Majid Al Futtaim Intends to Invest $3.4 Billion in Egypt Over Five Years

Majid Al Futtaim Group intends to invest approximately $3.4 billion in Egypt over five years, an amount exceeding the total $2.8 billion injected by the group in the country over 27 years, according to Enterprise AM.

About $3 billion will be allocated for the 'Mada City' project east of Cairo, which the group is developing in partnership with 'Medaar', with initial work expected to begin within 12 to 18 months. Additionally, $400 million is earmarked for projects adjacent to 'Mall of Egypt' in west Cairo.

Khalifa Bin Braik, CEO of Majid Al Futtaim Asset Management, stated that the 'Mada City' component represents the group's first venture into residential development. This shift signifies the group's expansion from shopping malls and entertainment, for which it is known, into housing and broader real estate investment.

The allocated amount represents a major boost for the Egyptian real estate development sector, as it drives contracting work and construction materials while creating direct and indirect job opportunities. It also signals to Gulf and foreign investors that the Egyptian market remains capable of attracting significant capital for long-term projects.

What do these terms mean?

Foreign Direct Investment: Injecting funds into projects within another country along with management and operation, not just buying shares. Real Estate Development: Constructing residential or commercial projects and selling or leasing them. Joint Venture: Collaboration between two companies to establish or develop a project and share its profits. Capital: Funds allocated for investment in a project.