Yang%3C%2Fp%3E%0A%3Cp%3EStars%3A%20Jackie%20Chan%2C%20Liu%20Haocun%2C%20Kevin%20Guo%3C%2Fp%3E%0A%3Cp%3ERating%3A%202%2F5%3C%2Fp%3E%0A
US%20federal%20gun%20reform%20since%20Sandy%20Hook
%3Cp%3E-%20April%2017%2C%202013%3A%20A%20bipartisan-drafted%20bill%20to%20expand%20background%20checks%20and%20ban%20assault%20weapons%20fails%20in%20the%20Senate.%3C%2Fp%3E%0A%3Cp%3E-%20July%202015%3A%20Bill%20to%20require%20background%20checks%20for%20all%20gun%20sales%20is%20introduced%20in%20House%20of%20Representatives.%20It%20is%20not%20brought%20to%20a%20vote.%3C%2Fp%3E%0A%3Cp%3E-%20June%2012%2C%202016%3A%20Orlando%20shooting.%20Barack%20Obama%20calls%20on%20Congress%20to%20renew%20law%20prohibiting%20sale%20of%20assault-style%20weapons%20and%20high-capacity%20magazines.%3C%2Fp%3E%0A%3Cp%3E-%20October%201%2C%202017%3A%20Las%20Vegas%20shooting.%20US%20lawmakers%20call%20for%20banning%20bump-fire%20stocks%2C%20and%20some%20renew%20call%20for%20assault%20weapons%20ban.%3C%2Fp%3E%0A%3Cp%3E-%20February%2014%2C%202018%3A%20Seventeen%20pupils%20are%20killed%20and%2017%20are%20wounded%20during%20a%20mass%20shooting%20in%20Parkland%2C%20Florida.%3C%2Fp%3E%0A%3Cp%3E-%20December%2018%2C%202018%3A%20Donald%20Trump%20announces%20a%20ban%20on%20bump-fire%20stocks.%3C%2Fp%3E%0A%3Cp%3E-%20August%202019%3A%20US%20House%20passes%20law%20expanding%20background%20checks.%20It%20is%20not%20brought%20to%20a%20vote%20in%20the%20Senate.%3C%2Fp%3E%0A%3Cp%3E-%20April%2011%2C%202022%3A%20Joe%20Biden%20announces%20measures%20to%20crack%20down%20on%20hard-to-trace%20'ghost%20guns'.%3C%2Fp%3E%0A%3Cp%3E-%20May%2024%2C%202022%3A%20Nineteen%20children%20and%20two%20teachers%20are%20killed%20at%20an%20elementary%20school%20in%20Uvalde%2C%20Texas.%3C%2Fp%3E%0A%3Cp%3E-%20June%2025%2C%202022%3A%20Joe%20Biden%20signs%20into%20law%20the%20first%20federal%20gun-control%20bill%20in%20decades.%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
City's slump
L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
L - Sporting, 4-1
L - Bournemouth, 2-1
L - Tottenham, 2-1
hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66