The new BRICS members Egypt and the United Arab Emirates (UAE) signed a historic $35 billion urban development deal on Friday. Egypt agreed to shell out $35 billion to the UAE allowing the country to develop the town of Ras el-Hekma, reported Bloomberg.
The Prime Minister of Egypt Mostafa Madbouly confirmed the deal at a press conference attended by Egyptian and Emirati officials. The deal makes it the largest foreign direct investment in an urban development project in Egypt’s modern history.
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BRICS countries are inking new partnerships which was never heard of at any point in time previously. The country will receive an advance amount of $15 billion in the coming week, and another $20 billion within the next two months.
Egyptian business tycoon Naguib Sawiris hailed the agreement as pathbreaking citing it would lead to job creation. The deal leads to “attracting foreign currency, creating jobs, and stabilizing the exchange rate,” he said. However, the deal comes with a share of criticism as Egypt’s opposition party said that the government must allow local investors to develop the coastal town of Ras el-Hekma.
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BRICS: Egypt & UAE Seal $35 Billion Urban Development Project
The BRCIS member UAE will develop its counterpart Egypt’s coastal town of Ras el-Hekma with international standards. The urban development project will change the way Ras el-Hekma looks and operates in the coming few years. The UAE is well-known for how it transformed its country and will apply the same standards to Egypt’s Ras el-Hekma.
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The BRICS alliance members could begin forging new partnerships and trade deals ushering into a new era of bilateral ties. If they begin to use local currencies for these new trade deals, the US dollar will be in jeopardy. Read here to know how many sectors in the US will be affected if BRICS ditched the dollar for trade.