A Saudi-owned real estate company announced plans to begin construction early next year in Egypt’s new capital on a $1 billion, 50-story office tower, which aims to be the first of its kind powered by clean hydrogen.
Magnom Properties, a subsidiary of Saudi industrial group Rawabi Holding, is betting that the advanced design and hefty price tag of its project will attract international clients to Egypt’s new capital—a city planned for over 6 million residents and currently under construction in the desert east of Cairo.
Magnom Properties is also wagering on clean hydrogen—produced with renewable energy and not yet widely scaled—as Egypt strives to establish itself as a green energy hub amidst regional competition.
While ministries began relocating to the new capital in July 2023, few residents have followed, and infrastructure construction, including rail links, is ongoing.
The company plans to finalize the detailed design of the Forbes International Tower soon, with a target completion date of 2030, according to Karim Dayhoum, Magnom’s executive director of projects.
Although these projects have accelerated infrastructure development, they have also strained the budget, increased debt, and depleted foreign currency reserves, prompting the government to limit public investment under pressure from the International Monetary Fund.
While investors recognize Egypt’s strategic location and large workforce as potential assets, they point out that the economy has struggled due to poor management and low productivity.
Critics argue that the new capital fails to address the needs of average Egyptians.
The tower’s $1 billion cost and luxury design stand out in Egypt, where the entire Chinese-built business district of 20 towers is estimated at $3 billion.
Developed in collaboration with Forbes and Chicago-based architects Adrian Smith and Gordon Gill, the plans for the tower include advanced cybersecurity systems, two high-speed VIP elevators, and a helipad.
The project aims to become the first net-zero carbon tower in the Middle East and North Africa.
Solar panels on the facade are expected to generate 25% of the building’s electricity, with the remainder supplied by clean hydrogen delivered in liquid form.
“We’re trying to completely eliminate any sort of reliance on utilities,” Dayhoum explained, noting that land buyers are being offered incentives for sustainable design.
This strategy could also mitigate the impact of local grid outages, as Egypt faces frequent power cuts due to natural gas shortages.
Financing for the tower will involve various debt-equity instruments, with Magnom’s Chief Investment Officer Ahmed Kassem stating, “We’re still at a group level discussing whether to retain full ownership of the building.”
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