Cairo Festival City second phase to feature hotel
Al-Futtaim Group to invest US $700 million in project after dispute settlement
Al-Futtaim Group is to invest US $700 million in Egypt over the next three years to develop the second phase of Cairo Festival City, which will feature a hotel and almost 500 housing units.
The Dubai-based conglomerate will also pay $30.5 million within 90 days as part of a settlement over announced by the government over a long-standing land sale dispute, Reuters reports.
Al-Futtaim Egypt CEO Mohamed al-Makkawi told reporters: "We have not been issued any building permits since 2010. But after signing the contract amendment, we will now be issued building permits."
The company began work on Cairo Festival City in 2008, building a shopping centre, two hotels, schools, clinics and residences on a three million square metre (32 million square feet) area.
It is reportedly aiming to increase the number of shops in the development from 200 to 300 in the first half of 2015
Its investment in the project marks another phase in the continued recovery of the Egyptian economy, as well as tourism to the country, while the settlement is part of the government’s efforts to clear a backlog of similar disputes since the 2011 uprising, according to Reuters.