2024-08-28 13:35:49
Official sources of the alliance, including the “Shafar” organization, announced emiratis and companySaudi Arabia Egyptian For the construction industry, plans to develop land belonging to the disbanded National Party overlooking the Nile in central Cairo were withdrawn due to high implementation costs due to the depreciation of the Egyptian pound earlier this year.
In March last year, the Egyptian government allocated the project to develop this land to two companies affiliated with Egypt’s sovereign fund: “Nilos” for hotels and commercial services, and “Nilos” for residential services.
According to “Al-Sharq”, the official said that the Gulf Alliance withdrew from the land development project in cooperation between the National Party and Egypt’s sovereign fund because of the high construction costs caused by the recent depreciation of the Egyptian pound.
Show related news
He explained that the partnership’s specific ratios were based on assessing the price of land versus buildings, but that these ratios were affected by the fall in the value of the pound and rising raw material and energy prices.
The project aims to build two towers; one is a 75-storey hotel containing hotel, administrative and commercial units; the other is a 50-storey residential tower containing 446 luxury residential units.
In September 2020, after years of disputes between the Ministry of Antiquities and the Cairo government, the Egyptian government assigned the National Party’s land overlooking the Nile River, covering an area of approximately 16,500 square meters, to the “Egyptian Sovereign Fund.”
Currency devaluation is the reason
Over the past two years, exchange rates between Egypt’s official market and parallel markets have fluctuated significantly, affecting various industries, including the real estate development industry, raw material prices, and the emergence of parallel markets for these materials.
Show related news
As the government allowed the pound to devalue in March last year and the pound has since remained stable against foreign currencies, prices for construction materials and production inputs have begun to fall. Under the Investment Law, the project adopts a single approval system covering the establishment, operation and management of the project, including construction permits.
In 2014, the government agreed to demolish the National Party building near Tahrir Square in central Cairo. The building was built in the early 1950s by engineer Mahmoud Riad, who also built the Tahrir Complex in 1951-1952.
1724856872
#UAESaudi #Arabia #alliance #withdraws #major #investment #project #Egypt..
