Egypt’s Midar Investment and Urban Development Company and Dubai-based Majid Al Futtaim inked a strategic partnership agreement on Sunday that will forsee the development of a large mixed-use urban project in New Cairo’s Mada City. This project reinstates New Cairo’s position as a leading destination for mixed-use developments, with other such as the Central Luxury Mixed-Use Project being developed in the region.
Cost
The project has a total development cost that exceeds $3.1 billion. Also, the cost is expected to rise above $4 billion when it reaches full build out.
Egyptian Prime Minister Mostafa Madbouly witnessed the signing at the new administrative capital, alongside Housing Minister Randa El Manshawy, Investment and Foreign Trade Minister Mohamed Saleh, and UAE ambassador Hamad Al Zaabi.
Furthermore, under the agreement, Majid Al Futtaim will develop a 2.3 square kilometre integrated community. The integrated community will be developed within Mada on a revenue-sharing basis.
Phase One
The first phase will cover 840,000 square metres over four years. Additionally, it will include approximately 6,000 residential units. Also, it will have a business district, retail and hospitality components, and hotel units.
Phase Two
The second phase will add a further 1.26 square kilometres. Approximately 252,000 square metres will be earmarked for a shopping and entertainment destination. This will allocated progressively as the surrounding residential areas reach occupancy thresholds.
Midar which is the master developer of both Mada and Mostakbal City in New Cairo, revealed that the deal will generate future revenues exceeding 40 billion Egyptian pounds.
Majid Al Futtaim chief executive Ahmed Ismail states that the partnership marked the company’s “first integration of regional expertise in developing integrated mixed-use residential communities” within Mada.
He noted the company had invested about $2.8 billion in Egypt over 27 years. In this period, during it has created over 226,000 direct and indirect jobs.
Majid Al Futtaim’s Portfolio in Egypt
Majid Al Futtaim’s Egyptian portfolio includes Mall of Egypt, City Centre Almaza, City Centre Alexandria, City Centre Maadi, in addition to more than 100 Carrefour supermarkets and Supeco discount stores.
The deal inked on Sunday is the latest instalment in a deepening pattern of Gulf investment in Egypt. This has reshaped the country’s financing picture over the past three years.
The single most consequential transaction came in February 2024. This was when Abu Dhabi sovereign wealth fund ADQ inked a $35 billion agreement to develop the Ras El Hekma coastal zone on Egypt’s north-western Mediterranean shore. This stands as the largest foreign investment in Egypt’s history.
Additionally, according to state estimates, by the end of the year, Gulf states will have invested between $30 billion and $41 billion in Egypt’s real estate sector. Since 2022, total investment flows into Egypt from the Gulf and other foreign sources have exceeded $102 billion. The flows have not been limited to the UAE.
Saudi Arabia has accumulated about $25 billion in Egyptian assets. Riyadh converted $10 billion in central bank deposits into direct investments and pledged a further $5 billion focused on energy and real estate.
Qatar’s sovereign wealth fund, QIA, has also committed to a $29.7 billion North Coast tourism development. Also, it has signed a $7.5 billion investment package with Cairo.
Mada City Mixed-Use Urban Project Factsheet
Master Developer: MIDAR for Investment and Urban Development
Key Co-Developer (Mixed-Use Destination): Majid Al Futtaim (MAF)
Location: New Cairo, East Cairo, Egypt
Total Master Plan Footprint: Approximately 25 million square meters
Target Population: Projected to home 500,000 residents upon full completion
Initial Partnership Development Value: Over $3.1 billion
Projected Total Built-Out Value: Expected to exceed $4 billion upon full expansion.
Financial Framework: Revenue-sharing model between MIDAR and MAF, with anticipated future returns to MIDAR exceeding EGP 40 billion.
Phase 1 (First 4 Years): Spans 200 feddans (840,000 sqm). Focuses on launching the core residential community, services, and primary infrastructure.
Phase 2: Spans 300 feddans (1.26 million sqm) expanding the residential neighborhoods and commercial districts.
Retail and Leisure Tranche: Encompasses 60 240,000 sqm specifically carved out for a premium integrated shopping and entertainment destination, scaled incrementally based on residential occupancy thresholds.
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