posted
Gulf investors to form $1b firm for projects in Egypt
08 August 2006
Dubai: A consortium led by Abu Dhabi investment firm National Holding and Egypt, have signed an agreement to start a new holding company to develop $30 billion (Dh110 billion) worth of projects in Egypt.
The company is being set up with a capital of $1 billion to fund the country's transportation infrastructure such as roads, bridges, ports, and rail networks.
Companies in the consortium include Bahrain-based Gulf Finance House and Abu Dhabi Investment House (ADIH).
The agreement was signed in Cairo by three authorities General Authority of Roads, Bridges and Land Transportation, Egyptian National Rail Authority and Port Said Port Authority in the presence of Prime Minister Ahmad Nazif and Transport Minister Mohammad Loutfi Mansour.
The new company, which was not named, plans to start building roads within the next six months.
Mansour said the holding company would set up companies to develop projects on a build-own-operate-transfer basis and provide services in ports.
They might also build new electric railways to connect Egypt's new cities with the capital, which Mansour said would ease congestion and promote urban development.
"There is tremendous investor interest from the Arab world in Egypt's transport sector recently and we are looking at more partnerships," Mansour said in a statement issued by National Holding.
Abu Dhabi Investment Authority (ADIA), the government's international agency, is believed to have invested about $400 million in Egypt in telecommunications, cement, agriculture and finance.
"We are confident that our entry into Egypt will further strengthen relationship between the UAE and Egypt," said Jawaan Al Khaili, chairman of National Holding and ADIH.
Set up in 1999, National Holding is a major stakeholder in National Bank of Abu Dhabi, Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank.
"We see tremendous economic growth prospects in Egypt as the country is in the midst of a growth trail with IMF predicting that the economy will grow at 5.3 per cent in 2006," ADIH chief executive officer Rashad Janahi said.
ADIH's investment portfolio includes Beirut Gate, The Lagoon in Bahrain and instruments such as Al Arabi Private Equity Fund and a German property fund. It had also participated in the private placement of Energy City Qatar, raising $100 million exclusively from the UAE market.
Dubai's Emaar Properties is among other UAE firms investing in Egypt. Emaar plans to build a $1.74 billion tourist resort on Egypt's Mediterranean coast.
build up our infastructure for the people, you can build yourself a resort on the med. only time will tell if this is an even exchange.Posts: 991 | From: My daughter is a stalker | Registered: Jul 2006
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