Saudi Arabia has signed with Egypt an investment agreement to develop Egyptian lands in south Sinai to become part of a planned mega-city and business zone unveiled by Saudi Arabia last October.
The two countries have set up a $10 billion joint investment fund (Egyptians' share of this fund include the long-term leases) to invest in lands located on the Egyptian side as part of the mega-city project. The announcement was made during a visit paid by Crown Prince Mohammed bin Salman, Deputy Crown Prince and Minister of Defense, to Cairo where he met President Abdul Fattah al-Sisi.
Reuters reported a Saudi official as saying that Egypt has committed more than 1,000 square kilometers of land in the southern Sinai Peninsula to NEOM project.
Prince Mohammed previously announced plans for the 26,500 square km zone, known as NEOM, at an international investment conference in Riyadh. Officials said public and private investment in the area was eventually expected to total $500 billion.
The mega-city, with its own judicial system and legislation designed to attract international investors, is to focus on industries such as energy and water, biotechnology, food, advanced manufacturing and tourism, according to officials.
It is part of bold moves by the 32-year-old heir apparent to wean the world’s top crude exporter off oil revenues.
Riyadh and Cairo also signed an environmental protocol on Sunday aimed at preserving the Red Sea’s coral reefs and preventing “visual pollution”, the official said.
Riyadh’s part of the new joint investment fund will be cash to help develop the Egyptian side of NEOM, which was conceived as spanning across Saudi Arabia, Egypt and Jordan.
Saudi Arabia plans to set up seven maritime tourist attraction areas in the Red Sea, as part of NEOM, including cities and tourism projects.
Moreover, Saudi Arabia will establish more than 15 seafront and hundreds of resorts. And on the Jordanian side, Amman will focus on developing Aqaba.
In Egypt, the project will focus on the regions of Sharm el-Sheikh and Hurghada, which will become the sites of new attractions.
In cooperation with Jordan and Egypt, Saudi Arabia will work on attracting European cruise and tourism companies operating in the Mediterranean, during the summer season, in order to work later on the Red Sea project.
The Red Sea Project, made up of some 50 islands, will offer a nature reserve, coral reefs and heritage sites. Authorities have said it would break ground in 2019 and complete its first phase by late 2022.
Notably, the Kingdom is currently negotiating with more than seven tourism and cruise companies and planning to build yacht marinas.
