Arabtec has signed a memorandum of understanding (MoU) with the Ministry of Defence and Military Production of Egypt, to develop and build one million units of middle-income housing in several locations across the country.
Under the MoU signed on behalf of the Egyptian Government, Arabtec's subsidiaries will develop and construct the residential communities in 13 locations across Egypt in various governorates with an overall land area of over 160 million m².
Of the total land area, 149 million m² will be in the Cairo governorate and the remaining area will be divided between the governorates of Alexandria, Maanoufiyah, Fayyoum, Bani Suwaif, Al Menyah, Asyout, Souhag, Qana and Luxur.
The overall built area of the residential communities will be more than five million m², and the project has an overall development value of EGP280bn ($40bn).
The developments will give Egyptians access to fully fledged communities with public amenities, such as schools, hospitals, parks and places of worship.
Arabtec Real Estate will undertake the development of the project, which will be developed in phases over a span of five years.
Arabtec Egypt for Construction will undertake the construction work of the project, which is anticipated to create over one million jobs for Egyptians.
Construction work is due to start in the third quarter of this year with the first batch of units planned to be delivered in early 2017, while final delivery is anticipated to take place before 2020.
Arabtec managing director and CEO Hasan Abdullah Ismaik said that the Egyptian market holds high potential, particularly in the affordable housing sector, and that the company is determined to take advantage of the opportunities by launching several projects that will help meet the demand for housing units in the country.
"We believe the Egyptian economy is poised for a significant rebound, particularly with the current governmental policies geared towards encouraging investment in the property development sector," Ismaik said.
Image: Field Marshal Abdel Fattah Al-Sisi and MD and CEO of Arabtec, Hasan Abdullah Ismaik, review development plans. Photo: courtesy of PR Newswire.