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Arabtec Chairman in Cairo in days to resume 1m-unit project talks

Arabtec Chairman in Cairo in days to resume 1m-unit project talks
Photo Credit: Arabianeye-Reuters
Arabtec Holding
ARTC
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By: Amr Fouad

Dubai – Mubasher: An informed source has said that negotiations between the UAE’s Arabtec Holding and the Egyptian government, regarding the one-million-unit housing project, have not been halted and are ongoing.

News sources reported on Sunday that the housing project was at a temporary halt as Arabtec did not approve the Egyptian government’s conditions.

The source who spoke on condition of anonymity told Mubasher that Arabtec’s Chairman will arrive in Cairo in two days to resume negotiations with the Housing Ministry and the New Urban Communities Authority (NUCA).

The cost of delivering utilities to the project is among the top priorities for both parties, the source said, adding that the final agreement between the Housing Ministry and Arabtec entails that the ministry deliver utilities to the project in exchange for a number of units.

Any increase in the cost of utilities will result in Arabtec incurring losses, the source noted, indicating that Arabtec seeks to support the Egyptian economy; however, this support must be in-line with an investment framework that guarantees that the company does not incur losses.

Arabtec is directly negotiating with the Egyptian Housing Ministry and NUCA without a third party being present, the source highlighted.

Sources previously informed Mubasher of the final selling prices in the one-million-unit project. The prices which Arabtec offered are lower than that of the Egyptian government, the sources had said, adding that the prices were final.

The Egyptian government had signed a contract with the UAE construction firm to implement a project for one million residential units at an expected total cost of $40 billion (EGP 280 billion).

Arabtec’s capital amounts to AED 4.4 billion, divided on 4.4 billion shares at par value AED 1 per share.

 

Translated by: Nada Adel Sobhi