CAIRO: The UAE’s Arabtec Holding emphasized its commitment to implement a “strategic” million housing units’ project in Egypt, it said in a clarification to the Dubai Financial Market Thursday.
The project was initially proposed as part of President Abdel Fatah al-Sisi’s electoral campaign launched in March 2014, and its total value is estimated at $40 billion. Sisi said the project aimed to solve housing problems by providing affordable houses for low-income people.
In the disclosure statement, Arabtec said: “The company is committed to and proceeding with the million housing units’ project in Egypt.”
Confirming previous letters about approaching the final stages of concluding the deal with competent bodies in Egypt, the company said it would commence construction of phase one of the project as soon as possible.
The company said that the project is “strategic” and would bring in “attractive revenues” for Arabtec, its shareholders and investors.
Arabtec’s statement affirms Egypt’s Housing Minister Moustafa Madbouly’s remarks earlier this week about approaching a final agreement between Egypt and the Dubai-based company to commence the first phase of the One Million Unit housing project with an estimated 20 billion EGP ($2.62 billion) investment.
In an interview with CNBC Arabia TV on the sidelines of the three-day Egypt Economic Development Conference in Sharm el-Sheikh March 13-15, the minister said: “A final agreement will be signed within a month.”
Upon the agreement, Egypt’s government will receive a portion of the constructed units, but this share has not been determined yet, Madbouly added.
Phase one comprises around 100,000 middle-income units in el-Obour, Badr and New Minya cities, Madbouly said in a TV interview last week, adding that these cities were selected because of their need for more development.
Construction on the project was originally scheduled in the third quarter of 2014, but talks between the Egyptian government and Arabtec were stalled and the project, which will cover 160 million square meters in 13 locations in Egypt, including Cairo, Alexandria and Luxor, was surrounded with uncertainty after its former chief executive, Hasan Ismail, resigned in June.
Earlier in October, Arabtec announced its commitment to implement the project after several media outlets reported that the company was no longer interested.