Egypt's Sahel: from tourist hub to economic centre

Egypt's northwest coast, once known for its summer tourist resorts, is transforming into an economic hub that combines tourism, residential living, business, services, education, healthcare, and entertainment. The development of Alam Al Roum and Ras El Hekma is part of this shift, aiming to create a year-round economy that can attract foreign direct investment (FDI) and generate increased tourism and foreign currency revenues.

The Alam Al Roum project, launched by QatariDiar in partnership with the New Urban Communities Authority, covers 20.58 million square meters, with a 7.2km seafront. The first phase, costing around $4.3bn, includes four hotels, a marina, sports centers, shops, and restaurants. The overall masterplan consists of over 3,500 hotel rooms, an international marina for up to 370 yachts, an 18-hole golf course, 22km of lagoons, and a smart transport and water management system. The project is expected to create an estimated 30,000 jobs.

The Ras El Hekma deal, involving the United Arab Emirates, is even larger, with an investment of $35bn, including $24bn for development rights and $11bn in deposits. The Egyptian government retains a 35% stake in the project, which includes residential, tourism, commercial, and leisure districts, a free zone, a financial centre, hotels, marinas, an international airport, and new roads. The cumulative investment could reach $110bn by 2045, attracting investment from Emirati, Qatari, and international companies and brands.

The transformation of the coast from a summer market to a long-term regional and international investment space is driven by the influx of Gulf capital. This shift aims to attract foreign direct investment, expand hotel capacity, and increase tourism and foreign currency revenues, ultimately turning the coast into a sustainable economic engine for Egypt.