Arabtec Holding’s securing of a US$40 billion project to build houses in Egypt could open the floodgates for a wave of investments from the UAE, says the chief executive of the country’s biggest investment bank.
Karim Awad, co-chief executive of EFG-Hermes Holding, was speaking after the UAE’s largest listed construction company’s revealed plans to develop 1 million homes over five years, spearheading a massive public housing programme in the country. The Dubai-listed builder’s stock gained 1.67 per cent yesterday following the disclosure late on Sunday.
“It visibly demonstrates how the UAE is supporting the government of Egypt,” said Mr Awad on the sidelines of a conference hosted by the bank in Dubai. “If one investor comes in it gives confidence for other investors to start working. Regardless of what has been happening in the recent period, the Egyptian market still has 90 million people, still has a lot of human capital and a lot of industries offering huge potential to GCC companies.”
Ties between the UAE and Egypt have deepened in recent months after the UAE extended $6bn in support of the Arab world’s most populous country following a revolution and the removal of the former president Mohammed Morsi in July.
Saudi Arabia and Kuwait have also extended assistance as Egypt struggles with lacklustre growth and a dearth of investment.
Arabtec’s deal, believed to be the largest housing project in the Arab world, is viewed as a cornerstone of the government’s bid to provide affordable housing to Egyptians. As many as 16 million are estimated to have inadequate housing.
