The Egyptian Talaat Moustafa Group signed a memorandum of understanding with Iraq’s National Investment Commission to develop part of the “Al-Rafeel” economic city west of the Iraqi capital, Baghdad, in a new step within Iraq’s efforts to attract Arab and foreign investments to support its development and reconstruction plans.
According to a statement issued by the Iraqi Prime Minister’s Office, the signing ceremony was attended by Iraqi Prime Minister Mohammed Shia’ Al-Sudani, alongside several economic figures, including Sulaiman bin Abdul Qadir, Chairman of Saudi Arabia’s Al-Muhaidib Group, reflecting the regional dimension of the project, which is a result of cooperation between Iraq and Saudi and Egyptian companies. In his speech on the occasion, Al-Sudani affirmed the Iraqi government’s commitment to supporting investment projects, emphasizing the importance of creating a suitable environment and providing the necessary facilities to attract major investments that would contribute to developing the national economy and creating job opportunities.
For his part, Hisham Talaat Moustafa, CEO of the Egyptian group, expressed his company’s readiness to immediately begin implementing the agreed-upon projects, noting the group’s preparedness to enter the execution phase as soon as technical and legal arrangements are finalized.
The planned city is part of the larger “Al-Rafeel” project, which is envisioned as a modern economic and developmental hub west of Baghdad, representing the first in a series of urban projects that the Iraqi government aims to implement as part of its plans for reconstruction and comprehensive development.
Talaat Moustafa had previously announced that it was engaged in advanced negotiations to develop an integrated urban community in Iraq, with investments estimated at approximately $10 billion and expected sales reaching $17 billion. The project is anticipated to span 14 million square meters and include around 45,000 multi-use units, with projections of achieving annual operational revenues exceeding $1.5 billion upon completion.
This project marks the group’s third expansion outside Egypt, following the launch in September 2023 of the “Banan” city project in the Saudi capital, Riyadh, in collaboration with the National Housing Company, covering an area of 10 million square meters. Additionally, this week, the group signed an agreement with Oman’s Ministry of Housing to develop two residential and tourism projects valued at 1.5 billion Omani rials (equivalent to approximately $3.9 billion).
Through these projects, the Iraqi government seeks to leverage Arab expertise in urban planning and infrastructure development. Iraq’s Ministry of Planning estimates the country’s reconstruction needs at more than $88 billion to rebuild what was destroyed by wars, particularly following the battles against ISIS.
Last year, the Iraqi government extended an open invitation to investors from Egypt and Gulf countries to invest in various sectors, including tourism, housing, and recreational facilities, as part of a comprehensive vision aimed at building integrated cities connected to Baghdad through modern transportation networks, providing all necessary services to residents.
It is hoped that this agreement will contribute to strengthening economic relations between Iraq and Egypt and provide a successful model for public-private partnerships in regional development projects.
