Egypt has announced a large UAE-backed investment in Egypt for the development of a large stretch of the country’s Mediterranean coast, which is expected to benefit the country greatly.

In the long run, Egypt is expected to receive additional funds from the increased inflow of tourists, apart from the creation of jobs and higher budget revenues.

In the mid-term, once the project enters the construction stage, it is expected to give a strong boost to the building materials industry in Egypt, including the steel sector.

According to Egyptian media sources, on Friday, February 16, Egypt sealed a deal with the UAE-based ADQ, an Abu Dhabi sovereign investment fund, worth $35 billion.

The investment involves the development of the Ras El Hekma peninsula in Egypt and it is estimated that the area could further attract an additional $150 billion of investments, according to the Egyptian prime minister.

Steel market sources expect the realization of the investment is to give a huge boost to crisis-hit Egyptian industries, including construction.

As a result, domestic steel demand will receive a huge boost, though it is not yet clear what the terms of the projects are and over what period the investment will extend.