Recent developments surrounding the construction of Egypt’s new presidential palace, located in the New Administrative Capital, have sparked intense debate over its cost and financial implications. While some have praised its luxurious design and homage to Egyptian identity, others have questioned the sources of funding for the project, particularly in the context of the country’s economic challenges.
Egyptian President Abdel Fattah al-Sisi recently addressed the controversy surrounding the high cost of the presidential palace during an inspection of the Police Academy. He affirmed that all government infrastructure in the New Administrative Capital was funded by the Capital Administration for Urban Development (CAUD) and that the project did not burden the state budget.
According to President Sisi, CAUD has managed to transform land into financial resources, with annual revenues estimated at between seven and ten billion Egyptian pounds. He pointed out that the company has a bank account of 80 billion pounds and holds real estate assets worth 150 billion pounds through the sale of land.
President Abbas, Chairman of the Board of Directors of ACUD, for his part assured that the construction of the New Administrative Capital was not financed from the state budget. He explained that government buildings, including the presidential palace, are assets belonging to the company and leased to the government for a period of 49 years.
ACUD, as a state-owned company, is among the largest companies in Egypt and is among the top five tax-paying companies. It paid 11 billion pounds in taxes last year and 8 billion the year before. The investment-oriented company aims to make profits and recover the cost of the buildings three times over when the leases expire.
With planning already underway for the second phase of the New Administrative Capital, covering an area of 40,000 acres, ACUD expects to begin construction in the second quarter of next year. With 70% of the land in the first phase already sold, the company is preparing to develop new facilities for the second phase, demonstrating an ambitious and strategic vision for the future.
In conclusion, the clarifications provided by ACUD and Egyptian government officials aim to dispel doubts and highlight the financial viability of the New Administrative Capital project. This initiative, driven by profitability and sustainable development objectives, embodies a modern and innovative vision for the future of Egypt, while generating positive impacts on the national economy.