Majid Al Futtaim and MIDAR Sign US$3.1 Billion Partnership for a Mixed Use City in New Cairo
The UAE’s Majid Al Futtaim has signed a strategic partnership with Egypt’s MIDAR for Investment and Urban Development to build a large mixed use destination with a total development value of US$3.1 billion within Mada City, one of east Cairo’s largest master planned developments. Majid Al Futtaim, present in Egypt for 27 years in retail and entertainment, describes the project as its first residential development in the country.
The agreement was signed on 21 June at the Egyptian Cabinet headquarters in the New Administrative Capital, under the patronage of Prime Minister Mostafa Madbouly and in the presence of the Minister of Housing, the Minister of Investment and Foreign Trade and the UAE Ambassador to Egypt. It was signed by Ahmed Galal Ismail, Chief Executive Officer of Majid Al Futtaim Holding, and Ayman Elkousey, Managing Director and Chief Executive Officer of MIDAR.
The project
The development spans about 553 feddans, roughly 2.32 million square metres, within Mada City in New Cairo. Its master plan includes around 6,000 residential units, a business and services district, commercial and entertainment facilities and hotel units, forming an integrated mixed use community.
Work will be delivered in phases. The first phase covers 200 feddans, about 840,000 square metres, targeted for development over the first four years from the start of implementation. The second phase comprises 300 feddans, with a further area of around 60 feddans set aside for a potential integrated shopping and entertainment destination, allocated progressively in line with the pace of construction and occupancy. Including that component, the companies expect the total development value to rise to more than US$4 billion. MIDAR said the partnership is structured under a revenue sharing model, with an expected future value for MIDAR exceeding EGP 40 billion.
Why it matters
The partnership is a fresh marker of Gulf capital flowing into Egypt’s real estate sector, which the government continues to treat as a central engine of growth and a magnet for foreign investment. For Majid Al Futtaim, it is a significant step deeper into a market where the group says it has invested about US$2.8 billion over a 27 year presence and helped create more than 226,000 direct and indirect jobs, building on landmark assets such as Mall of Egypt and a large Carrefour footprint.
The deal also extends a run of large regional commitments to Egyptian real estate and reinforces New Cairo and the wider east Cairo corridor as a focus for institutional investment. For MIDAR, attracting a developer of Majid Al Futtaim’s scale strengthens Mada City’s positioning as a destination for regional investors and supports the master developer’s strategy of forging partnerships with established regional and global names.
Outlook
With the agreement signed and a phased work plan defined, the early test will be the pace of delivery on the first 200 feddan phase over the next four years and the rollout of subsequent phases. Sustained execution would support both the project’s path toward a development value above US$4 billion and Egypt’s broader effort to convert investor interest into committed, on the ground real estate activity.
Sources: Majid Al Futtaim (official press release); MIDAR for Investment and Urban Development.
