The New Administrative Capital for Urban Development Company is currently finalizing the strategic and detailed plans for the second phase of the new capital, while commencing work on some of its components. According to Khaled Abbas, the company's chairman and managing director, the new industrial zone has already been offered for sale, with 70-80% of the available land sold. One of the industrial developers has received their land and started implementation.
The company is reviewing the experience of the first phase when preparing the second phase, with the aim of repeating successful projects and avoiding the creation of projects that are no longer needed. Examples of such projects include the Egypt Mosque, the Cathedral, and the City of Arts and Culture, which serve the entire city. The implementation of the second phase is expected to be easier and less costly, as the major investments in infrastructure and utilities have been completed during the first phase.
The second phase will focus more on completing internal networks and utilities, allowing investments to be directed towards new projects according to the city's needs and development plans. The government is one of the company's main clients, renting several facilities, including the government complex. The financial relationship between the two parties is governed by clear contracts, with the government paying rent, water and electricity consumption, and maintenance costs.
The contracts include calculating interest on any delayed payments, and the company applies these contractual clauses as a commercial entity. The government does not receive different treatment in this regard, and rental and utility obligations are subject to the contracts signed between the two parties. This ensures the organization of the financial and commercial relationship between the company and government entities renting facilities in the new capital.
The lands allocated for investment projects in the new capital, including the iconic tower and towers with foreign investments, are sold according to the applicable frameworks. The company does not provide lands for free. Some of these projects are real estate investments, and the lands are dealt with according to the company's investment rules. The cost of implementing projects at present cannot be compared only to their construction costs at the time of implementation, due to changes in dollar prices, shipping costs, insurance, and geopolitical conditions.
The cost of shipping and insuring some products has increased significantly during the recent period, affecting the costs of implementing investment projects. This makes comparing construction costs in different time periods related to several economic and external variables. The economic return of the new capital is not limited to the value of the lands or the profits achieved by the company, but also extends to providing extensive job opportunities in various sectors.
The number of workers in the new capital projects has exceeded 500,000 workers in various sectors at some point, contributing to an increase in the state's tax revenue. The New Administrative Capital company alone has paid around 37 billion pounds in taxes over the past decade, in addition to the taxes paid by developers and companies operating within the project. The investments made by the company in infrastructure, utilities, and various projects have created extensive economic activity, enhancing the project's economic return at the state level.
Key points
- The New Administrative Capital has sold 80% of its industrial zone lands.
- The second phase of the new capital will focus on completing internal networks and utilities.
- The company's investments have created extensive economic activity, enhancing the project's economic return.
