The Emirati sovereign wealth fund ADQ is leading a massive project to build Ras al Hikma, a new city on the Egyptian coast between El Alamein and the Libyan border. An initial payment of US$35 billion has been made to Cairo, with the total project cost expected to reach US$150 billion. This investment aims to help Egypt emerge from economic crisis, reduce population concentration in Cairo and along the Nile River, and boost tourism.
The city of Ras al Hikma will feature various housing options, international hotels, entertainment projects, schools, universities, hospitals, administrative complexes, a central business district, and an international port for yachts and tourist boats. The Prime Minister of Egypt believes this project will attract 8 million more tourists per year and create new job opportunities for young people.
This investment marks the largest direct foreign funding ever made in Egypt’s history. The UAE has been actively involved in various projects across Africa, taking advantage of its geopolitical position on the continent. Apart from the Ras al Hikma project, they have also invested in renewable energy and logistics projects such as ports in Somaliland and Mozambique. Additionally, they have engaged in agriculture projects in multiple African countries and are looking to offset carbon emissions to sell credits to other nations.
However, their increasing influence in Africa has raised concerns among environmentalists and human rights groups. Recent reports suggest that the UAE may be fueling violence in Sudan by sending weapons to paramilitary groups. As they become more prominent players on the global stage, they will face increased scrutiny for their actions including allegations of human rights violations. Despite this criticism, Abu Dhabi is striving to present itself as progressive and tolerant while facing accusations of repression and lack of transparency.
