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Egypt on Friday signed an investment agreement with the United Arab Emirates (UAE) to develop new cities in Egypt’s north coast on the Mediterranean Sea, west of the city of Alexandria.

The partnership agreement to develop the Ras al-Hikma peninsula is the largest ever foreign direct investment project in Egypt’s history.

According to a statement from the Egyptian prime minister’s office, the UAE’s total investment in the project will reach 150 billion U.S. dollars.

The statement also said that Egypt will immediately receive 35 billion U.S dollars as down payment, plus 35 percent of all profits.

Furthermore, the UAE is also waiving 11 billion U.S. dollars of deposits it has in Egypt’s central bank for the sake of the project.

The deal comes hot on the heels of a comprehensive economic partnership agreement (CEPA) signed between the oil-rich Gulf nation and Kenya.

(Story compiled with assistance from wire reports)