Dubai construction company Arabtec said that it is about to conclude the planning and design stage of constructing a 1m residential units project.
On 9 March, the armed forces, in cooperation with UAE’s Arabtec Construction Company, announced plans to construct 1m 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, which was announced by President Abdel Fattah Al-Sisi, the defence minister at that time, falls under the umbrella of the “For Egyptian Youth” initiative, which Al-Sisi launched prior to announcing his intention to run for president. The initiative aims to address a shortage of low-income housing for young people.
Construction is expected to begin in December 2014, and will be implemented in four stages over the next five years. The $40bn project will be built at 13 locations across Egypt, with the first homes to be delivered in early 2017, according to Reuters.
Egypt’s real estate market is expected to remain “subdued” following recent political and economic turmoil but is predicted to gradually recover in late 2014 and 2015, real estate investment and advisory firm Jones Lang LaSalle said in a recent report.
UAE, the third largest foreign investor in Egypt, was among the Gulf countries that congratulated and financially supported Egypt after the ouster of former president Mohamed Morsi in July 2013. The UAE provided Egypt with $3bn in the form of deposits, grants and petroleum products in July 2013; in October 2013, it had pledged $2.8bn in additional aid to Cairo to implement “development project”, which was later announced as the second economic stimulus package.