Despite issues caused by the coronavirus pandemic, Egypt is pushing forward on the New Administrative Capital with few delays.

1. Egypt Maintains
Momentum with New
Administrative Capital
Development
Dr. Ehsan Bayat

2. Egypt Maintains
Momentum with
New
Administrative
Capital
Development
Like other nations around the world, Egypt has been affected by the coronavirus pandemic,
especially in terms of its real estate industry. However, Egypt’s real estate sector may
experience a speedier recovery than some other countries in the Middle East and North
Africa due to construction of the New Administrative Capital. In addition, the country plans
to move forward with a fourth stage of development of new cities across the nation.The
construction boom is driven in part by Egypt’s rapidly increasing population.
Oxford Business Group has said that these development projects will stimulate the
Egyptian construction industry in the medium term. So far, Egypt has not experienced
significant delays in ongoing projects, which suggests a swift recovery from the economic
downturn caused by the pandemic.
Other signs in Egypt also point to a quick recovery. Employment rates are strong, and
consumer spending has increased sooner than industry experts were expecting.These two
factors are encouraging the real estate industry because they provide confidence that
there’s a market to support the new construction projects.
In Egypt, the private sector has stepped up to play a critical role in the development of
infrastructure. This corporate reaction to the pandemic has helped the country stay on
track in terms of its development goals. Of course, the country had also adopted significant
economic reform initiatives even before the pandemic hit.These efforts put the country in
a strong position prior to the crisis and have continued to boost growth, especially when
taken in the context of favorable demographic expansion.

3. A Closer Look at
Excitement
around the New
Capital City
The Administrative Capital for Urban Development Company began infrastructure work for
the second phase of the New Administrative Capital in September. As part of this second
phase, parcels of land between 1,000 to 2,000 feddans (1,038 to 2,076 acres) in size should
be offered to investors prior to the start of 2021.
The second phase of the new development is a massive project, and its launch is a
promising sign of economic recovery. In the first phase, both Egyptian and international
investors generated significant demand.The country hopes to continue this momentum
during the second phase, which will focus on a 47,000-feddan area (48,786 acres).
According to the current plan, requests submitted for land will be considered early in 2021,
with preference given to projects that require large plots, which will help drive
development.
Several projects from phase one of the development are still under way. For example, a
contract with the Alliance Worldwide Consortium to develop 2.5 million square meters
(about 618 acres or 595 feddans) of land as the Diamond City project is still in progress, as
well as a proposal to develop an integrated project including entertainment, service, and
residential space across 1,000 feddans.
So far, no company developing a project for the New Administrative Capital has changed
master plans or building requirements as a result of the slowdown caused by the pandemic.
The Egyptian government is also moving forward with its own plans to begin transferring
government officials to the new city, albeit with small delays because of the pandemic. In
late August, the government announced 60,000 employees would be transferred. The state
apparatus is set to move to the city in 2021.

4. Promise for the
Future of the
Egyptian Real
Estate Industry
Egypt is also moving forward with many of its infrastructure plans, including the
construction of monorails to facilitate easy transportation within the country’s
borders. Currently, two monorail projects are on the books.The first starts at Nasr
City and stretches for 54 kilometers, while the second starts at Giza and will
encompass 42 kilometers of rail line.
The Nasr City monorail is meant to serve the NewAdministrative Capital and will
have a total of 21 stations upon completion.The project beginning at Giza will
service Sixth of October City with 12 stations.This rail line is designed to serve people
living in the major expansions of Cairo, particularly people living in social housing
projects.With these two projects in the works, another may soon be under way.
Bombardier is spearheading a project that began in Cairo and will run to the eastern
and western outskirts of the metropolis.
This transportation infrastructure will help link communities together and facilitate
business through the New Administrative Capital.The government has designed the
new development as a smart city that integrates cutting-edge technology. With the
second stage of development under way, Egypt is focused on attracting international
brands to participate in the project.
Major corporations like Amazon and Microsoft have been tapped. One of the unique
features of the new city, for example, is the use of a unified card, which will serve as a
debit card and transportation pass and remove the need for cash.The ultimate goal,
according to Egyptian administration, is bringing both national and international
business to the new, 21st-century city—and transforming it into a capital of the
Middle East, not just Egypt.