Cairo, Egypt — Egypt is actively exploring new development opportunities along its Red Sea coast, with Prime Minister Mostafa Madbouly announcing plans for at least five new areas to attract investment similar to the Ras El-Hekma project. This initiative follows a significant $35 billion investment plan unveiled by the UAE sovereign fund ADQ, aimed at creating the “largest new city” in Egypt to enhance tourism and drive economic growth.
ADQ recently acquired development rights for Ras El-Hekma for $24 billion, with plans to transform the area into a Mediterranean holiday destination featuring a free zone. Additionally, ADQ is set to convert $11 billion of its deposits into investments for key projects across Egypt.
While details on the new Red Sea areas remain sparse, Egypt is promoting the Ras Banas headland to tourism developers as part of its broader strategy to boost economic activity in the region.
In related developments, Saudi Arabia has committed to a new $5 billion investment in Egypt, which will be separate from its existing deposits with the Central Bank of Egypt. This investment, announced by Crown Prince Mohammed bin Salman, will span multiple sectors.
Earlier in August, Saudi Investment Minister Khalid Al Falih indicated plans to convert a $10 billion deposit with the Central Bank into investments in Egypt.
The newly formed Egyptian cabinet is aiming to triple foreign direct investment (FDI) to $30 billion during the current financial year, which began on July 1, following a record $10 billion in FDI inflows in 2022-23. This ambitious goal comes as the government seeks to reduce budgets and slow down state spending on projects.
