Modon Signs MOU with Hassan Allam for Ras al-Hekma Project

The $35 billion Ras al-Hekma project, a new city being developed by the UAE and Egypt on the Ras al-Hekma peninsula in Egypt, received a fillip with the UAE-based Modon Holding announcing a strategic partnership with Egypt’s Hassan Allam Holding to explore collaboration across large scale construction projects in Egypt.

The Memorandum of Understanding (MOU) aims to enhance cooperation in the construction sector, including infrastructure, energy, and water and wastewater treatment, and special building among others, Modon, the Abu Dhabi Securities Exchange (ADX)-listed property developer, said in a regulatory filing on Tuesday.

Commenting on this collaboration, Modon Holding Chairman Jassem Mohamed Bu Ataba Al Zaabi said that this agreement is another milestone in Modon’s journey of expansion into Egypt.

He said that it also It demonstrated their dedication to promoting partnership opportunities for the Ras El Hekma project that will drive the company’s growth and diversification, reiterating their position as a leader in the industry that continues to set new standards of excellence.

The two companies will also explore utilities and infrastructure collaboration; specifically, investigate ways to deliver resilient and sustainable power, water treatment, and telecommunications infrastructure to support long-term operational success.

Hassan Allam, Group CEO of Hassan Allam Holding said that they will combine their construction expertise with their visionary projects and this collaboration on the Ras El Hekma project paves the way for delivering world-class developments while advancing the region’s urban and economic aspirations.

He said that together, they were committed to seizing opportunities that will transform cities and enhance the quality of life. We deeply value this partnership and look forward to its success in driving impactful projects.

Modon Hlding Group CEO Bill O’Regan said that this collaboration will add further depth to Modon’s already existing partnerships for the Ras El Hekma project. This partnership will further enhance Modon’s capacity to deliver vibrant lifestyle communities creating short-term impact and long-term value for Modon’s residents and guests.

Another area of cooperation is in construction and execution, whereby Hassan Allam Holding can potentially offer turnkey construction solutions while ensuring high standards of safety, quality, and sustainability for Modon’s projects.

Master Developer           

It may be recalled that Abu Dhabi-based sovereign fund ADQ has appointed Modon Holding as the master developer of the Ras El Hekma project, whose first phase consist of 50 million sq. m., in October this year.

Modon Holding will partner with Egyptian, UAE, and international developers to develop the remaining 120 million sq. m. of the Ras El Hekma city masterplan. The ADQ subsidiary Ras El Hekma Urban Development Project Company and Modon Holding will oversee this partnership.

Modon Holding has signed a framework agreement with Egypt’s Orascom Construction, designating them as one of the primary contractors for the project’s initial construction phase.

The company has also signed a series of memoranda of understanding for potential partnerships on the mega-project, including with Egypt’s Elsewedy Electric, Abu Dhabi Airports and Abu Dhabi energy firm TAQA.

Ras al-Hekma Project

The Ras El Hekma project is expected to drive significant economic growth, attracting $110 billion in investment by 2045. It will contribute roughly $25 billion annually to GDP and create approximately 750,000 jobs, both directly and indirectly.

Ras El Hekma, with its 44 km waterfront, is conveniently located within a four-hour flight for over 400 million outbound tourists. It is expected to be home to two million people upon completion, and it will feature more than 40 km of green spines, making it one of the greenest megaprojects in the region.