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Will Egypt's new administrative capital help its economy?

Thoughtful planning and government management seem indispensable to a return on investments for Egypt.
A delegate looks at a model of a planned new capital for Egypt during the final day of Egypt Economic Development Conference (EEDC) in Sharm el-Sheikh, in the South Sinai governorate, south of Cairo, March 15, 2015. President Abdel Fattah al-Sisi was so confident after Egypt signed billions of dollars of deals at an investment summit that he publicly joked on Sunday about haggling with the world's top chief executives. Yet the real challenge has only just begun. REUTERS/Amr Abdallah Dalsh  (EGYPT - Tags: BU

The Egypt Economic Development Conference, held in Sharm el-Sheikh in mid-March and attended by Arab and international leaders, has achieved overwhelming success and attracted initial investments estimated at $60 billion, according to the closing speech of Egyptian Prime Minister Ibrahim Mehleb. The largest deal, estimated at $45 billion, was signed during the conference between the Egyptian government and the United Arab Emirates’ Emaar Properties and aims at creating a new administrative capital.

The General Authority for Investment and Free Zones has set up an investment map for projects to be implemented across Egyptian provinces. The map presented at the conference shows the most potential opportunities expected to be implemented over the next 30 years. While the opportunities include 336 projects in the fields of tourism and entertainment, these projects — and especially the new administrative capital — raise several questions about their economic viability. The time frame for the completion of the new economic capital is five to seven years. As for the other projects, details have not been announced yet.

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