Gulf and local companies are negotiating with the government to buy about 63 feddans in the city of El-Quseir in Red Sea Governorate allocated for tourism activity, a source at the Housing Ministry told Al Manassa.
The source, who asked not to be named, said the plot under negotiation is located on the Red Sea coast and has an initial value of $130 million. The project would increase the number of hotel rooms to keep pace with rising numbers of tourists.
The move comes as part of a government push to expand tourism and real estate investment in the Red Sea, about 10 months after Emirati developer Emaar and Golden Coast signed a contract to develop the Somabay project in the same governorate, over an estimated area of about 10 million square meters, with expected investment of nearly 900 billion Egyptian pounds (about $18 billion), in an area highly sensitive to any regional tensions.
The source said the Ministry of Housing requires payment of 20% of the land’s value as a down payment, with the remaining amount to be paid in equal annual installments at a fixed 5% interest rate, starting three years after the land’s final allocation, to give the project developer time to operate at least the first phase and generate financial returns.
The source said total project investment will be determined once the negotiating companies’ plans are known and the most suitable one is selected. “The project aims to maximize the private sector’s role in the local market, continue the partnership approach with investors, and create attractive opportunities for local and foreign partners,” the source said.
Prime Minister Mostafa Madbouly on June 21, 2026, witnessed the signing of a partnership agreement between Egypt’s MIDAR and the UAE’s Majid Al Futtaim to develop an urban development project in Mada city in New Cairo, with investments exceeding $3 billion.
In February 2024, Madbouly announced the signing of a major real estate investment deal with the UAE’s Abu Dhabi Developmental Holding Company to develop the Ras El-Hekma project, worth $35 billion, in the largest foreign direct investment deal in the country’s history.
Madbouly later witnessed the signing of another investment agreement between the New Urban Communities Authority and Qatari Diar to develop an urban project in the Samla and Alam El-Roum areas on the North Coast, with estimated investments of $29.7 billion, making it the second-largest foreign deal after Ras El-Hekma.
