The planned city is expected to bring in $35bn in foreign direct investment (FDI) within two months. Credits: Leonid Altman/Shutterstock.

The governments of Egypt and the UAE have signed a deal to develop the Ras El Hekma peninsula in a move to bring up to $35bn in FDI within two months.

The funding, which will come from Abu Dhabi Developmental Holding Company (ADQ), will go into developing a new urban, business and tourism centre in Egypt. The project will entail new residential districts, hotels and tourist resorts, as well as entertainment venues and public service buildings including hospitals, schools and universities.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Officials in Cairo hope the overall project will attract a minimum of $150bn in investment in the coming years. Egypt’s Prime Minister, Mostafa Madbouli, added that the planned city will include a large marina for tourist yachts and ships.

“We expect the new city to attract eight million tourists to Egypt upon completion,” he said.

Ras El Hekma lies around 200km west of Alexandria, Egypt’s second-largest city. The recent development marks the latest in a series of expansive urban area projects across the Middle East and North Africa (MENA) region. In Saudi Arabia, officials plan to build a new 26,500km² town called Neom or “The Line”.

Last year, in October, the kingdom announced the launch of its strategic investment arm, the Neom Investment Fund, to attract funding for the city’s 14 priority sectors. Upon completion, the Saudi Government hopes to turn Neom into a financial and global trade hub for businesses, competing with the likes of the country’s capital, Riyadh, and its second city, Jeddah.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In parallel, Egypt is building a new capital just outside Cairo, which will host the country’s ministries.