Arabtec Real Estate, the executive entity of the million residential units, is currently negotiating with a number of Emirati banks to provide around 200 million dollars to fund the first phase of the project.
Abu Dhabi National and Al Itihad banks are the most significant banks negotiating with Arabtec. Well-informed sources in the banks said that the loans withdrawal will take place in the banks’ branches in Egypt to finance the first phase which consists of 100 thousand units in Obor and Badr cities.
Foreign funding for the project was the main point agreed by both sides- Egyptian government and Arabtec- of the million-unit project agreement after a series of negotiations. The company demanded from the beginning domestic funding from Egyptian banks which was the Egyptian government rejected from its side.
The government defined a profits margin of 7.5% of the project costs. The project defined an execution period for the project of 5 years since the land delivery date.
It’s worth mentioning that Arabtec Company signed an understanding referendum with the engineering authority in the Egyptian Armed Forces to build the million-unit project around 13 new cities in Egypt.