Modon plans EGP 35B loan to finance Ras El Hekma project in Egypt: Report

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Modon Holding, the lead developer of the Ras El Hekma project on Egypt’s North Coast, plans to secure a syndicated loan of about EGP 35 billion (approximately $662 million/AED 2.4 billion) to help finance construction works for the Wadi Yemm development, Asharq Bloomberg reported, citing sources.

The sources added that First Abu Dhabi Bank Egypt (FABMISR) is managing and arranging the syndicated loan, with other local and UAE banks operating in the financing market expected to participate.

Modon plans to carry out contracts, infrastructure, and residential projects within Wadi Yemm, at a cost exceeding EGP 80 billion (AED 5.6 billion/$1.5 billion), the sources added.

Recently, Modon awarded a package of works at Wadi Yemm to a joint venture of Redcon Construction and Innovo, valued at around EGP 12 billion ($240 million), after awarding infrastructure works for the project to a consortium of Rowad–CCC consortium, worth EGP 10 billion ($200 million), and also signed with Orascom Construction (ORAS) to deliver residential, hospitality, and artificial intelligence technology projects valued at nearly EGP 15 billion.

Wadi Yemm is the first area to begin implementation within the Ras El Hekma project, located on the waterfront and featuring housing, hotels, and entertainment facilities.

Egypt and the UAE launched the Ras El Hekma project in 2024 with an initial investment from ADQ of $35 billion, appointing Modon Holding as the project’s lead developer.

Modon Holding is developing the project’s first phase, spanning 50 million square meters focused on tourism infrastructure. The remaining 120 million square meters will be developed in partnership with developers from Egypt, the UAE, and global markets, overseen by Ras El Hekma for Urban Development (a subsidiary of ADQ) and in collaboration with Modon Holding.

Ras El Hekma city, which covers more than 170 million square meters, will include tourism facilities, a free zone, an investment zone, along with residential, commercial, and entertainment projects. Total cumulative investment in this mega-project is expected to reach $110 billion by 2045.