Presidential elections are widely expected to be held in April, and Egypt's army chief, Field Marshal Abdel-Fattah el-Sissi, has strongly hinted he will be running for the post himself.
The massive housing initiative seems likely to boost the popularity of el-Sissi at a time when the country's economy has been slow to recover since the uprising in 2011 and as Egypt faces an increasingly violent Muslim Brotherhood, the Islamist political party of Morsi. Some areas of the country lend support to the brotherhood, and sidelining or pacifying that segment of the population is a priority for Egypt's military-backed interim government.
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Arabtec has been involved in several of Dubai's most iconic projects, including the world's tallest tower, the Burj Khalifa. It was hit hard in the wake of Dubai's debt crisis in 2009 and has since moved rapidly to diversify toward other parts of the region.
The company's backlog picked up substantially after Aabar Investments, majority-owned by Abu Dhabi sovereign wealth fund IPIC, bought a 21.6 percent stake in the company in 2012.
Investors are likely still wrapping their heads around the new deal with Egypt, Mohammad Kamal, an analyst with Dubai-based Arqaam Capital, told CNBC.
"The market will likely take time to digest the news interms of impact. Investors and analysts are looking forward to further disclosure, which may be released along with the company's first quarter financials," he said.
Aabar Investments also has stakes in Italy's UniCredit, Glencore Xstrata and Virgin Galactic.
—By CNBC's Yousef Gamal El-Din. Follow him on Twitter @youseftv.