Abu Soma Development Company, the developer of Somabay and Redcon Construction have signed a Memorandum of Understanding (MoU) to build more than 2,000 residential units and luxury hotels within the Red Sea project at a total investment of 1.7 billion Egyptian pounds ($35 million).

The MoU establishes a framework for the construction of a diverse array of residential and commercial developments, including Blanca, Bay West Valley, Bay Central, Reef Town, Coves 2, and Nautilus, Abu Soma Development Company said in a press statement.

In addition to the residential projects, the MoU encompasses several fast-track developments including restaurants, beach clubs, schools, and a variety of other facilities in the integrated community.

Ibrahim El Missiri, Group CEO of Somabay said the projected work volume in 2024 is about EGP 500 million ($10 million), expanding to EGP 1.2 billion ($25 million) in 2025.

Tarek ElGamal, Chairman of REDCON Construction said his company is committed to apply the latest construction technologies and will establish a dedicated Building Information Modelling (BIM) unit for the project to facilitate the management and execution of all projects under the MoU.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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