Photo: Nikola MitićIf the pyramids are your first association with Egypt, then you are definitely living in the past. Or you haven't been to Egypt recently. The capital transformation of Egypt, which has been intensively implemented in recent years in all fields and especially in the sector of the development of new cities, is already giving it the outlines of the country of the future. We talked about the new cities of the fourth generation, ambitious economic reforms, relations between our two countries, and potential Egyptian investments in Serbia with H. E. Bassel Salah, the Ambassador of the Arab Republic of Egypt in Serbia.
H.E. BASSEL SALAH
Egypt, which is now developing up to 21 cities around the country in light of the country's anticipated population rise from 100 million to 180 million, has undoubtedly been the global real estate industry's hotspot in recent years. Can this massive construction plan even be summarized in one answer?
Egypt is implementing a number of mega projects, including dozens of fourth-generation cities across Egypt—from New Alamein and New Mansoura on the Mediterranean coast to New Luxor in the south of Egypt—during the past few years, aimed at modernizing the different areas within the country. Egypt’s new cities feature the newest architecture, built on sustainable and green infrastructure, and connected through multi-modal transport networks. These new cities are powered by renewable energy and smart technology.
An example of the new cities is the New Alamein, which is one of the most ambitious of Egypt’s smart cities, covering 50,000 acres and with a proposed population of 3 million. It is being styled as Egypt’s “Gate to Africa” and combines tourist, residential and historic sectors. The city’s distinctive features include Al-Alamein Towers, a series of 170-meter skyscrapers which will be the tallest on the Mediterranean coast.
AL-ALAMEIN TOWERS, A SERIES OF 170-METER SKYSCRAPERS / PHOTO:EGYPT PREMIUM PROPERTIES
The New Administrative Capital of Egypt (NAC), which has been under development for seven years, certainly attracts the most attention. Has this high-tech city already come to life and what does it already include in terms of buildings and future landmarks?
New Cairo capital city is located 45 KM east of Cairo covering an area of 170,000 acres. Regarding the unique geographical location, it is nearby the Suez Canal area, regional roads, and main axes. The population targeted during the first phase is nearly five million people. It is planned to transfer many ministries, embassies and government agencies to their new headquarters in the New Administrative Capital.
The NAC includes the areas of the conference centre, the exhibition city, the government district (including 18 ministerial buildings, a parliament building, a presidential institution building, and a cabinet building), the residential district (25,000 housing units), the airport, the medical city, the sports city, the central park and the entertainment city as well as the city of culture and art (122 acres, including Opera House, Music Theatre, The Capital Museum and the Central Library).
NAC IS LOCATED 45 KM EAST OF CAIRO / PHOTO:DAR.COM
NAC will be a 100% smart city. How sustainable, energy efficient, and, in general, green, will it be?
A new vision for urban living in the 21st century is taking shape. The New Administration Capital (NAC) sits at the heart of Egypt’s smart cities program. Strategic communications, modern transportation systems and renewable energy supplies are central to the smart cities program. When it comes to infrastructure, plenty of work has been happening to connect cities. This is crucial for the transportation of people and business to ease and facilitate connectivity. What is happening now in transportation—high-speed lines, monorails, trains, buses—is a complete change. The same goes for energy, digital and telecommunications. The powering of the NAC and the new cities in Egypt will be made easier by Egypt’s progress in expanding its clean energy supply. Its Integrated Sustainable Energy Strategy has set a renewable energy target of 42% of total generation by 2035—rapidly going from “deficit to surplus” as an electricity provider.
NAC WILL BE A 100% SMART CITY / PHOTO:EGYPTTODAY.COM
Egypt will host the 2022 UN climate conference (COP27), in November in Sharm El-Sheikh. What is your country's national climate strategy and what are the main climate-related projects that Egypt has already undertaken?
Egypt’s vision includes the importance of a united world in facing the climate change challenge through an urgent, ambitious, equitable, transformative, and holistic manner based on science and principles, aiming for a just transition to low-emission and climate resilient pathways and a sustainable future for all. There is an urgent need to shift from pledges and potential contributions to delivery and implementation through timely and holistic actions at scale. Internally, Egypt has initiated serious steps to apply a sustainable development model, at the heart of which lies adaptation to climate change. This model aims for government-funded green projects to reach 50% by 2025 and 100% by 2030. The sources of renewable energy represent around 20% of the energy mix in Egypt today, with the aim of upgrading it to 42% by 2035, coinciding with the rationalization of energy subsidies. To place these efforts within their institutional framework, Egypt has completed the preparation of a national strategy for climate change 2050, which will pave the way for Egypt to update its Nationally Determined Contributions (NDCs) so that the policies, objectives, and measures encompassed in these contributions become integral to the state’s developmental efforts.
THE NEW PARLIAMENT BUILDING IN THE NAC / PHOTO:SMARTCITYEG.COM
Egypt is one of the world’s fastest-growing economies, with predictions to become one of top ten global economies by 2030. What serves as the foundation of this ambitious economic growth strategy?
Egypt started an ambitious economic reform program in 2016, including integrating social welfare programs and redirecting subsidies to the neediest categories of society who deserve them the most. In addition, the "Sustainable Development Strategy: Egypt’s Vision 2035" is a pivotal pillar of its economic growth. Egypt’s vision aims at achieving a balanced sectoral development with a main focus on multi-sectoral domains, among them the communication and information technology ICT.
The International Monetary Fund's (IMF) consecutive reports showed a remarkable improvement in the economic conditions in Egypt since the beginning of the reform program, including the liberalization of the exchange rate, acceleration of growth rates, reducing the external and financial deficit, and increasing foreign currency reserves. In April 2022, Fitch affirmed Egypt’s rating at B+, praising its large economy with robust growth and strong support from bilateral and multilateral partners. More than 15% of the Egyptian economy is directly related to the construction sector.
Due to its strong economic fundamentals and the economic reform program adopted in 2016, the government was able to act swiftly to mitigate the impact of the COVID-19 pandemic. Egypt was also the only North African nation showing a positive real GDP growth rate in 2020.
THE NEW MANSOURA PROJECT / PHOTO:ESCGA.COM
Egypt is considered the most attractive investment destination in Africa. What is the main focus of foreign investors?
The government is working to attract investment in several mega projects, including the construction of the NAC, and to promote mineral extraction opportunities. Egypt is also capitalizing on its location bridging the Middle East, Africa, and Europe to become a regional trade hub and an investment gateway and energy hub, and hopes to attract information and communications technology (ICT) sector investments for its digital transformation program, in addition to the Suez Canal Economic Zone project, aimed at establishing a logistical and industrial zone at the Suez Canal.
Egypt is a party to more than 100 bilateral investment treaties, including with the United States. It is a member of the World Trade Organization (WTO), the African Continental Free Trade Agreement (AfCFTA), and the Greater Arab Free Trade Area (GAFTA). The mentioned Free Trade Agreements represent great potential for companies interested in investment in Egypt.
The Government of Egypt has taken a number of measures during the past years to enhance the investment climate by simplifying procedures and laws for local and foreign investors, in addition to reviewing and amending old investment laws in line with the size of the capabilities and opportunities that Egypt can offer to foreign investors, which led to an acceleration of the pace of company establishment in Egypt.
For these reasons, Egypt was one of the fastest-growing emerging markets prior to the COVID-19 outbreak. Egypt was also the only economy in the Middle East and North Africa to record positive economic growth, despite the COVID-19 pandemic. Increased investor confidence and the reactivation of Egypt’s foreign exchange (FX) market have attracted foreign portfolio investment and increased foreign reserves.
Diplomatic relations between Egypt and Serbia are at an extremely high level, as evidenced by the recent visit of Egyptian President Abdel Fattah Al-Sisi to Belgrade. What are the economic relations between our two nations, and where is the greatest potential for improved cooperation?
The recent visit of H.E. President Abdel Fattah Al-Sisi, President of the Arab Republic of Egypt to Serbia, which took place from July 19 to 22, 2022, is considered an indicator of fostering our friendly ties and the keenness of both countries to give a strong push to bilateral relations in all spheres. The visit was not only historic because it was the first by an Egyptian leader to Serbia for more than 35 years, but also essential to lay a solid foundation for cooperation between many institutions from both sides to build and sustain a successful strategic partnership. The visit witnessed the signing of 12 Memorandums of Understanding covering many fields.
The visit witnessed the inauguration of both the bilateral business forum and the joint Egyptian-Serbian business council, which gave many Egyptian and Serbian businessmen the opportunity to discuss and discover the promising areas of cooperation and start a new phase of bilateral economic cooperation between Egypt and Serbia. Both sides realize the great potential for economic cooperation between the two countries. Therefore, both countries seek to intensify trade relations by negotiating a Free Trade Agreement that will ease bilateral trade and increase its volume. As for the domains of economic cooperation, the most prominent domains include agriculture, construction and infrastructure, trade, ICT, etc.
How appealing is Serbia to Egyptian investors, particularly in the real estate sector, which has recently experienced rapid growth?
Egypt has a number of construction companies that have shown great potential during the implementation of the ongoing mega projects in Egypt, both in the residential and infrastructure domains. These companies are well known for their abilities to deliver an ultra high-end quality outcome with low-medium costs and in a short period of time, taking into account that some of these companies implement projects abroad.
Due to the growing expansion of the construction market, Serbia is considered one of the outstanding residential markets for real estate investments during the current period. Thus, Egyptian firms will find the Serbian market appealing, particularly in light of the Serbian government's policy of expansion and development, as well as the incentives provided to foreign investors.
THE NEW ALAMEIN IS BEING STYLED AS EGYPT’S GATE TO AFRICA / PHOTO:NAWY.COM
Egypt is one of the moste popular travel destinations in the world, including for Serbian citizens. The tourism sector occupies a special significance for the Egyptian economy due to its high growth rates. Can you name some of the most significant new investments in tourism?
The tourism industry remains one of the main sources of national income for any tourist country like Egypt, and as a result, Egypt always pays great attention to developing the tourism sector and welcoming local and foreign investments in this sector. Egypt is listed as one of the first top destination in the travel plans of most travel agencies and adventurers not only because of its monumental sites but also its blissful climate throughout the whole year and its geographical location. Another advantage for travel and adventure lovers that can never be found in any other country other than Egypt is that it combines numerous types of tourism that will meet all the requests of any tourists. The most common type of tourism in Egypt is, of course, cultural tourism, which is related to visiting ancient monumental destinations to observe the timeless treasures of the ancestors. In addition, there are many other types that encourage travelers to select Egypt as their top destination, such as religious tourism, recreational tourism, medical tourism, desert tourism, eco-tourism, and diving and sea activities tourism.
You've been an ambassador in Belgrade for six months. How much did you manage to get to know Serbia and Belgrade so far, and what did you like the most?
Since I arrived in Serbia in February 2022, I have visited a number of cities for both work and leisure, and I found Serbia to be an amazing country with astounding nature and many sights to visit. The most valuable treasure in Serbia is its people, and their hospitality, warm welcome and profound respect for Egypt. My family and I are spending an exceptional time in Serbia and in Belgrade. At the moment, we could not have hoped for a better destination to live in.
By: Gordana Knežević Monašević
Photo: Nikola Mitić
