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Monday, 20 February 2017

Debate wages over government’s newfound preference for Egyptian companies in new capital

A debate is currently being waged about the private sector’s role in the New Administrative Capital’s development, as the government turns to local developers over foreign companies. A lack of transparency in tendering land to developers on the New Administrative Capital is driving away foreign private sector companies interested in taking part, writes Hossam Abougabal for Middle East Business Intelligence (MEED). The market was not informed on why the Administrative Capital for Urban Development Company — the master developer of the new capital — abandoned agreements with China State Construction Engineering Corporation and the UAE’s Eagle Hills, which is contributing to a perception among foreign companies that the tendering process is a black box, a move that is wasting an opportunity to attract foreign investment. the Egyptian Federation for Construction and Building Contractors (EFCBC) sees it differently. The move represents a chance for local businesses to participate in lucrative construction contracts in a national project and all the benefits that entails (something local contractors have long called for) EFCBC member Daker Abdullah tells DNE.

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