Egypt received $5 billion as a first tranche in the Ras al-Hikma property development deal signed with United Arab Emirates and will receive a second $5 billion tranche on Friday, Egyptian Prime Minister Mostafa Madbouly said in a statement on Thursday.

The deal with Abu Dhabi sovereign fund ADQ to develop the Ras al-Hikma peninsula about 200 km (125 miles) west of Alexandria and complete other projects in Egypt includes a total of $35 billion in investments to arrive within two months, Egyptian officials and ADQ have said.

Of that total, $11 billion are to be converted from existing deposits.

Madbouly said in Thursday's statement that measures had already be taken to convert $5 billion to Egyptian pounds from UAE deposits in Egypt's central bank.

A ministerial committee headed by the prime minister would be formed "to facilitate procedures, overcome any obstacles, solve any problems" for the Ras al-Hikma project, the statement added.

Thursday's statement also said Egypt had received $520 million from a deal to sell stakes in seven prominent hotels. The rest of the funds in the $800 million deal should be received soon, the statement said.

Egypt has been struggling with a prolonged shortage of foreign currency and rapid inflation, but bonds have rallied since the announcement of the ADQ deal and the Egyptian pound has strengthened on the black market.

The cost of insuring exposure to Egypt's hard-currency debt narrowed to its lowest since April 2022, data from S&P Global Market Intelligence showed on Thursday.

(Reporting by Momen Saeed Atallah; Writing by Ahmed Elimam; Editing by Alex Richardson and Aidan Lewis)