An aerial view in May 2021 of the urban development at the site of the new city of New Mansoura, along Egypt's northern Mediterranean coast. AFP
An aerial view in May 2021 of the urban development at the site of the new city of New Mansoura, along Egypt's northern Mediterranean coast. AFP
An aerial view in May 2021 of the urban development at the site of the new city of New Mansoura, along Egypt's northern Mediterranean coast. AFP
An aerial view in May 2021 of the urban development at the site of the new city of New Mansoura, along Egypt's northern Mediterranean coast. AFP

Egypt inaugurates first phase of New Mansoura city


Kamal Tabikha
  • English
  • Arabic

The first phase of New Mansoura, an urban development built on a 15km stretch of Egypt’s norther Mediterranean coast, was inaugurated on Thursday by President Abdel Fattah El Sisi, along with his cabinet.

The city, announced in 2017 as part of a national strategy to construct urban centres in several of Egypt’s rural provinces, is expected to invigorate the Nile Delta’s economy, mainly through boosting tourism and offering access to higher quality education and employment opportunities for the area’s 20.6 million residents.

There are people who wonder why we are building roads and bridges instead of feeding people. If I were to do this, it would be an injustice not just for this generation but also for the next one
President Abdel Fattah El Sisi

Building new cities has been a cornerstone of Mr El Sisi's high-octane, multibillion-dollar drive to overhaul the country's infrastructure, provide affordable housing and safer roads. But the Egyptian leader on Thursday warned that the work of his government could well be in vain if the country's rapid population growth is not arrested.

Fishing boats are seen docked in front of the shoreline in Alexandria, Egypt. Reuters
Fishing boats are seen docked in front of the shoreline in Alexandria, Egypt. Reuters

“We are not trying to frighten anyone when we say that this population growth will eat up the country,” he said. “I don't think anyone can do as much as what we are doing.”

The first phase of the project, which cost 45 billion Egyptian pounds ($1.8 billion), was completed this year and consists of 19,500 housing units, 90 per cent of which will accommodate middle and low-income families, with the remainder being luxury homes.

As part of the first phase, two hotels also began operating this month in New Mansoura.

When complete, after three additional phases, the city is expected to absorb 1.5 million residents, and the first phase accounts for 40 per cent of that.

“Today we are in New Mansoura to reap one of the rewards of the New Republic plans to boost the economy,” Assem El Gazzar, the housing minister, said at the inauguration ceremony.

Mr El Gazzar said the priority for the government was to develop the area’s infrastructure to attract investors into more of Egypt’s provinces, many of which are underdeveloped following years of “government neglect”, as per Mr El Sisi's description.

“We are truly building a new republic, because when there is a strong infrastructure, it will promote investments into these cities which will in turn improve the lives of those who live in or around them,” Mr El Gazzar said.

The minister said that urban communities worldwide generate 70-75 per cent of a given country’s gross domestic product (GDP), which highlights the pressing need to urbanise more of Egypt’s agricultural provinces to enable them to contribute more meaningfully to economic growth.

As it stands, the Nile Delta is 72 per cent rural, which the minister said is why the area has high unemployment levels.

Two schools and four universities were also opened as part of the first phase, and they have begun enrolling students from nearby provinces, Mr El Gazzar said.

New Mansoura is 54km north of Mansoura, the largest city of Egypt’s Daqahliyah province.

The Nile Delta is Egypt’s second most densely populated region after Greater Cairo.

Rail, entertainment and water

An electric train is expected to be launched in a later phase of development that will transport passengers between the two Mansouras in under 15 minutes.

When completed, the city will also be equipped with a number of smart features including solar-panelled roofs and a smart surveillance system which will connect to a central command centre, much like the New Administrative Capital, another of Mr El Sisi’s urban developments which has become a divisive project in his two-term presidency.

Twenty-five per cent of New Mansoura will be made up of green spaces, according to Mr El Gazzar, who added that sustainability was one the project’s top priorities. This translates into 12.6 square metres of green spaces per resident, he said.

Additionally, the city was built 2m above sea level to accommodate the Mediterranean's rising waters, a pressing environmental concern for Egypt.

To accommodate its growing population, Egypt must construct 600,000 new homes every year, Mr El Gazzar said, adding that since 2014, 100 billion Egyptian pounds (about $4 billion) had been spent on public service infrastructure alone for the 30 new cities the government has started building since then.

Since 2014, 333 billion Egyptian pounds has been spent on building the cities themselves, the minister said, without specifying how much of that came from the country's coffers and how much came from private-sector investment.

Mr El Sisi interrupted Mr El Gazzar’s address on Thursday to stress the direness of the country’s population problem.

“When we say that overpopulation is going to ravage this country, we are not just trying to scare you, we are saying this to get all the country’s institutions, especially its religious authorities, to help us combat this problem,” Mr El Sisi said. “With this level of population growth and the resources available to us, we are definitely ill-equipped.”

Mr El Sisi also took a moment to answer criticisms of his construction-heavy national strategy, which has contributed significantly to the country’s debt.

“There are people who wonder why we are building roads and bridges instead of feeding people. If I were to do this, it would be an injustice not just for this generation but also for the next one,” Mr El Sisi said.

“The only way for us is patience and work, only patience and work. The only other option is to let this country deteriorate and just accept that it won’t make a difference anyway.”

Mr El Gazzar highlighted how New Mansoura’s beaches will be open to all with no preference given to more affluent Egyptians, as is the case in other prominent Egyptian beach resorts on the Mediterranean.

A number of recreational and entertainment facilities have also been launched under the first phase that “the area’s residents might not have seen the likes of” in the past, the minister said.

Furthermore, the city will house the Nile Delta’s first desalination plant, which was announced in 2019 and built by Hassan Allam Developments, one of the Sisi administration’s most prolific private-sector developer partners.

The plant is expected to generate 40,000 cubic metres of water per day when completed.

Mr El Sisi said that he plans to increase the number of desalination plants to provide water for agriculture and residential use in provinces on the coast.

He said that ideally the Nile’s waters, which are under threat of dwindling with the construction of the Grand Ethiopian Renaissance Dam, will be directed to the country’s inland provinces, while coastal provinces can cover their water needs from desalination plants.

“Our population is growing every day and we need to find viable sources of water for them to use,” Mr El Sisi said. “These plans were the product of years of study, we had scientists and experts study how best to construct the desalination plants.”

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Director: James Cameron

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Rating: 4.5/5

Company profile

Name: Thndr

Started: October 2020

Founders: Ahmad Hammouda and Seif Amr

Based: Cairo, Egypt

Sector: FinTech

Initial investment: pre-seed of $800,000

Funding stage: series A; $20 million

Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC,  Rabacap and MSA Capital

Company Profile

Company name: Fine Diner

Started: March, 2020

Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka

Based: Dubai

Industry: Technology and food delivery

Initial investment: Dh75,000

Investor: Dtec Startupbootcamp

Future plan: Looking to raise $400,000

Total sales: Over 1,000 deliveries in three months

PROFILE OF INVYGO

Started: 2018

Founders: Eslam Hussein and Pulkit Ganjoo

Based: Dubai

Sector: Transport

Size: 9 employees

Investment: $1,275,000

Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri

If you go

The flights

There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.

The trip

Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.

The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.

 

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Updated: June 12, 2023, 11:56 AM