Egypt strikes a deal with Saudi-based company to injects $124 for housing project

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The government of Egypt has announced that they have reached an agreement to build and establish a large number of housing units, to encourage investment to build medium income units as the country focuses to redeem itself after the ouster of the Islamist President Mohamed Mursi last July.

Egyptian Housing Minister Mustafa Madbouly told reporters that Saudi Arabia would inject $124 million dollars into the Saudi Egyptian Construction Company (SECON), with Egypt contributing 100 feddans (103.8 acres) of land in three cities, worth all about the same amount.

This is after a housing development company owned by Egypt and Saudi Arabia, last week revealed that it was increasing its capital by $245 million, a four-fold rise, to build houses in Egypt in a further sign of support for the country from its key Gulf ally.

Saudi Arabia and its Gulf Arab neighbours, Kuwait and the United Arab Emirates, have given more than $20 billion to help Abdel Fattah al-Sisi, who succeeded Former Islamic president Mohammed Mursi as president last month after the Arabic Uprising in Egypt last  July 2011.

Last week, Saudi King Abdullah stopped in Cairo briefly to meet with Sisi, in a symbolic visit that demonstrated the king’s strong support for the former army chief. This is because Gulf monarchy sees Cairo as a crucial partner against the rise of radical Sunni Islamism in the region.

Arabtec Holding, Dubai’s largest-listed construction firm, agreed with the Egyptian army in March to build one million houses for lower-income households, in one of the region’s biggest projects valued at $40 billion.