The Administrative Capital for Urban Development (ACUD), the company in charge of developing Egypt’s New Administrative Capital, is set to sign about five partnerships with major Egyptian and Gulf developers for large plots of land in the first phase of the project, said Khaled Abbas, the Chairperson and Managing Director of ACUD.
In an interview with Daily News Egypt, Abbas said that these partnerships are expected to be finalized by the end of the first quarter of this year, with a total value of around EGP 200bn, covering an area of about 2,000 feddan out of the remaining 5,000 feddan in the first phase.
Abbas revealed that the ACUD achieved a 30% increase in profits by the end of 2023, recording about EGP 26bn before taxes, compared to EGP 19.8bn before taxes in 2022, an increase of 23% over the previous year.
Regarding the recent offering of lands and paying their down-payments in dollars, Abbas explained that there was good demand from developers to buy land plots in the MU23 area, but the company is still studying the technical and financial solvency of the developers.
He added that the company has so far agreed to about 12 offers from developers with an investment value of nearly EGP 1.25bn, out of a total value of EGP down payments for the 50 offered plots of small areas.
He disclosed that the company has begun planning the second and third phases of the Administrative Capital project, and the general plan for the second phase is scheduled to be completed by the end of this year. Meanwhile, the infrastructure of the phase would begin to be executed at the beginning of 2025, and then the plots of land in it will be offered for sale after the completion of the infrastructure.
Abbas expected that the total value of the entire infrastructure of the second phase of the New Capital project would reach almost EGP 250bn on 40,000 feddan.
The ACUD’s board of directors is studying a plan to increase the paid-up capital from EGP 44.5bn to EGP 70bn after holding the general assembly to approve profits before the end of next April, according to Abbas.
He concluded by saying that the company is working on the construction of about 15 embassies of foreign countries and that some negotiations are still ongoing with other countries to obtain headquarters within the Diplomatic district in the New Administrative Capital. The company has completed negotiations with the African Development Bank and the Islamic Development Bank to acquire land in the district, and the construction of a building for international organizations and the United Nations is underway.
The ACUD announced the signing of a partnership contract with the global leader in digital transformation, Atos, to establish a new company that provides information technology services and smart solutions and enhances the technological infrastructure in the New Administrative Capital.
