HELD UNDER THE PATRONAGE OF HIS EXCELLENCY DR. MOUSTAFA MADBOULY, PRIME MINISTER OF THE ARAB REPUBLIC OF EGYPT

22 - 24 SEPTEMBER 2020 EGYPT INTERNATIONAL EXHIBITION CENTER

WHY EGYPT

WORLD'S 7TH LARGEST ECONOMY BY 2030*

Egypt is in the midst of a construction boom. In total, more than $20bn worth of real estate and civil infrastructure projects valued $50m or above have been awarded over the past two years alone. Egypt is in fact the only country in the Middle East & North Africa (MENA) where overall spending on projects has grown in the past two years, and it has overtaken Saudi Arabia as the second-largest single projects market in the region as a whole, recording in 2018 more than $33bn of contract awards. 
*Source: Bloomberg

$300BN worth of known planned and un-awarded projects in Egypt

More than $90BN of future projects are in the design stage

Real estate and civil infrastructure projects worth $50m or above have been awarded in over the past two years

Egypt is the third biggest projects market in the MENA region

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ANALYSIS OF EGYPT'S CONSTRUCTION PROJECTS MARKET

THE EGYPT CONSTRUCTION PROJECTS MARKET

EGYPT CONSTRUCTION PROJECTS PANORAMA

ANALYSIS OF EGYPT'S CONSTRUCTION PROJECTS MARKET (WEBINAR)

FUTURE CONSTRUCTION PROJECTS IN EGYPT

High-speed rail lines

Estimated value
$14 billion

Developer
Ministry of Transport


Stage

In bidding

Al Habtoor City Cairo

Estimated value
$8.5 billion

Developer
Al Habtoor


Stage

Study

Badya Palm Hills

Estimated value
$8.5 billion

Developer
Palm Hills Developments


Stage

Design

Jumeirah Bay Ras el-Hekma

Estimated value
$1.7 billion

Developer
Jumeirah Real Estate and Sakan Developments

Stage
Design

LATEST EGYPT INDUSTRY UPDATES

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Construction of Africa's tallest tower begins in Administrative Capital

CAIRO, Nov 16 (MENA) – Housing Minister Asem El Gazzar on Saturday witnessed the launch of construction works to start building the metal structure of Africa's tallest tower at the New Administrative Capital. He had a meeting with officials from China’s CSCEC company, which carries out construction, to check work progress of the 80-story tower. The 385-meter height tower is set to be built over an area of some 240,000 square meter. The minister pointed out that the Chinese company constructs 20 towers in the central business area in the Administrative Capital, while the tallest tower will be at the heart of the region.

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E1 RE
Egypt builds world’s largest block of flats: £420million mega structure designed by Mohamed Hadid

The world’s biggest block of flats for 30,000 residents – complete with its own shopping mall, cinema and ski slope – is being built in Egypt with the help of property tycoon Mohamed Hadid at a cost of £420million. The gigantic Skyline building is set to be built on the outskirts of the capital Cairo and will ease overcrowding in the city which has a population close to 21 million people and is expanding by 500,000 a year. The luxury complex, the size of a small town, is to be built in the southeastern suburbs of Kattameya and is scheduled for completion in 2025. The complex will have 13,500 apartments and a 40-acre garden with a network of cycle paths. An artist’s impression of the gardens in the £420million complex that is being built in Cairo. He is working with the Spanish firm Van der Pas and the Egyptian engineer Raef Fahmy on the venture. It will have 13,500 apartments ranging in price from around £35,000 for a studio to £90,000 for a three-bed flat. Residents will be able to enjoy a 40-acre garden, a network of cycle paths and the world’s largest infinity pool on the roof. It will also boast a shopping mall with international brands, restaurants an ice-skating rink, fitness centre, dry ski slope and a rock climbing wall. The gigantic Skyline building is set to be built on the outskirts of the capital Cairo and will ease overcrowding in the city which has a population close to 21 million people and is expanding by 500,000 a year The luxury complex, the size of a small town, is to be built in the southeastern suburbs of Kattameya and is scheduled for completion in 2025 Guinness World Records have confirmed the building as an official attempt at becoming the biggest residential building – but no current record exists in that category. The world’s tallest residential block is New York’s 426m-high 432 Park Avenue. The Skyline building will be 11 storeys high and cover 650,000 sq ft – a floor area four times that of the Great Pyramid of Cheops in Giza which itself was the biggest man-made building for nearly 4,000 years. The Egyptian government is already trying to ease the overcrowding issue by building a new administrative capital 28 miles east of the city centre. The designers of the new Skyline complex decided against building it there as they believe its residents will still want to be near the old capital and the Nile. Hassan Morshedy, chief executive of the Morshedy Group which is behind the project, told The Times that Skyline would be ‘iconic, beautiful, but also affordable.’ He said: ‘Skyline is solving a housing problem, it’s not only about setting a record. ‘It will have 13,500 apartments yet everyone will have privacy, and all the facilities and amenities they can dream of.’ More than 3,000 buyers have already put down deposits for an apartment in the building, with the first expecting to move in by the summer of 2022. Hadid, a Jordanian-American who was born in Palestine, said in a previous interview that the structure would ‘massive and iconic’ and that he was perfect for the job of designing it. He said: ‘It needs, I think, somebody of my background – I build hotels, city centers, large homes and projects of large magnitudes – to be able to deliver such a project. Hadid is currently fighting back against a judge’s order to tear down his controversial Los Angeles mega-mansion after his lawyers filed a last minute appeal. In new court documents obtained by DailyMail.com last month, Hadid is also appealing against LA Superior Court Judge Craig Karlan’s appointment of a receiver to oversee the demolition of the half-built ‘monstrosity’ dubbed the Starship Enterprise. The move flies in the face of what Hadid, 71, had told DailyMail.com in an exclusive interview in December last year – that he will demolish the property and replace it with something more modest. He said the mansion was ‘finished’ due to water damage, blaming the judge for not allowing him to cover it, and had to come down anyway. It was almost three months ago that Judge Karlan ruled that the giant house should be razed to the ground, branding the building a ‘clear and present danger’ to nearby homes in upscale Bel Air. But that order was put on hold when Hadid’s construction company filed for Chapter Eleven bankruptcy last November after claiming in court that he ‘couldn’t afford’ the $5 million cost of the demo. Source: Newsyworld.com

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E3 RE
Egypt to construct small hydroelectric stations in Al-Qanatir al-Khayreyah and Delta

Egypt through the Ministry of Electricity intends to construct small hydroelectric stations with different capacities ranging between 2 to 5MW in Al-Qanatir al-Khayreyah and Delta cities. The ministry has already identified seven eligible sites and in coordination with a German company and the Hydro Power Plant Executive Authority (HPPEA) conducted several studies to determine the feasibility of the projects. The German Development Bank (KfW) has allocated around US $33m to finance the project and what remains now, according to a source from the ministry, is a green light which is expected before the end of the first half of this year from the ministry of irrigation. Future of renewable energy projects in Egypt Currently, the average annual energy produced from existing hydroelectric stations in Egypt is approximated to be 13bn kw/h and this saves fuel equivalent to 3m tonnes of oil annually, in addition to its contribution to reducing carbon dioxide emission by 7.2m tonnes. The Ministry of Electricity further considers adding bids of private companies to establish renewable energy plants to its 2035 Strategy which aims to produce about 47% of Egypt’s total energy from renewable resources. According to Minister Mohamed Shaker, the ministry has formed several committees including the Egyptian Electricity Holding Company (EEHC), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA) to study offers by investors to establish energy projects with a total capacity of 5GW. He emphasized that they will not sign any energy contracts or agreements beginning from this year before it ensures their suitability to the 2035 Strategy. “Every single year, we shall announce our plans and target projects, upon which companies can apply to launch power plants and we shall choose the best technical and financial offers,” said Shaker.

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Egypt 4Re
Construction of Sakan Misr and Badr City social housing projects in Egypt in good progress

Egypt’s Minister for Housing, Utilities, and Urban Areas, Minister Assem al-Gazar recently announced that construction of Sakan Misr and Badr City social housing projects is progressing well. Gazar said that about 1,080 residential units distributed over 45 buildings in the first and second phases of the Sakan Misr project in Badr City are in the final stage of construction, adding that the flats in 24 buildings of the second phase are being delivered by contractors to the ministry. The minister explained that 1,272 units in 53 buildings of the first phase, and 9,024 units in 376 buildings of the second phase are still under construction. Badr City social housing project In regards to the Badr City social housing project, Chairman of Badr City Development Agency Amar Mandour revealed that 8,424 units distributed over 351 buildings are currently under construction and that contracts have been signed with developers to construct 32,424 units in 1,351 buildings. He stated that five medical centers in different areas in the city have already been completed, and that seven others along with a medical unit are still under construction. Similarly, eight schools are being built in different neighborhoods, while a technical education school namely Tahya Misr and a hospitality school called Talaat Harb have been inaugurated. Dar Misr housing project consists of around 35,000 residential units and will be accomplished over three phases. The second and third phases will have 43,000 units and 19,000 units, respectively. Importance the projects The above-mentioned projects are meant to offer residential units across the country for middle-class citizens whose housing needs are mostly overlooked by private developers who seek high margins of profit by catering for the luxury market. The payment plan for this units is that 10% must be paid six months after the reservation on the website and 30% upon delivery of the unit. The remaining 60% will be paid as quarterly installments over a four years period starting three months after the receipt of the unit.

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Egypt 5Re
Egypt begins construction of Middle East’s largest private medical city

The Arab Republic of Egypt has officially begun the construction of Middle East’s largest integrated private medical city following the groundbreaking ceremony of the project which was officiated by Egyptian Housing Minister Assem al-Gazzar. The project is owned by Egyptians for Health Care Services Two (EHCS), and it is one of the Badr City’s mega projects, which has been affected positively recently due to the New Administrative Capital’s development. An overview of the project The project is sited on 57 acres of new development across the new capital city of Egypt on Cairo Suez road, it is poised to be an anchor and catalyst to the surrounding area. Its landscape design proposes a balance between sustainable, low water use, native landscape and a green, shaded retreat. The desert landscape surrounding the site transitions into low maintenance, cost-effective, xerophytic landscape that creates a landscape buffer between the desert/road and the internal courtyards of the medical campus. Specific gardens in the premises are connected to relevant buildings so as to ensure that the outdoor spaces can be utilized as an extension of the internal medical facilities. Also Read: Construction of Sakan Misr and Badr City social housing projects in Egypt in good progress Construction of the entire project will be completed in 7 to 10 years’ time in 3 phases upon which there shall be a 350-bed state-of-art general hospital, clinics plaza, a hotel, and 11 specialized medical excellence centers. Furthermore, 10,000 to 13,000 job opportunities shall be created. Capital Med The chairman of the EHCS Hassan al-Kalla said that Capital Med is a fully-fledged international medical city, providing the best the world has to offer in healthcare with international standards. He added that it is also the most appropriate platform for medical education, training, and research for all health and medical specialties. The project will be established with investments of over US $1bn.

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Egypt 6Re
Egypt's building a new capital: Inside the smart city in the desert

Egypt is busy building a new – as yet unnamed – capital, designed to be the country's new administrative hub and home to more than 6.5 million residents. The new capital will cover 700 square kilometers, or 270 square miles, making it about the size of Singapore, and will be located 35 kilometers, or 21 miles, east of Cairo. Plans for the city include a new parliament and presidential palace, Egypt's largest airport, Africa's tallest tower, the Middle East's largest opera house, a $20bn entertainment district, and a giant urban park bigger than Central Park in New York. A LOOK TO THE FUTURE One key driver behind the initiative is the country's rapid population growth. A new baby is born in Egypt – the most populous country in the Middle East – every 15 seconds, which translates to about two million new people a year. Cairo is already a congested, polluted, and overcrowded city that is predicted to double in size by 2050 to 40 million people. By then, the country's wider population is expected to jump to 150 million, up from just over 100 million today. "Forget ISIS, Egypt's population boom is its biggest threat," Newsweek declared in 2017. Population challenges aside, other potential motives for the move include a desire by President Sisi – who came to power when the military took charge in 2011 – to break from the past and make his mark in history, as well as efforts to stimulate the economy, which has remained sluggish since the events of the Arab Spring. MONEY WELL SPENT? Projected costs for the new capital range between $45bn and $58bn. While the initiative has its supporters, others have questioned the expense, given some of the financial challenges – such as rapid inflation, unemployment, a downturn in tourism, "shoddy infrastructure" and "modest" job creation – that the country has faced in recent years. Although there are positive signs in all these areas, there is still a lot of work to be done. "For the country to watch the government spend tens of billions on this [city] while also hearing them say we all have to tighten our belts, it sends a contradictory message," Timothy Kaldas, a non-resident fellow at the Tahrir Institute for Middle East Policy in Cairo, told NBC News. "There is something very wrong with the order of priorities," agreed political analyst Hassan Nafaa in an interview with AP. "Maybe el-Sissi wants to go down in history as the leader who built the new capital. But if Egyptians don't see an improvement in their living conditions and services, he will be remembered as the president who destroyed what is left of the middle class." PROGRESS Despite these misgivings, development is rapidly moving ahead. The first government ministries are intended to relocate to the new capital in mid-2020, and a flurry of contracts have recently been signed for everything from a new $834m business park to a city-wide digital security system, and Honeywell installing over 6,000 wireless cameras across the city. Meanwhile, the state-owned operator Telecom Egypt agreed in September 2019 to build a EGP40bn ($2.44bn) telecommunications network within the next six months. Train and plane manufacturer Bombardier has been contracted to build a 21-station monorail in the new city, as well as a new line to connect East Cairo with the new capital. SEE: How to optimize the smart office (ZDNet special report) | Download the report as a PDF (TechRepublic) Described by Danny Di Perna, the president of Bombardier Transportation, as "the smart mobility solution for Cairo's urban future", the 54km (33-mile) line can carry 45,000 passengers an hour. The estimated travel time from East Cairo to the new capital is around 60 minutes. SMART TECHNOLOGY TO THE FORE A website for the project promises that "the new capital is developed with the strategic vision for a smart city integrating its smart infrastructure to provide many services to citizens". This vision includes: smart monitoring of traffic congestion and accidents, smart utilities to reduce consumption and cost, smart buildings and energy management including a focus on renewable energy and using IoT to save power consumption, as well as "building optical-fiber infrastructure connecting every building using FTTX technology". Plans for a 90-square-kilometers solar (35-square-miles) farm are also part of the mix. Alongside this, the government has announced that it intends to make the New Administrative Capital the first cashless city in the country. The development of e-commerce, which it's hoped will be stimulated by this move, and mobile money are big strategic priorities for the government. At present, there are around 20 million active mobile payment accounts in the country, but the Egyptian Central Bank wants to double this in the next two years. FINANCIAL AND OTHER CHALLENGES Although plans are progressing, there have been some bumps in the road. Reuters reported last year that the "project is struggling to raise funds and needs to overcome other challenges after investors pulled out". "We need very extensive financing," it quoted Ahmed Zaki Abdeen – a retired general who heads the company building the new city – as saying. "And the state doesn't have money to give me." As a result, around 20% of investment to date has come from overseas. According to Abdeen, China has contributed up to $4.5bn towards the costs and China State Construction Engineering is also training 10,000 Egyptian construction workers. SEE: Tech in Egypt: Here's what you need to know about Middle East's biggest market Interestingly, writing in Daily News Egypt last year, Matt Walker of MTN Consulting, has stated that much of China's contribution is in the form of loans, and that "Chinese banks are lending funds only to buy Chinese equipment". And, of course, building in the desert also brings with it other challenges. One obvious example, which Reuters highlighted, is that "the city will consume an estimated 650,000 cubic meters a day of water from the North African nation's scarce resources". WILL IT BE A SUCCESS? Cairo's continued expansion is clearly unsustainable. The city faces many problems, including being named the most polluted city in the world. However, whether creating a new capital city is the best solution to this problem is a moot point. The Economist, for example, described the move as "an elephant in the desert", noting that although the new capital will be an employment hub, "few civil servants can afford to live there". "On average they earn EGP1,247 ($70) a week, last year the housing ministry listed apartment prices in the city at more than EGP11,000 ($698) per square meter." Others are concerned about the potential implications for Cairo's historic capital. "With a new Egypt capital being built, what becomes of Cairo?" asked AP's Hamza Hendawia in an article last year. There are fears, as expressed by Amar Ali Hassan, a socio-political expert, that Cairo – Egypt's capital for over a thousand years – "could be neglected, become estranged and left to die a slow death." As a result, Khaled Fahmy, a history professor at the American University in Cairo, is just one critic who has argued that the money needed for the new capital could be better used fixing the existing capital's problems. Moreover, recent history is littered with examples – from Brasilia to Abuja – of new administrative capitals that didn't quite deliver on their early promises.

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We would like to thank The Ministry of Housing Utilities and Urban Communities for their constant support. In 2019, The Minister of Housing, Utilities and Urban Communities, Dr. Eng. Assem Abdul Hamid Al-Gazzar, officially inaugurated the second edition of The Big 5 Construct Egypt.


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