UAE invests $35bn in development of Egypt’s Mediterranean coast region

The UAE and Egypt signed a deal to develop a prime stretch of its Mediterranean coast. (WAM)
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Updated 25 February 2024
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UAE invests $35bn in development of Egypt’s Mediterranean coast region

  • The deal, signed by a private consortium led by ADQ, a sovereign investment fund based in Abu Dhabi, is the single largest foreign direct investment in Egypt

LONDON: The UAE, represented by a private consortium led by ADQ, a sovereign investment fund based in Abu Dhabi, signed a landmark agreement with Egypt on Friday to invest $35 billion in Ras El-Hekma, a region on the Mediterranean coast 350 kilometers northwest of Cairo. It represents the single largest foreign direct investment in Egypt.

“In addition to acquiring the development rights for Ras El-Hekma for $24 billion, ADQ will also convert $11 billion of deposits that will be utilized for investment in prime projects across Egypt,” the Emirati state news agency, WAM, reported.

“The vision is to develop the region into a leading, first-of-its-kind Mediterranean holiday destination, financial center and free zone spanning over 170 million square meters and equipped with world-class infrastructure to strengthen Egypt’s economic and tourism growth potential.”

 

 

The Egyptian government will retain a 35 percent stake in the development.

Mohammed Hassan Alsuwaidi, the Emirati minister of investment, said: “With this signing, a new chapter begins in the long-standing bilateral relations between our two nations.

“Underscored by mutual respect and trust, this investment demonstrates the UAE’s commitment to supporting the government of Egypt in realizing the abundant potential of the local economy.

“As a large-scale infrastructure project, the planned Ras El-Hekma development will foster widespread impacts across multiple sectors, be a catalyst for job creation, and attract significant additional foreign direct investments in the years to come.”

ADQ said work to build the “next generation city” over 170 square kilometers — nearly a fifth of the size of Abu Dhabi city — would begin in early 2025. The city would feature investment zones, technology and light industry, amusement parks, a marina and an airport as well as tourism and residential developments.

Egyptian Prime Minister Mostafa Madbouly told a press conference that the deal would bring in $15 billion in the next week and $35 billion over two months — though he said $11 billion of that money would be converted into Egyptian pounds from existing UAE dollar deposits in Egypt’s central bank.

(With Reuters)


‘Future cities will be built for visitors, not just residents,’ Saudi tourism minister tells Arab News

Updated 10 November 2025
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‘Future cities will be built for visitors, not just residents,’ Saudi tourism minister tells Arab News

RIYADH: Saudi Arabia is positioning itself at the forefront of the global travel evolution by designing destinations that will target the tourists of the future, the Kingdom’s tourism minister has said.

Ahmed Al-Khateeb added that sustainability would serve as the guiding principle behind Saudi Arabia’s role in tomorrow’s global travel landscape.

Travelers’ habits and the tourism industry’s revenue sources have shifted dramatically in recent years, he told Arab News in an interview.

“People used to travel in groups. Today, they are traveling in smaller groups. Hotels used to make most of their revenues from rooms — now, they are making more from lounges and restaurants.”

And younger generations, empowered by technology, are also redefining how travel is planned and experienced, Al-Khateeb added. “They are driving their own itineraries on the go, which puts pressure on traditional travel companies that once organized large group trips. We are witnessing big shifts in the global travel market.”

Among the world’s fastest-growing tourism markets, China and India are reshaping international travel flows. “China has become the most important source market for outbound travelers, while India is expected to double its number of travelers in the coming years,” the minister said. “This opens a major opportunity for the Middle East — and Saudi Arabia in particular — to emerge as a top destination for international tourists.”

Since 2019, Saudi Arabia has recorded the fastest tourism growth among all G20 nations, said Al-Khateeb. “We have a very strong domestic market and a very strong religious market. Now, we have opened our doors for leisure, business and holiday travelers — whether they seek the Red Sea coast, the southern mountains, our major cities or our beautiful islands.”

Yet the Kingdom’s long-term vision for tourism extends far beyond the present, with destinations being built to serve both visitors and residents sustainably, he added.

“In the 1950s and 1960s, cities were built for residents,” Al-Khateeb said. “Today, in places like Greece, visitors outnumber residents three to one. The cities of the future must be designed for visitors as well — and that’s what we are doing in Saudi Arabia.”

Sustainability has become a non-negotiable element of all tourism development in the Kingdom, he added. “In the last two decades, sustainability has become extremely important. As we build new destinations like the Red Sea, we are fully aligned with sustainability regulations. Whatever we build today is environmentally friendly, ensuring not only environmental, but also social and economic sustainability.”

This principle lies at the heart of Vision 2030’s tourism transformation: “Sustainability is at our forefront whenever we build or operate any new destination,” he added.