In one of the largest agreements of its type, Egypt and the United Arab Emirates signed an economic partnership agreement of $35billion on Friday to develop the Ras al-Hekma peninsula west of Alexandria, Al Arabiya reported.

During a press conference on Friday, Egypt’s Prime Minister Mustafa Madbouly said the project would bring in $150 billion.

He shared that in the next two months, the UAE plans to spend $35 billion in Egypt through foreign direct investment. 

Furthermore, the investment, according to Madbouly, would “contribute to resolving” a hard currency shortage that has threatened Egypt’s capacity to pay off its large foreign debt and enable it to stop separate official and black market exchange rates for the Egyptian pound.

Emirati sovereign wealth fund ADQ, meanwhile, said that $24 billion of the investment would go to developing the Ras al-Hekma area west of Alexandria on the Mediterranean coast.

According to a press release, the remaining $11 billion will be allocated to “deposits that will be utilised for investment in prime projects across Egypt to support its economic growth and development.” 

The deal signed between the two governments foresees the injection of a first tranche of $15 billion over the next week, with a second tranche of $20 billion following within the next two months.

According to Madbouly, the Ras al-Hekma project would see the development of a full-resort city with an airport under UAE management.