Egypt takes over new capital construction

Egypt’s cash-strapped government says it has taken charge of plans to build a new capital after failing to close a deal with the UAE investor meant to lead a project some have compared in its ambition to the ancient pyramids. Built to escape Cairo’s overcrowding and pollution, the new administrative capital was expected to cost a total $300 billion and feature an airport larger than London’s Heathrow and a building taller than Paris’ Eiffel Tower.

The mega-project was unveiled in March at the Sharm el-Sheikh economic summit, where President Abdel-Fattah al-Sisi urged foreign investors to help Egypt recover from turmoil unleashed after the 2011 uprising against Hosni Mubarak.

Phase 1 alone was expected to cost $45 billion.

But Egyptian officials said Mohamed Alabbar, the United Arab Emirates property tycoon who helped develop Dubai’s Burj Khalifa skyscraper, would not be the lead partner in the venture due to disagreements on the finances.