Ras El Hekma officially kicks off construction with raft of agreements: Abu Dhabi wealth fund ADQ has chosen portfolio company Modon Holding to be the master developer on its landmark USD 35 bn Ras El Hekma project on the North Coast, according to a joint statement (pdf). Modon inked agreements tapping the project’s contractor, building material supplier, and much more. The signings took place over the weekend when President Abdel Fattah El Sisi and UAE President Sheikh Mohamed bin Zayed officially launched construction of the megaproject in a televised visit to the site (watch runtime: 3:10).

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Modon has a big task ahead of it: Modon will not only take up the responsibilities as the master developer for the 170 mn sqm project, but it will also develop the first 50 mn sqm phase of the city.

Modon inked several agreements with local, regional, and international players at the event to help get the project off the ground, including:

  • A framework agreement with local construction giant Orascom Construction for it to be a key contractor for the project's first phase.
  • An MoU with Elsewedy Electric to look into supplying building materials and collaborating on industrial park development, operations, and maintenance.
  • An MoU with Abu Dhabi Airports to collaborate in strategic airport planning, development, and operations.
  • A memorandum of understanding with Taqa to explore cooperation on greenfield utilities, water desalination, and electricity projects.
  • An MoU with e& Egypt to help design and implement smart city infrastructure, from 5G networks and IoT-enabled solutions to city-wide data analytics systems.
  • An MoU with Valderrama to develop and operate golfing facilities.
  • An MoU with Candy International to look into developing luxury real estate.
  • An MoU with US-based luxury hotel management company Montage International for the development and management of luxury hotels.
  • An MoU with the French hospitality company Accor and Ennismore to operate hotels and resorts.
  • An MoU with Emirati Burjeel Holdings to develop healthcare facilities and collaborate on public health programs

Ras El Hekma is expected to reach total investments worth USD 110 bn by 2045, with a yearly GDP contribution of USD 25 bn, and create around 750k direct and indirect jobs.

The international press also picked up on the story: Reuters.

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