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Abu Dhabi-based holding company ADQ has appointed Modon Holding as the master developer for its Ras El-Hekma project – a planned new city on Egypt's Mediterranean coast.

According to the official statement, Modon will act as the master developer for the entire development, which covers more than 170 million square metres (sq m).

Modon Holding will develop the first phase of the project, which will cover 50 million sq m.

The remaining 120 million sq m will be developed in partnership with private developers under the supervision of the recently established ADQ subsidiary Ras El-Hekma Urban Development Project Company and Modon Holding.

The agreement was signed during a ceremony that was attended by President of the UAE, Sheikh Mohamed Bin Zayed Al-Nahyan, and President of Egypt, Abdel Fattah El-Sisi.

Signed agreements

Earlier in September, Modon Holding signed several memorandums of understanding (MoUs) with local and international firms to join the development.

The developer signed a framework agreement with local firm Orascom Construction to serve as the primary contractor for the project's first phase.

An MoU was also signed with Egyptian firm Elsewedy Electric for the supply of building materials and collaboration on industrial parks, manufacturing, operations and maintenance.

Another MoU was signed with Abu Dhabi Airports to collaborate on airport strategic planning, design, development and operational support.

Modon also signed an agreement with Abu Dhabi's Taqa for the development, financing and operation of greenfield utility infrastructure projects, water desalination projects, electricity transmission and distribution projects and wastewater projects at the development.

An MoU was signed with Spain's Valderrama for the development and operation of golf communities.

The client also involved e& Egypt to design and implement the overall telecommunications and communications infrastructure at the development

Modon Holding also signed an agreement with UK-based firm Candy International to explore opportunities in real estate development.

An MoU was signed with US-based Montage International to develop and manage hotels in Ras El-Hekma.

Another MoU was signed with French firm Accor and UK-based Ennismore to operate hotels and resorts.

UAE-based Burjeel Holding will also be involved in developing multi-speciality healthcare facilities within the development.

Background

In February, ADQ confirmed that it is the bidder previously referred to by Egyptian authorities as being in negotiations to acquire the development rights for the new city of Ras El-Hekma.

ADQ acquired rights to develop the project for $24bn and, as part of the deal, is investing a further $11bn in other projects across Egypt in support of economic growth and development. Modon Holding was reported to be a partner in the development.

Ras El-Hekma is on a spur of land on Egypt’s northern coastline in the Mediterranean Sea, about 240 kilometres west of Alexandria.

The greenfield development is planned as a combined business and leisure destination, with hotels, leisure facilities, a free zone, a financial district and residential components.

The master development has been billed as having the potential to attract over $150bn in investment.

Egypt’s General Authority for Investment & Free Zones (Gafi) confirmed on 8 February that a UAE consortium would be undertaking the master development, which was first proposed in 2020 as a joint plan of UN Habitat and the Egyptian Housing Ministry.

The deal with ADQ will see the Egyptian government retain a 35% stake in the development. Gafi originally said that state-run entities, including Talaat Moustafa Group, would retain a 20% stake in the project.

Construction work on the scheme is expected to commence in early 2025.