The New Administrative Capital for Urban Development Company has seen its investments and assets valued at between 600 to 800 billion pounds. This valuation reflects the added value since the project's inception. The company's chairman, Khaled Abbas, stated that this value ultimately belongs to the state as the company's owner. The goal was to maximize returns on state investments and convert unproductive desert land into high-value assets.
Over the past decade, the company has invested over 220 billion pounds in infrastructure and various investments. These investments were financed through the company's returns and self-generated resources, without additional funding from the state, Ministry of Housing, or Urban Communities Authority. This approach has enabled the company to maintain financial independence.
The rise in land prices within the new capital is attributed to the added value from the implementation of utilities, services, and basic infrastructure. This has enhanced the investment value of the company's assets. Khaled Abbas emphasized that the company has no loan portfolio and does not receive financing from the government, banks, or the Urban Communities Authority.
The company relies entirely on its available liquidity to manage investments. It allocates a portion of its liquidity and reinvests the remainder in new projects. With interest rates reaching approximately 30%, the company finds borrowing unattractive. However, it may consider partial financing for future projects if interest rates change.
The company's initial capital was around 8.5 billion pounds, and it has not received additional funding from the state, government, banks, or Urban Communities Authority. Instead, it has financed its investments through its own resources. Over the past decade, the company has invested over 220 billion pounds, entirely from its returns, and has made decisions to increase capital through general assemblies and reinvested profits.
The New Administrative Capital project aims to transform desert land into a productive and economically viable area. The company's strategy focuses on self-financing and maximizing investment returns. This approach has contributed to the project's progress and growth.
The company's financial independence and investment strategy have enabled it to drive the development of the new capital. With a focus on sustainability and growth, the company continues to invest in infrastructure and services. The project's success is expected to have a positive impact on Egypt's economy and urban development.
Key points
- The New Administrative Capital's investments and assets are valued at up to 800 billion pounds.
- The company has invested over 220 billion pounds in infrastructure and various investments over the past decade.
- The company relies on its own resources and does not receive financing from the government or banks.
