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.
