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Prime Minister Mostafa Madbouly during the press conference announcing details of the Ras El-Hekma deal. February 23, 2024.

Egypt talks with UAE investors for planned new city west of Ras El-Hekma

Abdallah El-Bastaweesy
Published Wednesday, October 8, 2025 - 12:08

Egypt is planning a new city west of Ras El-Hekma, a senior official at the New Urban Communities Authority told Al Manassa. Set to cover approximately 110,000 feddans/462 km2, the city is expected to feature several independent tourism zones.

Egypt is pursuing this deal as part of its strategy to expand Gulf-backed tourism and real estate megaprojects along the North Coast, the official told Al Manassa on condition of anonymity due to the sensitivity of the negotiations. This move follows a surge in interest from Emirati and Qatari investors, building on record-breaking deals signed over the past year.

Infrastructure is projected to begin in 2026 following the completion of the master plan. “We’re working on transforming the Samala and Alam El-Roum zones into fully integrated tourist cities that expand the Ras El-Hekma corridor westwards,” the official said.

The official confirmed that talks are currently underway with Emirati investors over one of the zones. A formal financial and technical bid is expected once terms are finalized, the source added.

This push builds on Egypt’s burgeoning foreign investment drive. Earlier this month, Qatar agreed to purchase 5,000 feddans in Alam El-Roum for a $4 billion tourism development.

Alam El-Roum, named after a nearby Roman-era fortress, lies east of Marsa Matrouh, approximately 50 kilometers from Ras El-Hekma. The latter site gained prominence in February 2024, when it became the focus of a landmark $35 billion investment deal with UAE, the largest foreign direct investment package in Egypt’s history.

The planned city marks the latest in a string of state-led megaprojects aimed at positioning Egypt’s Mediterranean coastline as a magnet for regional capital. Modeled on developments like New Alamein, these projects combine luxury housing, hospitality, and infrastructure into master-planned urban destinations.