Arabtec to start on $40bn housing project in Egypt

Arabtec to start on $40bn housing project in Egypt

Dubai-based construction giant Arabtec will begin work the first 120,000 homes of its enormous $40 billion housing development project in Egypt on February 1.

Plans for the project were announced in March 2014 by Egypt’s Armed Forces and Arabtec and covers the construction of one million residential units for low-income youth on land provided by the Armed Forces. The contract marks one of the largest construction initiatives in the Arab region in the past three years.

The project will be built in four phases in 13 locations across Egypt over the next five years.

Work on the project was delayed Arabtec had previously said the first homes in the project backed by both the Egyptian and UAE governments would be delivered in early 2017, with the whole project to be completed by 2020.

Arabtec endured a period of turmoil in mid-2014 as the sudden resignation of Hasan Ismaik in June undermined the growth prospects of the company.

But Egypt’s housing minister Mostafa Madbouly told reporters late last year that he believed that would only have a minor impact on the project’s delivery, seen as vital in easing the country’s housing shortage in a state that has experienced major political and economic upheaval in recent years.

“The process slowed down a bit with the changes in the board but now we have a new board and are starting active negotiations with Arabtec,” the minister told an investment event in Abu Dhabi.

“I think what happened with Arabtec will only delay things one month or two but it won’t be a big delay,” he told reporters

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