By Amr Adel

Dubai – Mubasher: The Egyptian government is continuing ‘positive’ talks with UAE’s businessman Mohamed Alabbar over the execution of the country’s new administrative capital despite difficulties, said a source familiar with details of the project.

The new ‘administrative capital’ project was announced during Egypt’s international economic summit held in March in the resort town of Sharm El Sheikh.

During the summit, Capital City Partners, which is chaired by Alabbar, signed a memorandum of understanding with the Egyptian government, under which Cairo Capital City was jointly established to carry out the project.

The source, who spoke on condition of anonymity, revealed that the two parties reached agreement on some disputes that stalled talks in recent period. The source expects a final agreement to be reached with Alabbar to carry out the project.

The UAE businessman stipulates that Egypt’s ownership in the project be lowered to 20% from 24%.

Phase one in the new capital is estimated to cost around $45 billion, while the project’s overall value was projected by Alabbar to exceed $300 billion.

Translated by Sayed Abdel Rahman