An official source in the coalition that includes the group “Al-Shafar” announced. Emirati and the companySaudi Arabia Egyptian For Construction, withdraw from the implementation of the project to develop the distributed land “National Party” overlooking the River Nile in the center of Cairo, due to the high implementation costs due to the recession in the value of the Egyptian pound earlier this year.
In March of last year, the Egyptian government awarded the project to develop this landfront and “Nilos” for residential services.
The official said the withdrawal of the Gulf coalition from the National Party’s land development project in partnership with the Sovereign Wealth Fund of Egypt is due to the high construction costs due to the recession. recently in the value of the Egyptian pound, according to the “Al-Sharq. Bloomberg website”.
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He explained that the special ratios for the partnership were based on the assessment of the price of the land to buildings, but the reduction in the value of the pound and the increase in the prices of raw materials and energy had an effect on the ratios that.
The project aims to build two towers; One is a hotel with a height of 75 floors and includes hotel, administrative and commercial units, and the other is a residential building with a height of 50 floors and includes 446 luxury residential units.
In September 2020, the Egyptian government added the land of the National Party overlooking the Nile River, with an area of about 16.5 thousand square meters, to the “Sovereign Fund of Egypt,” after years of dispute between the Ministry of Antiquities and the Cairo Governor over the ownership of this land.
The reason is currency depreciation
In the last two years, Egypt has been experiencing significant fluctuations in the exchange rate between the official and parallel markets, which has affected several sectors, including the real estate development sector, prices raw materials, and a parallel market for these materials.
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With the government allowing the value of the pound to depreciate in March last year, and its price remaining stable against foreign currencies since then, the prices of construction materials and production output began to decrease. The project was allocated with a single approval system according to the Investment Law, which includes the establishment, operation and management of the project, including building permits.
In 2014, the government agreed to demolish a “National Party” building near Tahrir Square in central Cairo. This building was built in the early 1950s by the engineer Mahmoud Riad, who also built the Tahrir Complex between 1951 and 1952.
2024-08-28 13:35:49
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