Egypt: The New Capital City
The New Capital City will house government ministries and act as the focus of private sector business & finance, shaping the natural expansion of the city.
Egypt: The New Capital City’s Business Hub
The business environment in Egypt has been subject to major challenges over recent years. The political turmoil of the Arab Spring and the subsequent revolution have been followed by monetary and economic reforms that have negatively impacted the business of many office space occupiers which has in turn impacted the performance of landlords. In response to these pressures, the government has embarked upon a number of major initiatives to improve business conditions and promote the ease of doing business. Many of these initiatives are encompassed in the New Investment law, which targets the elimination of bureaucracy and the promotion of new investment opportunities.
In addition to changes to the governing legislation and regulations, the government has also implemented a physical plan to shape the future growth of the Cairo economy. The long anticipated New Capital City is destined to house not just government ministries but also act as the focus of private sector business and finance as it shapes the natural expansion of the city.
The office market in Cairo has been expanding to the east of the city over the past decade, with New Cairo emerging as the preferred alternative for businesses seeking to escape the congestion and overcrowding of central Cairo. New Cairo benefits from the provision of modern offices with ample parking to compliment the areas close proximity to the airport, top educational facilities, and many popular residential neighborhoods.
The announcement of the New Capital City has stimulated strong interest from private businesses for locations to the east of the existing city. The New Capital will house a wide range of government administrative facilities and ministries, representing a further major shift of footfall and economic activity from Central Cairo towards the East.
A key component of the master plan for the New Capital is the creation of a new central business district that is set to become a future business hub. The contract for the infrastructure works for the new CBD has been awarded to the China State Contracting & Engineering Corporation, one of the largest construction companies that was created by combining four Fortune Global 500 enterprises. The concept and design of the CBD has been based on international benchmarks that set a practical guideline for development and highlight critical success factors.
The contract allows for CSCEC to undertake vertical construction across a total area of about half a square kilometre. This construction includes a 345-meter high skyscraper (the highest in Africa), twelve business complexes, five residential buildings and two hotels.
The new CBD is just the most visible manifestation of the national vision to support the private sector and increase investors’ interest in the Egyptian economy. Not only will it shape the cities future office market but will also help stimulate confidence and help the continued improvement in overall business conditions.
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