What is Egypt's New Administrative Capital (NAC)?
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Egyptians are like their Pyramid building ancestors, they like to think big...even in the 20th century with Gamal Abdel Nasser's pan-Arabist vision of a United Arab Republic (UAR) combination with Syria, which ultimately did not work out.
As the center of Mideast economic development since Arab Oil Embargo crises of the 1970s and especially the 1990s has shifted from Egypt and the Levant to the Gulf states, the example of the Emirati cities with their steel and glass towers, quality jobs and amenities that have drawn millions from all corners of the globe has captivated Egyptian modernizers.
Egypt's current capital Cairo has sprawled and become severely congested in recent decades, adding millions of new inhabitants with the overall Egyptian population surpassing 100 million. The vast majority of Egyptians live along the Mediterranean coast, the Red Sea Riviera with its tourist hubs or as their ancestors did from time immemorial, along the sliver oasis of the Nile. Which like the Pyramids, is visible to the cosmonauts' naked eyes from orbit. Building a new New Capital like the Emiratis did with Abu Dhabi has clearly become an urgent need for this country and a high priority for the Egyptian state.
Therefore we asked Cairo native Ahmed to provide foreigners with an introduction to the New Administrative Capital (NAC) of Egypt, explaining what it is and what the government's goals are in making the desert bloom into this new 21st century hub more than 28 miles (45 kilometers) east of Cairo.
-- James Smith
Editor-in-Chief and Publisher, ExitStrategy.World
April 9, 2024
OpenAI Art of the New Administrative Capital of Egypt's suburbs rising from the desert
Since the middle of the 20th century, Egypt had intentions to develop, or rather expand, new districts to the city of Cairo. This is not new news, as since the emergence of Cairo it was always continually developing and had “new” capitals. The ancient city of Fustat that was developed by the Arabs, with new districts and areas--Madinat al Askar for example--being added to it, thus developing the massive urban conglomerate that we know of today.
The New Administrative Capital (NAC) of Egypt is a grand project that aims to alleviate the congestion of Cairo and provide a modern administrative hub for the country. Strategically located around 45 kilometers east of Cairo, between Cairo and the Suez Canal, the New Capital sits on a vast expanse of desert land.
One of the notable landmarks of the New Capital is the iconic Central Business District (CBD), which will serve as the heart of the city's economic activities. This district is planned to house towering skyscrapers, luxurious hotels, and high-end shopping malls, making it a symbol of 21st century modernity and prosperity.
Another prominent feature of the New Capital is the government district, which will host the headquarters of various state ministries and administrative buildings. This area will be meticulously designed to reflect the grandeur of Egypt's governance and will include landmarks such as the Presidential Palace and the Parliament building.
Additionally, the New Capital will boast extensive green spaces and recreational facilities, including parks, man-made lakes, and sports complexes, providing residents with a high quality of life amidst the desert landscape.
Foreign Investors from the Gulf Countries: Overview of Announced Saudi/UAE Investments
The New Capital has attracted significant interest from foreign investors, particularly from the Gulf countries such as Egypt's closest allies, Saudi Arabia and the United Arab Emirates (UAE). Both Saudi Arabia and the UAE have announced substantial investments in various projects within the New Capital, ranging from infrastructure development to real estate ventures.
Saudi Arabia, through its Public Investment Fund (PIF), has pledged billions of dollars to support the development of the New Capital. This investment encompasses diverse sectors, including housing, transportation, and energy, demonstrating the Saudis' commitment to Egypt's economic prosperity.
Similarly, the UAE has shown keen interest in investing in the New Capital, with prominent Emirati companies participating in infrastructure projects and real estate developments. This investment reflects the strong bilateral relations between Egypt and the UAE and underscores the UAE's confidence in the potential of the New Capital as a thriving business and investment destination.
Residential and Mixed Use Real Estate in the NAC
Investing in residential or mixed-use properties in the New Capital offers lucrative opportunities for both domestic and foreign investors. The city's master plan includes the development of modern residential communities equipped with state-of-the-art amenities and infrastructure.
For investors interested in residential properties*, various options are available, including apartments, villas, and townhouses catering to different preferences and budgets. These properties are designed to meet the growing demand for housing in Egypt and provide residents with a comfortable and convenient lifestyle.
Mixed-use developments are also gaining traction in the New Capital, offering a blend of residential, commercial, and recreational spaces within the same complex. These projects appeal to investors seeking diversified investment opportunities and aim to create vibrant and self-sustaining communities.
Investing in residential or mixed-use properties in the New Capital typically involves thorough market research, due diligence, and consultation with reputable real estate developers and agents. Understanding market trends, regulations, and investment potential is essential for making informed investment decisions and maximizing returns.
*Note: Residential districts include R1 to R8, with the total number of units between R1 and R2 combining into 48,000 residential units, and the area zoned from R1 to R8 consisting of 6 to 7 thousand acres (these numbers may vary in the future). Different districts are also constructed in world-architectural styles, with some districts made in the Parisian style of residential buildings and others constructed according to local and Arab influences.
Incentives for Industrial Investment in the NAC 'Promzones'
The New Capital includes designated industrial zones aimed at promoting economic diversification, fostering innovation, and attracting industrial investments. These industrial areas offer strategic advantages, including proximity to major transportation routes, access to utilities, and supportive government policies.
Investing in industrial areas of the New Capital involves fulfilling certain requirements and procedures set forth by the Egyptian government and relevant authorities. These requirements may include obtaining permits, licenses, and approvals for establishing and operating industrial facilities.
Key considerations for investing in industrial areas of the New Capital include:
Legal and Regulatory Compliance: Investors must comply with local laws, regulations, and environmental standards governing industrial activities. This may involve obtaining permits for land use, environmental impact assessments, and compliance with health and safety regulations.
Infrastructure and Utilities: Industrial investors need access to reliable infrastructure and utilities, including electricity, water, telecommunications, and transportation networks. The New Capital's industrial zones are planned to be equipped with modern infrastructure to support industrial activities.
Investment Incentives: The Egyptian government may offer various incentives and support mechanisms to attract industrial investments, such as tax incentives, customs exemptions, and streamlined administrative procedures. Investors should explore available incentives and assess their eligibility to maximize investment returns.
Market Demand and Feasibility: Before investing in industrial activities, investors should conduct market research to assess demand, competition, and feasibility of their proposed projects. Understanding market dynamics and potential risks is crucial for making informed investment decisions.
Overall, investing in industrial areas of the New Capital presents promising opportunities for investors seeking to capitalize on Egypt's growing industrial sector and leverage the city's strategic location and supportive business environment. By adhering to regulatory requirements, leveraging incentives, and conducting thorough due diligence, investors can position themselves for success in the dynamic landscape of the New Capital's industrial zones.