Magnom Properties Plans Hydrogen-Powered Skyscraper in Egypt’s New Capital
Saudi Arabian real estate company Magnom Properties, a subsidiary of Rawabi Holding, has announced plans to start construction early next year on a $1 billion, 50-storey office tower in Egypt’s new capital city. This innovative skyscraper aims to be the first of its kind powered by clean hydrogen.
The tower’s advanced design and high cost reflect Magnom’s confidence that international clients will be attracted to the new capital, a city being constructed from scratch in the desert east of Cairo to house over six million people. The project also represents a gamble on clean hydrogen, a renewable energy source that has yet to be proven at scale, as Egypt seeks to establish itself as a green energy leader in a competitive region.
Despite the transfer of government ministries to the new capital in July 2023, the city remains under construction, with ongoing work on infrastructure like rail links. Few residents have moved in so far.
Magnom Properties plans to finalize the detailed design of the Forbes International Tower soon, with the building expected to be completed by 2030, according to Karim Dayhoum, the company’s executive director of projects. The firm acquired land for the tower in 2021 in the business district of the new capital and is also scouting locations for similar towers in Dubai and Riyadh.
Dayhoum emphasized the vision of offering tenants and investors access to a network of sophisticated office spaces across the region, highlighting the tower’s cutting-edge amenities.
The new capital is the most ambitious among several mega-projects initiated by Egyptian President Abdel Fattah al-Sisi, which have driven infrastructure development but also strained the national budget, increased debt, and consumed foreign currency. These challenges have led to limits on public investment under pressure from the International Monetary Fund.
Despite these challenges, investors see potential in Egypt due to its strategic location and large workforce, although the economy has long been hindered by mismanagement and low productivity.
The $1 billion investment in a single, high-luxury tower is notable in Egypt, where the total cost for the 20 towers in the Chinese-built business district is estimated at $3 billion.
Developed in partnership with Forbes and Chicago-based architects Adrian Smith and Gordon Gill, the tower will feature advanced cybersecurity systems, two ultra-fast VIP elevators, and a helipad. The building is designed to be the first net-zero carbon tower in the Middle East and North Africa, with solar panels integrated into the facade generating 25% of the required electricity, and the remainder supplied by clean hydrogen delivered in liquid form.
Dayhoum noted that the project aims to eliminate reliance on traditional utilities, providing resilience against local grid outages, which have plagued Egypt due to natural gas shortages.
The tower’s financing will involve various debt-equity instruments, with Magnom’s chief investment officer, Ahmed Kassem, mentioning that the company is still deciding whether to retain full ownership of the building.
