Arab and local companies are negotiating with the Egyptian government to purchase plots of land in Marsa Alam for tourism projects with investments estimated at around $1 billion, a source familiar with the Ministry of Housing’s land offering program told Al Manassa.
The source, who requested anonymity, said the area of land under discussion amounts to 430 feddans (around 1.8 square kilometers), divided into 10 plots. Egyptian, Emirati, and Saudi companies are currently negotiating to acquire the land, while Qatari and Kuwaiti companies have also made inquiries.
The source added that the government aims to establish a variety of tourism projects in the coastal area, including hotels and resorts, as well as commercial and entertainment activities.
In April, Al Manassa reported that the government planned to launch a package of new residential and hotel projects in the Red Sea governorate in partnership with the private sector, with the first phase targeting investments of around $1 billion.
According to that earlier report, the plan includes offering nine to ten plots of land in the Red Sea region to local and Arab investors. The government is also considering the Ministry of Housing taking stakes in some developments because of their potentially high returns.
These moves come as part of a government strategy to expand tourism and real estate investments along the Red Sea coast. They follow the signing nine months ago of a contract between Emirati developer Emaar and Golden Coast to develop the Soma Bay project across an area of about 10 million square meters, with expected investments approaching 900 billion Egyptian pounds.
In February 2024, Prime Minister Mostafa Madbouly announced the signing of a major real estate investment deal with Abu Dhabi Developmental Holding Company to develop the Ras El Hekma project worth $35 billion, in one of the largest foreign direct investment deals in Egypt’s history.
Madbouly later oversaw the signing of another investment agreement between the New Urban Communities Authority and Qatari Diar to develop an urban project in the Simla and Alam El Roum areas on the North Coast, with estimated investments of $29.7 billion, making it the second-largest foreign investment deal after the Ras El Hekma project.
