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Egypt Designates Coastal Areas for Major Investment Deals

Egyptian Prime Minister Mostafa Madbouly speaks at the press conference. (Egyptian government)
Egyptian Prime Minister Mostafa Madbouly speaks at the press conference. (Egyptian government)
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Egypt Designates Coastal Areas for Major Investment Deals

Egyptian Prime Minister Mostafa Madbouly speaks at the press conference. (Egyptian government)
Egyptian Prime Minister Mostafa Madbouly speaks at the press conference. (Egyptian government)

Egyptian Prime Minister Mostafa Madbouly announced on Thursday that his country has earmarked 5 spots on the Red Sea, including Ras Banas peninsula, to attract new investments in fully integrated cities similar to the Ras El-Hekma deal in February.

“There are several other regions plotted for complete urban development, which will include all types of activities and infrastructure, such as airports, ports, and marinas for international tourism,” Madbouly said in a weekly press conference following the weekly cabinet meeting.

“This falls within the government’s efforts to attract foreign direct investment to create job opportunities and boost the economy,” he added.

Egypt and Emirati investors signed in February a historic deal to build a multi-billion new state-of-the-art city of Ras El-Hekma as a new massive urban, business, and tourism center in the country’s North Coast.

Madbouly spoke with reporters on his recent visit to Saudi Arabia, where he met with Prince Mohammed bin Salman, Crown Prince and Prime Minister, and Saudi businessmen.

“Crown Prince Mohammed confirmed that the Saudi Public Investment Fund (PIF) will inject $5 billion into projects in key economic sectors,” Madbouly revealed.

He explained that those $ 5 billion are separate from the Saudi deposits at the Central Bank of Egypt (CBE).

According to urban planning expert Saif al-Din Faraj, the recent government announcement continues the strategy to develop various regions across Egypt. He told Asharq Al-Awsat that focusing on underutilized areas is expected to bring positive results.

Faraj explained that partnering with the private sector will help sustain foreign currency resources while creating new urban communities for tourists interested in Egypt’s natural beauty. He added that promoting urban investment opportunities “will significantly boost development and support economic growth goals.”

Economic expert Karim al-Omda agreed, stating that high returns from tourism investments are not the only reason for public-private partnerships with foreign investors. He emphasized the need to increase tourist numbers to provide more hotel options and attractions.

Al-Omda noted that Arab investment funds and major companies are keen to invest in these projects due to their attractive and sustainable returns, along with security stability and investment incentives.

He highlighted that Gulf countries are particularly interested in these opportunities.

The Egyptian government is focused on attracting direct foreign investments to diversify income sources and boost private sector growth, while also updating regulations to support foreign investors and quickly resolve their issues.

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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s digital advertising sector is experiencing rapid growth, but a significant portion of its revenues is leaking to foreign platforms. To maximize the impact on the national economy, experts are calling for strategies to curb this outflow and redirect it to local channels.

The importance of retaining digital ad revenues lies in the substantial size of this market. It is estimated that approximately $1 billion in ad spent is lost annually to foreign platforms, representing a considerable loss to Saudi Arabia’s economy.

Dr. Ebada Al-Abbad, CEO of Marketing and Communications at Tadafuq, a Saudi digital advertising network, told Asharq Al-Awsat that the problem stems from the fact that although advertisers, products, and audiences are often local, the largest share of financial gains goes to foreign platforms. He estimated that 70-80% of the $1.5 billion spent on digital advertising in Saudi Arabia in 2022 went to global platforms such as Google and Facebook. This results in the national economy losing nearly $1 billion annually from this sector alone.

Al-Abbad noted that government agencies in Saudi Arabia also contribute to the outflow. He explained that public sector spending on digital advertising, intended to raise awareness among citizens and residents, frequently ends up on foreign platforms. Government spending makes up about 20-25% of the total digital ad market in the Kingdom, meaning hundreds of millions of riyals leave the country annually, weakening the local digital economy.

Al-Abbad argues that Saudi Arabia needs strong local digital ad networks to keep this revenue within the national economy. These networks would help create jobs, drive innovation, and promote cultural diversity in digital content. Developing local platforms would also enhance Saudi Arabia’s digital sovereignty by ensuring that data remains within the country and is not controlled by foreign entities.

Moreover, local networks would reduce dependence on international platforms, ensuring that the economic benefits of digital advertising remain in the Kingdom, he said, stressing that this would align with Saudi Arabia’s broader Vision 2030 goals, which emphasize building a robust, diversified economy driven by local industries and digital transformation.

Globally, the digital advertising sector is growing rapidly. In 2022, worldwide spending on digital ads reached $602 billion, and it is projected to hit $876 billion by 2026. In the Middle East and North Africa (MENA) region, the digital ad market grew to $5.9 billion in 2022, with Saudi Arabia’s market accounting for over $1.5 billion.

In other countries, the digital ad sector plays a crucial role in boosting national economies. For example, in the United States, the digital advertising industry contributed $460 billion to the GDP in 2021, about 2.1% of the total. In the UK, the sector accounted for 1.8% of GDP in 2022. This shows how important digital advertising can be in driving economic growth.

One of the key challenges facing Saudi Arabia’s digital ad sector is the dominance of global platforms like Google and Facebook, which control 60% of the global digital ad market, Al-Abbad told Asharq Al-Awsat. This dominance results in a significant outflow of revenue and allows these platforms to control digital data and content. He warned that this could undermine Saudi Arabia’s national sovereignty over its digital economy.

To counter this, he emphasized that Saudi Arabia needs to build competitive local networks that can retain a larger share of the market. This will not only keep more revenue in the country but also strengthen the Kingdom’s control over its digital data and content.