Arabtec to undertake housing project worth $40bn in Egypt
UAE-based construction giant to work with Egyptian government on housing project in three phases
UAE-based architecture group will design master-plan for the housing project
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Arabtec will undertake the construction of residential units under in Egypt. The company was reportedly in talks with the Egyptian government, and had stated in March that ‘it had begun talks with the Egyptian government towards setting up a joint venture to build the low-cost homes’.
UAE-based Architecture and Planning Group will prepare the master plan for the $40bn-worth project, which involves the construction of a million low cost homes, El Sayed Zakaria, managing director of the company informed local daily The National.
“We are in charge of the project’s master plan to allocate 13 plots across Egypt for the housing units,” he said.
According to a report by the daily, the project will be implemented in three phases, with designs for the first phase to be submitted by September, and contract awarding due for two months later.
Concerns have been raised regarding the practicality about the project, the report continued.
“In its last conference call, Arabtec management declined to give any guidance on its $40bn MoU signed with the Egyptian ministry of defence,” Kareem Ghaly, an equity analyst at the Egypt-based investment bank EFG-Hermes told the daily. “The management mentioned that the agreement is still in the structuring phase.
“The company did mention, however, that it will hold an analyst day in the coming weeks to disclose more details about this agreement. Until more solid facts are disclosed, we would remain cautious on the prospects of such an agreement.”
