Evaluating Egypt's Emerging City: Is It Fulfilling the Nation's Needs?
Located just thirty miles from Cairo, an emerging city is taking shape boasting Africa's tallest tower and the Middle East's largest cathedral. However, concerns are raised about the allocation of funds and whether they could have a greater impact elsewhere.
In the desert 30 miles east of Cairo, Egypt, a new city is emerging. It already boasts the tallest tower in Africa and the largest cathedral in the Middle East, part of President Abdel Fattah el-Sisi's ambitious plans to boost the country's economy.
The construction of the "New Administrative Capital" started in 2016 and is progressing in stages. Khaled Abbas, the chairman of the Administrative Capital for Urban Development (ACUD), the company managing the project, mentioned that phase one is nearly finished, and phase two is set to begin later this year.
Life is slowly starting to come back to the city. Abbas mentioned that more than 1,500 families have already moved in, and he predicts that by the end of 2024, this number will increase to 10,000.
Government ministries have also started moving to the new city, with approximately 48,000 government employees already working there. Many of them commute from eastern Cairo using an electric train that began operating last year. As parliament begins holding meetings in the city and more banks and businesses relocate their headquarters there in March, more people are expected to make the move.
Eventually, “the whole country will be managed from within the new capital,” Abbas adds.
The Egyptian Parliament will start directing its meetings from the new city in March. Pictured here is the interior of the House of Representatives.
The Egyptian Parliament will start directing its meetings from the new city in March. Pictured here is the interior of the House of Representatives.
Khaled Desouki/AFP/Getty Images
He mentions that the first phase of the project cost approximately 500 billion Egyptian pounds ($10.6 billion). Initially, the total cost of the project was estimated to be around $58 billion. The government stated that the funding would come from ACUD and land sales revenue, although there are reports indicating that the project is costing the state billions.
Critics are worried about the project's cost, especially during a period of economic downturn and amidst increased pressures from the conflict in Gaza. Egypt's economy is receiving support from international sources such as the World Bank, which recently announced a funding of over $6 billion for Egypt over three years. Additionally, the International Monetary Fund revealed plans to increase its loan program for Egypt from $3 billion to $8 billion. This increase is subject to economic reforms, including a new strategy to slow down infrastructure spending to reduce inflation and maintain debt sustainability.
ACUD, a company owned 51% by the military and 49% by the housing ministry, reassured CNN that the IMF announcement would not impact the city's development. In February, ACUD announced that Dar, a global architecture and engineering firm, had been awarded the contract to create a detailed master plan for phases two, three, and four of the capital. Abbas mentioned that the second phase is estimated to cost around 300 billion Egyptian pounds ($6.4 billion).
Continental hub
The New Administrative Capital is focused on a financial district where international banks and businesses will establish their global headquarters. Afreximbank revealed plans to build an African Trade Centre in the city, comprising its global headquarters, a conference center, hotel, and an innovation hub. This will serve as a convenient "one-stop-shop business complex" for intra-African trade. Additionally, a consortium from the United Arab Emirates and South Africa will establish a financial hub in the capital.
Abbas is confident that the city's modern infrastructure will be appealing to businesses. He mentions that an artificial intelligence system will efficiently manage electricity, gas, water, and waste. The city will also benefit from optical fiber infrastructure and the implementation of 5G technology to enhance connectivity. Moreover, advanced security services will be in place, including thousands of surveillance cameras to monitor traffic and promptly address congestion and accidents.
National and international banks are moving their headquarters to the new city.
National and international banks are moving their headquarters to the new city.
Khaled Desouki/AFP/Getty Images
He mentions that major international companies are interested in smart cities and sustainability. Their goal is to provide various services to make conducting business in Egypt effortless. The vision is for Egypt's smart city model to inspire other African nations and boost economic growth in the region.
Nicholas Simcik Arese, chair of history and theory at the Architectural Association in London, has conducted extensive field research in Cairo. According to him, the new city could potentially attract business, especially in the form of "high-level bilateral partnerships" and foreign investment that could help boost the economy. However, he raises the important question of who will ultimately benefit economically from these developments, suggesting that the benefits may only reach a very small portion of the population.
He highlights the historical trend of Egyptian leaders initiating transformative projects by building satellite cities near Cairo, such as "6th of October" and "New Cairo," which were established in 1979 and 2000, respectively. Arese notes that these cities have evolved into gated communities primarily catering to the upper middle class, with many vacancies.
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Some critics believe that one of the main reasons for building the new city is to help the government avoid dealing with major protests, such as the ones that took place in 2011 near Cairo's Tahrir Square. According to Simcik Arese, the urban layout of the new city would make it very difficult for large protests to occur.
The government's decision to build a new capital is mainly driven by the need to accommodate Egypt's growing population and to ease congestion and pollution in Cairo. With a population of 22 million people, Greater Cairo has one of the highest population densities in the world, with up to 50,000 individuals per square mile.
According to Abbas, the new city will offer more green space to its residents. A park called the "Green River" is currently being landscaped, which will be twice the size of Central Park in New York City. However, there are concerns about how this large park will be irrigated due to the arid landscape and limited water resources in the country.
Cairo is densely populated with 50,000 residents per square mile.
Cairo is densely populated with 50,000 residents per square mile.
Simcik Arese recognizes that Cairo is overcrowded. He questions whether constructing a new city is the best solution. According to him, the problem of overcrowding in Cairo is not solely due to the rapid population growth. It also involves people's access to good opportunities in their own communities.
There are many homes in Cairo that are in good condition and can still be used. If the government were to invest some money in improving these existing homes and cities, overcrowding could be reduced quickly.
A company purchased the gas rights to this land for only $1. However, the presence of helium suggests that its value could potentially reach billions.
Abbas mentioned that Cairo's outdated infrastructure is beyond the point of repair. He did not disclose specific figures regarding the availability of affordable housing in the new city, but he assured that it will be inclusive of all segments of society.
"The cost of living in this new city is comparable to that of the old city, but the difference lies in the fact that you are now residing in a modern, eco-friendly green city," he explains. "Our main goal is to enhance the quality of life for all residents."
Editor's P/S:
The ambitious project of building a new administrative capital in Egypt is a reflection of the country's aspirations for economic growth and modernization. The city's modern infrastructure, focus on sustainability, and appeal to international businesses have the potential to attract investment and boost economic activity. However, it is crucial to address concerns regarding the project's cost, its impact on the environment, and the potential for it to benefit only a limited segment of the population. Ensuring inclusivity, affordability, and sustainable practices are essential for the city to truly enhance the well-being of all Egyptians.
The new capital's location in the desert raises environmental concerns. The construction of a large park requires significant irrigation, which may strain the country's limited water resources. It is important for the government to implement water-efficient landscaping techniques and explore alternative sources of water to ensure the park's sustainability. Additionally, the city's reliance on artificial intelligence and advanced technology must be balanced with the need for human interaction and the preservation of Egyptian culture and heritage.
