CAIRO: The UAE’s construction company Arabtec Holding has agreed on terms to commence the first phase of its one million unit housing project in Egypt, according to a Thursday statement to the Dubai Financial Market.
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 statement, Arabtec affirmed media reports that Egypt’s Cabinet has approved Arabtec’s initiative to construct phase one of the project which consists of 100,000 units in Obour and Badr cities.
It added that “Arabtec will sign a final contract for this first phase with the Ministry of Housing’s New Urban Communities’ Authority at the earliest opportunity.”
For Arabtec, Egypt’s project is a “top priority,” being one of the largest projects in the region which would contribute to the company’s success as well as its shareholders’’ interests.
Earlier this week, Arabtec chairman Khadem Al Qubaisi revealed in an interview with The Wall Street Journal, that his company is currently in talks with banks to secure around $100 million to $200 million to launch phase one of its housing project in Egypt.
Qubaisi said he hopes soon to start the first phase of the project that would construct 100,000 units and take five to seven years to be completed, adding that Arabtec would work with local contractors like Egypt’s Orascom Construction to build middle-income units.