Egypt has received a fresh injection of $20 billion from the UAE, securing Abu Dhabi’s sovereign wealth fund’s (ADQ) rights to develop Ras El Hekma on Egypt’s North coast, according to local media reports.

The tranche, reportedly transferred on Sunday, consists of $14 billion and $6 billion currently held from a previous deposit by the UAE at the Central Bank of Egypt (CBE).

The first tranche, $15 billion in fresh money, of the $35 billion deal was received soon after the deal’s signing in late February.

Egypt is expected to allocate around $11 billion to paying off some of its external debt. The country’s foreign debt was recorded at $168 billion during H1 of FY2023/2024, climbing by $3.3 billion from $164.7 billion reported at the end of the previous fiscal year.

It is anticipated that the central bank will distribute $6 billion into the banking sector to support clearing arrears and make foreign currency available for essential imports.

Ras El Hekma will be “competing with the most important cities of the world” by 2025, claims a promotional video released in March for the new project.

The video reveals some of the UAE’s plans for the coastline, noting that it will host factories, farmland and concert halls, run on clean energy, and create millions of jobs.

The deal has drove a significant shift in Egypt’s economic landscape, leading to a devaluation of the Egyptian pound, the International Monetary Fund increasing its loan to the country by $5 billion to $8 billion, and several fresh injections from international groups and investors.