The Muslim country of the world became poor, which is a friendly country of India, ‘sold’ its city to UAE

Egypt is currently facing a major economic crisis. Egypt is struggling to come out of this. Meanwhile, Egypt has received a major support from the UAE. Egypt signed a historic multibillion-dollar deal with the UAE for a massive urban, trade and tourism hub on the northern coast. Under this, a modern city Ras El Hekma will be constructed at a cost of billions of dollars. A $35 billion deal was finalized to buy this coastal city. The agreement was signed by Egypt’s Housing Minister Assem Al-Gazzar and UAE Investment Minister Mohammed Al Suwaidi.

Egyptian PM Mustafa Madbouly said that the UAE will pay $15 billion in advance. Will pay the rest in two months. According to Madbouli, the deal is the largest foreign direct investment (FDI) in an urban development project in the country’s modern history. The city will include residences, tourist resorts, schools, universities, an industrial zone, a central financial and business district, an international marina for tourist yachts and an international airport. Regarding the future of the people here, Madbouli said that they will be shifted to other areas. They will be given financial compensation. He said that this project will reduce the economic crisis of the country.

Egyptian currency falls

Ras al-Hikma is about 200 km west of Alexandria. This is a rich tourist area, famous for its white sand beaches. Egypt is mired in a slowly growing economic crisis, with foreign exchange reserves continuously depleting. Due to this, there is pressure on the Egyptian pound and local businesses. Inflation reached a record last summer. The debt burden is increasing. At the same time, the revenue of Suez Canal is decreasing due to attacks on ships in the Red Sea by Yemen’s Houthi rebels.

Expecting a deal from IMF

Egypt had signed a $3 billion financial assistance deal with the IMF in December 2022. But Egypt delayed adopting a flexible exchange rate system and sold government assets slowly, due to which the deal could not be finalized. The IMF said on Thursday that talks with Egypt to boost the loan program are making excellent progress. It said Egypt needed a larger aid package to deal with economic challenges coupled with the pressure of the war in Gaza.