UAE's ADQ Consortium to Invest $35 Bn in Egypt

Officials sign the Ras El-Hekma project agreements in the presence of Egyptian Prime Minister Mostafa Madbouly. (WAM)
Officials sign the Ras El-Hekma project agreements in the presence of Egyptian Prime Minister Mostafa Madbouly. (WAM)
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UAE's ADQ Consortium to Invest $35 Bn in Egypt

Officials sign the Ras El-Hekma project agreements in the presence of Egyptian Prime Minister Mostafa Madbouly. (WAM)
Officials sign the Ras El-Hekma project agreements in the presence of Egyptian Prime Minister Mostafa Madbouly. (WAM)

ADQ, an Abu Dhabi-based investment and holding company, has unveiled plans to invest $35 billion in Egypt.  

ADQ will acquire the development rights for Ras El-Hekma for $24 billion to develop the region into one of the most significant new city developments by a private consortium.  

ADQ will also convert $11 billion of deposits that will be utilized for investment in prime projects across Egypt to support its economic growth and development.  

Ras El-Hekma is a coastal region in Egypt located approximately 350 kilometers northwest of Cairo, spanning over 170 million square meters.

The significant investment marks a pivotal step towards establishing Ras El-Hekma as a leading first-of-its-kind Mediterranean holiday destination, financial center, and free zone equipped with world-class infrastructure to strengthen Egypt's economic and tourism growth potential.  

The Egyptian government will retain a 35% stake in the Ras El-Hekma development.  

Ras El-Hekma will be a next-generation city comprising mainly of tourism amenities, a free zone, and an investment zone combining, among others, residential, commercial, and recreational spaces with seamless connectivity domestically and internationally.  

ADQ is leveraging its expansive portfolio and partners, aiming to unlock the appeal of Ras El-Hekma as a premium international financial and tourism destination, adopting the latest cutting-edge digital and technological smart city solutions.  

The Holding Company will also benefit from Egyptian and international partners to support its development and investment plans.  

ADQ's experience in providing fully integrated infrastructure solutions across a broad range of services promises to bring significant benefits to the new development and Egypt's economy and is expected to attract over $150 billion in investments.  

ADQ CEO Mohamed al-Suwaidi said the company is a long-standing investment partner in Egypt and has demonstrated its ability to select opportunities aligned with its investment framework and benefit the Egyptian economy.  

"The investment underscores our commitment to developing Ras El-Hekma into one of Egypt's most attractive coastal destinations through the enablement of mega-infrastructure and development projects," Suwaidi was quoted by the UAE state news agency (WAM).  

He explained that the company will work with partners such as Modon Properties and Talaat Moustafa Group to deliver value across multiple sectors of Egypt's vibrant economy.



Oil Little Changed after US Crude Inventory Build

An oil pump of IPC Petroleum France is seen during sunset outside Soudron, near Reims, France, February 6, 2023. REUTERS/Pascal Rossignol/File Photo
An oil pump of IPC Petroleum France is seen during sunset outside Soudron, near Reims, France, February 6, 2023. REUTERS/Pascal Rossignol/File Photo
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Oil Little Changed after US Crude Inventory Build

An oil pump of IPC Petroleum France is seen during sunset outside Soudron, near Reims, France, February 6, 2023. REUTERS/Pascal Rossignol/File Photo
An oil pump of IPC Petroleum France is seen during sunset outside Soudron, near Reims, France, February 6, 2023. REUTERS/Pascal Rossignol/File Photo

Oil prices were little changed on Thursday after rising to a near one-week high in the previous session, as an industry report showing a buildup in US crude stockpiles pressured the market.

Brent futures were up 34 cents, or 0.5%, at $76.38 a barrel by 1407 GMT. US West Texas Intermediate crude rose 26 cents, or 0.4%, to $72.51.

US crude stocks rose by 3.34 million barrels last week, market sources said, citing American Petroleum Institute figures on Wednesday.

Oil prices edged lower on Thursday because of the stock build in the US, said Saxo Bank analyst Ole Hansen.

"The market continues to lack a clear direction, with supply disruptions in Kazakhstan and the OPEC+ production increase delay being offset by global demand worries," Hansen said.

Official oil inventory data from the US Energy Information Administration (EIA) is due on Thursday.

Separately, Russia said Caspian Pipeline Consortium oil flows, a major route for crude exports from Kazakhstan, were reduced by 30%-40% on Tuesday after a Ukraine drone attack on a pumping station.

A 30% cut would equate to the loss of 380,000 barrels per day of market supply, Reuters calculations show.

However, other factors and potential boosts to oil supply added to concerns about prices.

Potential restarts of oil flows from Iraq's Kurdistan region were offsetting supply risks, analysts at ING said in a note.

Türkiye, which hosts the port of Ceyhan that loads the Iraqi oil from the Kurdistan region, did not receive confirmation from Iraq on the resumption as of Thursday, the country's energy minister told Reuters.

A resumption of the Iraqi oil flows would add 300,000 barrels of supply per day onto the market, ING analysts said.

Import tariffs announced by US President Donald Trump's administration could dent oil prices by raising the cost of consumer goods, analysts said, weakening the global economy and reducing fuel demand. Concerns about European and Chinese demand were also helping keep prices in check.

"It is natural to be concerned about the global economic outlook as Donald Trump takes a sledgehammer smashing away at the existing global 'free-trade structure' with signals of 25% tariffs on car imports to the US," said Bjarne Schieldrop, chief commodities analyst at SEB.