Construction

Arabtec to start work on $40bn Egypt project ‘in days’

Egyptian Housing Minister tells local TV channel that work on low cost housing project will begin imminently

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Arabtec, the UAE-based contractor, will start work on a $40 billion Egyptian housing project within a few days, the Egyptian Housing Minister has claimed.

Speaking on a local television channel, Mustafa Madbouly said that three cities have been chosen for the project following the identification of their development needs. Phase one of the project will target the construction of nearly 120,000 units in Al Obour, Badr and New Al Menia cities, Madbouly revealed.

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The project was originally set to start construction in the third quarter of 2014 but was faced with uncertainty and speculation when former CEO Hassan Ismaik resigned in June, which was followed by a period of upheaval in the boardroom and at senior management level.

These incidents prompted rumours at the time that Arabtec was no longer committed to the project, which was set to provide low-cost housing to a huge swathe of the Egyptian population.

However, a few months later, Arabtec announced that it would commence the $40 billion project and confirmed that progress had been made with the Egyptian authorities. The company also released a statement reiterating its commitment to the project.

Arabtec officials have yet to respond to the Minister’s comments.

READ MORE: Dubai’s Arabtec in bid to save $40bn Egypt deal as shares fall further
READ MORE: Arabtec unit wins Saudi Aramco contracts worth $253m
READ MORE: Abu Dhabi’s Aabar boosts stake in Dubai-listed Arabtec
READ MORE: Dubai-listed Arabtec wins two Emaar contracts worth $100m

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