Egypt’s move to bring in foreign investment into is well underway and some of the strongest interest is centred on areas where there has already been success, including around major tourist developments.
After the country began building the now-flourishing New Alamein City as a hot-spot resort in the northwest in 2018—now home to educational institutions and high-profile government offices and still being expanded—other major deals followed.
The most notable is a multi-billion-dollar deal over Ras El-Hikma Bay, in the heart of the North Coast region, near New Alamein. It adds to the area’s credentials as an area for major inward investment as Egypt develops the kind of resorts that will offer international attractions on par with comparable major destinations in the Arab world and Europe.
As the country seeks to gain momentum as a major player in the region, the strategy is to make Egypt attractive for an expected influx of Arab and Gulf investments in similar fields, particularly in real estate and ancillary industries. New Alamein is the signature achievement of the effort, which has top-level government backing. It developed fast, transforming what was a desert area littered with landmines from World War II into a fully integrated global technological city.
This is the story of how a vision for an international destination in Egypt’s desert was realised and how the precedent it created provides a template for the next phase of investment into the country for the next phase of economic growth, including the Ras El-Hikma Bay deal.
Read more: Egypt’s new Ras El-Hikma resort attracts $35bn from UAE
The state-of-the-art coastal city spans 50,000 acres. It is divided into different sectors for tourists, on the Mediterranean shore, and permanent residents. There is an investment sector south of the Alexandria-Matruh International Road and a historic zone, which includes the cemetery from the World War II battle of 1942, when victory for the Allies against the Nazis help define the outcome of the conflict.
Global status
New Alamein is now part of what has become known as the “fourth generation” of smart cities and has status as an international landmark. Its number of hotel rooms already exceeds 15,000. It also hosts an international airport, accommodating charter flights. It is Egypt’s leading example of the concept of “new city tourism,” which has already been seen in Saudi Arabia, the United Arab Emirates, and South Korea and includes attractions from shopping facilities to major festivals.
The New Alamein development received strong support from major investors. It focuses on upscale facilities that attract high-spending visitors and seeks to boost national revenue by competing with established rivals in Europe that have long been popular with Arabs, especially the rich and members of royal families.
When the government launched the New Alamein project on its northwest coast, covering an area of 500 kilometres from Alamein to Sallum, infrastructure development led the way. According to official data from the Egyptian presidency's website, the massive investment included a network of roads, highways, and railways connecting the area to the rest of the country. The network served around 34 million residents and created 11 million job opportunities.
Real estate prices in New Alamein have risen sharply as its popularity has grown. The city’s tourism sector is comprised of several areas, including the hotel district around Alamein Lake, the city centre, the distinguished residential district, Alamein Gardens, Al-Fanara Marina, a conference centre, an entertainment area, the cultural centre, tourist housing, lakeside residences, and the exhibition grounds.
The city includes beachfront towers, villas, and residential buildings, as well as commercial and entertainment services that offer residents and visitors a unique luxury experience. New Alamein City is more than a top-end tourist hotspot. As a high-tech, fourth-generation smart city designed for sustainable development, it has fundamentally changed the map of the North Coast.
It isn’t just a touristic city but also a growing centre for permanent, year-round residents. Its international appeal helps to support the real estate market, but increased sales also come from investment demand and its appeal to full-time inhabitants. There is also support from the wider development in the North Coast region and a national trend for higher property prices. In New Alamein, typical prices per square meter exceed $8,000, with Arabs comprising 35% of the market.
According to a study from the Cairo-based strategy company Board Consulting, the total sales of the top 10 real estate companies on the North Coast amounted to approximately $6.7bn in the first half of this year, compared to $3.6bn in the same period last year.
Defying regional tension
Egyptian tourism is defying regional tension. According to government figures, national tourism revenue rose to $6.6bn in the first half of 2024, and the number of tourists arriving during the same period reached 7.1 million. Tourism contributes up to 15% of Egypt’s economic output, alongside revenues from the Suez Canal, remittances from Egyptians abroad, and exports.
International financial consultancy Fitch Solutions expects Egyptian tourism revenues to exceed $15bn in the new fiscal year 2024-2025, predicting that the number of tourists will reach 15.9 million in 2024, driven by the depreciation of the local currency and a government push to Egypt tourism. And according to Travel Trends 2024, a report by the Mastercard Economics Institute, Cairo emerged as one of the most popular global destinations.
White sand and turquoise waters
The New Alamein Festival has helped put international eyes on the resort city. Held for two consecutive years, this festival promotes Arab and foreign tourism, as well as art. It offers tourists an alternative from Red Sea cities like Sharm El-Sheikh and Hurghada to equivalents on the Mediterranean and the North Coast, which provide an alternative route for revenue that might otherwise have been lost due to Houthi attacks on shipping in the Red Sea.
While Sharm El-Sheikh and Hurghada are known for their coral reefs and marine activities that attract visitors, the North Coast is famous for its turquoise waters and white sand. The different kinds of appeal mean that the new destination can complement the appeal of Egypt’s established tourist centres. Some New Alamein hotels have recently been fully booked.
Real estate expert Dr Meguid Abdel-Azim told Al Majalla that New Alamein City’s “entertainment expansions and investment projects” would also help it “become a destination for foreign tourism”, adding: “The city is witnessing the beginning of a boom in international entertainment and sports, with real estate values rising significantly due to government investments making the North Coast a year-round destination, not just a summer one.”
Dr Iman Eid, a professor of maritime transport economics, put a figure on what she called “the city’s real estate wealth”, estimating it at “over 158bn Egyptian pounds”, or $3.25bn. And the blend of tourist appeal and investment demand for real estate would create conditions “similar to cities like Dubai and Singapore.”
She also backed New Alamein City’s credentials for sustainable development and pointed to wider environmental benefits: “The construction of new cities helps alleviate population congestion in major cities like Cairo, thanks to improved transportation links that connect these cities to their surroundings.”
The $35bn Ras El-Hikma deal was struck with the Abu Dhabi Developmental Holding Company. After that, the Egyptian government struck a significant deal with Talaat Moustafa Group to develop 23 square metres on the North Coast, with total investments reaching $21bn. This agreement aims to establish a global project featuring a large international marina for yacht cruise ships in the Mediterranean. It will soon become the next frontier in Egypt’s expansion into new and fast-growing international tourism and economic development markets.
