Anwar El-Sadat, Chairman of Reform and Development Party (RDP) expressed his deepest grief for the results of negotiations with Emaar Misr Corporation on the construction of "the New Capital". It was expected that "the New Capital" enterprise will bring huge foreign investments. However, it seems that the corporation has other plans depending almost totally on local funding.
El-Sadat explained that the government was supposed to grant the land specified for the project for 24% only of the holder's equity. An extravagant Emirati Corporation was supposed to cover for the rest of the project suing Gulf and international capital; notwithstanding, unfortunately most of the funding will be from Egyptian banks. Buying of Emaar Misr Corporation shares in advance and selling same in the stock market will also contribute in the financing process of the project. This brings to mind the old proverb /mn da'no w eftelo/ which means use your same resources to reach a goal without depending on any other contributions.
El-Sadat praised the government's stance in refusing this plan as it will burden the savings of the Egyptians as well as impede the read real desire to attract foreign capital. Such investments will help in enhancing the status of foreign investments in Egypt. It is noteworthy to shed light on the fact that the haste announcement of "the New Capital" project at the Egyptian Economic Conference will result in the postponement of the enterprise. The announcement was made without developing an integrated plan and a carefully studied vision with respect to the best place for the project or the best financing terms and conditions.
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