LIVING "By the Real Estate Leaders" Summer 2015 - Issue #6 | Page 9

It was also announced that founder and chairman of Emaar Properties,
Emirati businessman Mohamed Alabbar’s company Capital City Partners
would be involved in the planning and development phases of the
project.
In addition to public sector services, the capital will be equipped to
house up to five million people, with 211 residential districts and 25
dedicated districts. According to a report by The Guardian, that would
make it the “largest purpose-built capital in the world.”

An Uncertain Future
Just one month after the announcement of the new capital, President
Abdel Fattah El Sisi announced that the government lacked sufficient
funds to carry out the project today, although it is not clear if it will be
carried out at a later stage. Al-Ahram daily newspaper quoted El-Sisi as
saying that the government’s priority is improving the standard of living
and creating housing for limited income families. The report noted that
establishing a new administration capital at this time would consume
government resources that could be better spent on low-income
housing.
Since then, Housing Minister Dr. Mostafa Madbouly has made various
statements that the Ministry will proceed with the new capital as
planned with the support of the private sector; it is still not clear if the
project will be completed within the timeframe that was initially
proposed, although news sites have reported that contractors are
currently being certified to work on the project.
In fact, aside from ministerial updates on the project, the government
has said little about the project since the initial announcement, and it
appears as if they are keeping a tight lid on communications for now.

Critics and Supporters
The initial announcement created a controversial divide, with some
lauding it as the solution to Cairo’s overcrowding, while others criticized
as an unrealistic and costly alternative. The bold move would transfer
Egypt’s capital from Cairo for the first time in over 1,000 years.
Critics of the project have leveled on the exorbitant cost, which is
estimated to be as high as USD 45 billion for the first phase (equivalent
to a little over EGP 340 billion). Others doubt whether the first phase will
in fact be completed with in the planned 5-7 years.
Other critics have noted that establishing a new capital outside of Cairo
will not necessarily resolve the capital’s current challenges, which
include overcrowding and unplanned growth.
The plan, while ambitious, has many merits; while critics have been
quick to point out its potential weaknesses, others have noted that
moving government buildings to the new capital will in fact make it
feasible for residents to move there rather than commuting daily. By
providing jobs, services, and recreational facilities, the new capital may
in fact ease some pressure off of Cairo.
Additionally, the New Suez Canal project, which promises to pump new
investments to the city of Suez and the surrounding areas, would
strategically position the new capital between trade routes in the north
and Cairo in the south.
Whether this ambitious and promising new project proceeds