Cons and disadvantages of the New Capital

Cons of the New Capital

The New Capital is a huge and ambitious project for the Egyptian government. However, it faces some defects and challenges that must be addressed. Among the disadvantages of the New Capital:

1- Lack of population: Until now, the population in the New Administrative Capital is still small, which means that there is still no balance between supply and demand for various services and commodities, and this matter may affect the tourism and investment attractions of the city.

2- Infrastructure: Building and developing the full infrastructure of the city requires a lot of time, effort, and financial resources, which means that it may take some time before the city is ready to receive residents and customers.

3- Cost: Establishing a new city requires a large infrastructure and the development of multiple services at a high cost, and this means that the new administrative capital may be more expensive than other capitals at first.

4- Lack of social services: At the present time, there are not many social services available in the New Capital, such as schools, hospitals, parks, and shops, and these services must be provided to make the city a suitable place to live and work.

5- The environment: There is a lot of agricultural land in the area surrounding the New Capital, and the development of the city may lead to negative effects on the environment and on the neighboring agricultural lands. Work must be done to identify the environmental impacts of the city and work to reduce them and work to preserve the surrounding environment.

6- Mobility: The city faces transportation challenges, as travelers need to access it via highways, and there are currently no railways or metro linking the city with Cairo and neighboring cities, which makes movement in the city difficult.

7- High rents: Companies and institutions that wish to move to the New Capital face a challenge with high rents for offices and commercial spaces, and this could affect the city’s attractiveness as a business center.

8- Sustainability: Sustainability is one of the major challenges facing the New Capital, where work must be done to provide sustainable energy sources and preserve the environment by improving construction and urban planning standards

9- Culture and entertainment: Although there are cultural and entertainment projects in the city, it is witnessing a shortage in these areas compared to other capitals, and work must be done to provide more opportunities for entertainment and culture for the population.

10- Security: The city faces security challenges, and work must be done to provide the necessary protection for residents and investors, and to enhance security and stability in the city.

In general, the New Capital needs investments and continuous development to overcome these challenges and achieve its goals of being a center for business, government and culture in Egypt.

Disadvantages of investing in the new administrative capital

The New Capital is a huge and ambitious project in Egypt with the aim of moving the seat of government from Cairo to the New City. Despite the potential investment opportunities, there are some drawbacks that investors should consider before making an investment decision. The most prominent disadvantages of investing in the New Capital are:

1. Financial risks: Huge investments in major projects such as the New Administrative Capital may require high costs and may face difficulties in achieving the desired return on investment.
2. Growth expectations: Expectations related to economic and demographic growth in the region may be exaggerated, which affects the ability of investments to achieve the desired return.
3. Infrastructure: There are significant challenges in providing the necessary infrastructure for the city (such as power, water and transportation) and these challenges can be costly and time consuming to achieve.
4. Dependence on the public sector: Major projects in the New Administrative Capital may be affiliated with the public sector, which means that investments may be subject to political influences and changes in government policies.
5. Competition: Large investments in similar projects in the surrounding area may result in increased competition and the impact on the value of investments.
6. Ability to attract talent: The city may have difficulty attracting local and international talent to work on new projects, which hinders the development of the economy.

In conclusion, investors should think carefully when considering investing in the New Capital and analyze the opportunities and risks associated with it. Despite the potential opportunities, the above disadvantages reflect the challenges investors may face in the future.

Cons of the New Capital

The New Capital faces some of the New Capital’s shortcomings and negatives that may affect its attractiveness as a city for living and working in the current period so far, and among these negatives:

1- Lack of population: The New Capital suffers from a lack of population, and this may affect the availability of public facilities and services in the city, and may make life uncomfortable for the population.

2- Long distances: The New Capital is located far from Greater Cairo and neighboring cities, and this makes transportation to and from the city difficult and time consuming, and this challenge may also be negative for companies and institutions that wish to move to the city.

3- The high cost of living: The New Capital is one of the modern and developed areas in Egypt, and this means that the cost of living in the city may be higher than other areas in Egypt

4- Lack of public services: The New Capital faces challenges in providing public services to the population, such as schools, hospitals, commercial and entertainment centers, and this could affect the city’s attractiveness to residents and investors.

5- Unavailability of public transportation: There is currently no integrated public transportation system in the New Capital, and this makes movement within the city somewhat difficult, and this is one of the biggest shortcomings of the New Capital.

6- Lack of culture and entertainment: The New Capital suffers from a lack of opportunities for entertainment and culture, and this can make life in the city boring for residents and affect the city’s attractiveness as a center for business and social life.

7- Lack of economic activities: The New Capital relies heavily on governmental and administrative activities, and this could affect the availability of economic opportunities and jobs in the city for its residents.

Despite the presence of the New Capital’s shortcomings and challenges, the New Capital is still considered an important investment opportunity in Egypt, and investors can take advantage of the opportunities available in the city through good planning and investing in the right projects.

the future of the New Capital

The capital is planning to contain up to 5 million people and government, administrative and commercial jobs. It will contain residential complexes, entertainment facilities, gardens and large green areas.

The first phase includes the construction of a large university and hospital, a commercial center, a hotel and a tourist area. There are plans to construct about 300 government buildings, including the Egyptian parliament and ministers

This project was funded by borrowing from China and some Arab countries. In 2019, about 375 billion Egyptian pounds were allocated to this new capital over 5 years.

The capital aims to improve infrastructure, reduce congestion in Cairo and achieve sustainable development. It is expected to improve the quality of life and living in Egypt

I cannot accurately predict the future of the Capital, but it can be said that the New Capital in Egypt is currently witnessing a great development in the infrastructure, facilities and mega projects that are expected to be established in it in the future

It is expected that the New Capital will witness a great economic and social development in the future, which will attract domestic and foreign investments, increase job opportunities and improve the standard of living in the region.

The New Capital also has a distinguished geographical location and a modern design that includes the use of modern technology and renewable energy, making it one of the most modern and sustainable cities in the world.

Therefore, it can be said that despite the presence of the New Capital’s shortcomings, the future awaiting the New Capital looks bright and promising, and that it will be one of the most important cities in Egypt and the region in the near future despite the New Capital’s shortcomings

The failure of the new administrative capital

Has the New Capital project failed? There are many defects in the New Capital and the challenges that faced the New Capital project in Egypt. The cost of the project was significantly higher than the originally planned budget. In addition, the new capital did not attract institutions and companies as expected, which led to the reluctance of employees to move there. There is also a lack of infrastructure in terms of housing and service facilities for the city’s residents. All these challenges have contributed to the failure of this ambitious project so far.

However, this project can be saved through: reconsidering designs to reduce costs, encouraging the private sector to invest in the city, marketing the city as a tourist destination, improving infrastructure and services to attract more residents and institutions. Therefore, one should not give up yet, and more efforts must be made to make this gigantic civil project a success

When will the new administrative capital be completed?

Plans to build the new administrative capital in Egypt have faced some delays and are still not fully completed yet. According to the current plans, the project is scheduled to be fully completed in 2030, as follows:

The first phase (2022-2025): the completion of the construction of the main buildings complex for ministries and institutions on an area of 220 acres

The second phase (2025-2028): Completion of about 60% of the area of ​​the new capital, which is about 175 thousand acres.

The third phase (2028-2030): the completion of the construction of the new administrative capital completely and the transfer of all ministries and government institutions to it.

These plans are subject to postponement again, especially with the presence of financial challenges. But the government confirms that the project is ongoing and will eventually be completed within the current decade

One of the defects of the New Capital is most likely the delay in completing the phases at the planned time.