11 votes

Egypt announces $35bn deal with UAE to buy premium Mediterranean area

7 comments

  1. [2]
    stu2b50
    Link
    I looked for some other sources, and I do think this one did a bit of opining in their word choice here. The Reuters title is more neutral...
    • Exemplary

    I looked for some other sources, and I do think this one did a bit of opining in their word choice here. The Reuters title is more neutral

    Egypt announces $35 billion UAE investment on Mediterranean coast

    https://www.reuters.com/business/egypt-announces-multi-billion-uae-investment-boost-forex-2024-02-23/

    At least ostensibly, a UAE investment group has purchased what essentially amounts to a monopoly over development rights in the area. In some sense that is "buying" the territory, although on paper Egypt still maintains sovereignty over the land, and strictly speaking the UAE government isn't involved at all (although of course there are close ties between UAE's large investment groups and the government).

    All that is to say, this isn't quite the same as when, say, the US bought Alaska from Russia.

    19 votes
    1. skybrian
      (edited )
      Link Parent
      It does seem rather ambiguous what they're buying. There is also "buying land" as any person or business would do (getting title to the land), which doesn't imply a change in sovereignty. A real...

      It does seem rather ambiguous what they're buying. There is also "buying land" as any person or business would do (getting title to the land), which doesn't imply a change in sovereignty. A real estate developer does often own a lot of land while developing it, though they often later sell it off as a way of cashing out. Or they might have a long-term lease and plan to rent it out?

      All sorts of possibilities. Neither this article nor the other one go into detail about how the deal is structured, so it's hard to say whether that headline is right or wrong. They're buying something land-related, I suppose?

      Here's another article:

      Egyptian Prime Minister Mostafa Madbouly stated that the project represents the largest direct investment deal in the country's history, noting that it will bring $150 billion in investments to Egypt over the project's lifetime.

      ...

      The Gulf of Ras El Hikma is now directly linked to Cairo and Alexandria through the El-Dabaa axis and the North Coast road, facilitating easy access.

      Additionally, a massive residential block can now commute to the city after the development of Alamein and its connection through the Al-Fouka road, making the city an attractive investment destination.

      Furthermore, the city currently has access to electricity and fresh water following the comprehensive upgrade of the Egyptian electrical grid and the provision of water desalination stations for the city.

      ...

      The project represents a partnership between the Egyptian side and the largest real estate developers in the region, not a sale of the city's land.

      But I don't know what that means either. A city may own public land while other land is in private hands.

      1 vote
  2. [4]
    fefellama
    Link
    Wow that’s wild. What if some of them don’t want to go? Forcefully relocating some of your own people to sell off their land to a foreign government seems pretty shitty. The cynical side of me...

    Wow that’s wild.

    Concerning the fate of the residents of the Ras el-Hekma area, Madbouly said they would be relocated to other areas and would be provided financial compensation.

    What if some of them don’t want to go? Forcefully relocating some of your own people to sell off their land to a foreign government seems pretty shitty.

    The cynical side of me wonders how much of that 35billion will really go towards alleviating Egypt’s economic problems.

    6 votes
    1. rish
      Link Parent
      They don't really have a choice imo. The land is already gone. Either accept the compensation and move out; or move out and fight a legal battle.

      They don't really have a choice imo. The land is already gone. Either accept the compensation and move out; or move out and fight a legal battle.

      3 votes
    2. Jasontherand
      Link Parent
      When the high dam was built in Egypt, they forced around 100,000 people to relocate. Obviously that is different since the land was literally going to disappear into lake Nasser. Also people used...

      When the high dam was built in Egypt, they forced around 100,000 people to relocate. Obviously that is different since the land was literally going to disappear into lake Nasser.
      Also people used to live in houses that were literally inside ancient temples, like Luxor temple, and were forced to relocate so they could restore the temples and open them to visitors. Since they are still finding new moments, that sort of thing still happens, albeit to a lesser extent now. If it is not in a rush to be excavated they just forbid people from repairing or updating their house, eventually pushing people to leave as their house literally falls apart. I doubt they will do that for this situation though, as that can take decades for people to leave.

      3 votes
    3. [2]
      Comment deleted by author
      Link Parent
      1. fefellama
        Link Parent
        Oh definitely rhetorical. I'm fully aware that the wants and desires of a few dozen/hundred/thousand 'average' people today don't mean shit compared to 35 billion dollars. Though I feel the blame...

        Oh definitely rhetorical. I'm fully aware that the wants and desires of a few dozen/hundred/thousand 'average' people today don't mean shit compared to 35 billion dollars.

        Though I feel the blame for this particular situation is more on Egypt than the UAE. Egypt is the one screwing over their own people, while the UAE is just exploiting an opportunity. Just sad, honestly. I feel for the people being evicted from their own homes, and also for the rest of the Egyptian people who I doubt will benefit much from this sale.

        2 votes
  3. skybrian
    Link
    From the article: This is on the Mediterranean sea, west of Cairo. See map. For context:

    From the article:

    Egypt has agreed to a $35bn deal with the United Arab Emirates to develop the town of Ras el-Hekma town on its northwestern coast, Egyptian Prime Minister Mostafa Madbouly announced on Friday after weeks of speculations.

    This is on the Mediterranean sea, west of Cairo. See map.

    Madbouly said at a news conference, which was attended by Egyptian and Emirati officials, that Egypt will receive an advance amount of $15bn in the coming week, and another $20bn within two months.

    For context:

    Egypt, home to more than 109 million people, is grappling with a severe economic crisis, with record inflation and foreign currency shortages.

    In August, annual inflation in Egypt reached close to 40 percent, according to official figures, plunging many Egyptians near or under the poverty line.

    More than half the population had already been below or close to the poverty line before the current crisis.

    Foreign debt has quadrupled, reaching $164bn, over President Abdelfattah el-Sisi's almost 10-year presidency. Debt servicing is currently consuming most of the state's annual expenditures.

    Egypt's total foreign currency reserves are $35bn. According to the Egyptian Central Bank, the ratio of short-term debts to foreign currency reserves in 2022 passed 80 percent, double that of 2021.

    4 votes