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Multi-billion dollar project will not solve Egypt's housing crisis

The Egyptian army's $40 billion deal with the UAE company Arabtec to build 1 million homes for low-income earners is beyond the affordability of Egypt's poor.
An aerial view of Cairo's traffic and houses is pictured through the window of an airplane September 11, 2013. Egypt's population has reached 85 million with the Cairo governorate coming in with the highest number at 8.9 million people, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). REUTERS/Amr Abdallah Dalsh  (EGYPT - Tags: CITYSCAPE) - RTX13HWO

CAIRO — The deal is said to be Field Marshal Abdel-Fattah al-Sisi’s last hurrah before he retires from the military and confirms his bid for the presidency. Two weeks ago, the army announced that it would build 1 million housing units for low-income youths in collaboration with Arabtec Holding, a company based in the United Arab Emirates (UAE). The $40 billion project is the largest construction contract ever in the region.

At the inaugural ceremony, Egypt’s popular army chief and Arabtec CEO Hasan Abdullah Ismaik promised to deliver the first units by 2017 and finish the entire project by 2020. The houses are to be developed in 13 locations spread across 10 governorates. Their construction will create a million new jobs, the army said. Egypt, which is suffering from a crippling housing crisis and an unemployment rate of 50% in some areas, rejoiced.

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