Saudi Firm Plans $1 Billion Clean Hydrogen-Powered Skyscraper in Egypt’s New Capital
A Saudi-controlled real estate company, Magnom Properties, plans to begin construction early next year on a $1 billion, 50-storey office tower in Egypt’s new capital. This Hydrogen-Powered Skyscraper is set to be the first in the region powered by clean hydrogen, reflecting a major investment in renewable energy and innovative architecture.
Ambitious Design in Egypt’s New Capital
Magnom Properties, a subsidiary of the Saudi industrial giant Rawabi Holding, is banking on attracting international clients to Egypt’s new administrative capital. This city, designed for over 6 million residents, is currently being built from scratch in the desert, east of Cairo. Although ministries began moving to the city in July 2023, few residents have relocated, and major infrastructure projects, including rail links, are still under construction.
The skyscraper, named Forbes International Tower, is designed to appeal to high-end clients with its sophisticated features and will be part of the city’s business district. Magnom Properties secured the land for this project in 2021 and plans to complete the tower by 2030. The firm is also scouting locations for similar towers in Dubai and Riyadh.
A Bold Bet on Clean Hydrogen
Magnom’s investment in this tower also represents a significant bet on clean hydrogen, a renewable energy source that is still in its early stages of large-scale application. As Egypt strives to establish itself as a green energy hub amidst regional competition, this project could play a crucial role. The tower aims to be the first net-zero carbon skyscraper in the Middle East and North Africa, with solar panels embedded in the facade providing 25% of the building’s electricity needs. The remainder of its power will come from clean hydrogen, which will be transported to the building in liquid form.
The decision to invest in clean hydrogen reflects broader ambitions for sustainable development in the region. The tower’s advanced design includes features such as state-of-the-art cyber security systems, ultra-fast VIP elevators, and a helipad. These amenities are designed to attract top-tier international tenants and investors who are seeking premium office spaces across the Middle East.
Financial and Strategic Considerations
The $1 billion investment in a single tower is a bold move, especially considering that the entire Chinese-built business district in the new capital, consisting of 20 towers, has an estimated total cost of $3 billion. The project’s financing will be managed through various debt equity instruments, though Magnom Properties is still determining whether to maintain full ownership of the building.
Despite the high costs, Magnom’s Executive Director of Projects, Karim Dayhoum, highlights that the tower will offer a unique opportunity for tenants, buyers, and investors. The project is also positioned as a part of Egypt’s most ambitious mega-project under President Abdel Fattah al-Sisi, aimed at spurring infrastructure development.
However, critics argue that these projects, while ambitious, have strained Egypt’s budget, increased national debt, and consumed foreign currency, leading the government to impose caps on public investment under the International Monetary Fund’s guidance. Additionally, there is concern that the new capital and its luxurious developments may not serve the needs of ordinary Egyptians.
Nonetheless, investors remain optimistic about Egypt’s strategic location and large workforce, despite longstanding economic challenges. The Forbes International Tower, with its cutting-edge design and commitment to sustainable energy, could set a new standard for development in the region.
