Magnom Properties of Saudi Arabia plans to build a hydrogen-powered skyscraper in Egypt.
Plans to break ground early next year on a $1 billion, 50-story office tower in Egypt’s new capital, aiming to be the first of its kind powered by clean hydrogen.
Magnom Properties, a subsidiary of Saudi industrial conglomerate Rawabi Holding, is betting that the tower’s sophisticated design and high price tag will attract international clients to Egypt’s new capital, a city for over six million people being built from scratch in the desert east of Cairo.
The project also represents a gamble on clean hydrogen, a renewable energy source not yet proven at scale, as Egypt positions itself as a green energy hub amidst regional competition.
While ministries relocated to the new capital in July 2023, few residents have moved in, and construction on infrastructure, including rail links, is ongoing. Magnom Properties will soon start the detailed design of the Forbes International Tower, with a target completion date of 2030, said Karim Dayhoum, the company’s executive director of projects.
The firm purchased land for the tower in 2021 in the new capital’s business district and is also selecting land for sister towers planned for Dubai and Riyadh.
“We want to offer our tenants, buyers, and investors access to facilities and amenities across the region,” Dayhoum said. “It’s a network of sophisticated office spaces.”
The new capital is the most ambitious of several mega-projects launched by Egyptian President Abdel Fattah al-Sisi. These initiatives have driven infrastructure development but also strained the budget, increased debt, and drained foreign currency, leading to a cap on public investment under pressure from the International Monetary Fund.
While investors see potential in Egypt’s strategic location and large workforce, the economy has long struggled with mismanagement and low productivity.
The $1 billion investment in a single tower and its luxury design are unusual for Egypt. The rest of the business district, built by Chinese firms and featuring 20 towers, has an estimated investment cost of $3 billion.
Developed in partnership with media group Forbes and Chicago-based architects Adrian Smith and Gordon Gill, the tower will feature advanced cyber security systems, two ultra-fast VIP elevators, and a helipad.
The project aims to be the first net-zero carbon tower in the Middle East and North Africa. Solar panels embedded in the facade are expected to generate 25% of the building’s electricity, with the remainder supplied by clean hydrogen transported in liquid form.
“We’re striving to eliminate any reliance on utilities,” Dayhoum said, noting that buyers of land are receiving incentives for sustainable design, which could help protect against outages in Egypt’s power grid, which has faced chronic shortages due to natural gas supply issues.
The tower’s financing will involve various debt-equity instruments, according to Ahmed Kassem, Magnom’s chief investment officer. “We’re still considering whether to retain full ownership of the building,” he added.
