The Egyptian government has announced plans to prepare the Ras Banas region on the Red Sea for investment opportunities, similar to the development deal for Ras El-Hekma that was finalized with the UAE earlier this year, a ministry statement showed.
Further details have not yet been provided.
Minister of Housing, Utilities, and Urban Development Sherif El-Sherbiny said that this initiative aims to enhance Egypt’s efforts to attract more tourists, with development plans inspired by the successful Ras El Hekma project.
Ras Banas is home to the world’s largest pristine coral reef ecosystem, stretching 50 kilometers into the Red Sea and encompassing the historic Port Berenice. The government aims to leverage this unique ecological asset to develop a thriving investment hub.
This initiative follows the landmark $35 billion Ras El Hekma project deal announced in February, which represents the largest foreign direct investment (FDI) deal in Egypt’s history. Under that agreement, the government retained a 35% stake, ensuring a share of the project’s profits.
During a press conference, Minister El-Sherbiny emphasized the importance of conducting transactions with Egyptian investors in Egyptian pounds. This strategy aims to reduce the outflow of U.S. dollars from local banks and curb the rise of alternative currency markets.
FDI targets
Egypt aims to achieve foreign direct investments exceeding $20 billion and an export volume of more than $140 billion by 2030, Prime Minister Mostafa Madbouly announced during a press conference on September 25.
Madbouly emphasized that the government is fully committed to enhancing Egypt’s investment environment, creating opportunities for global firms to contribute to the country’s growth. “Our focus is on making Egypt a center for international business, particularly in sectors like manufacturing and production,” he said.
He also announced that by the end of the month, the Minister of Finance will finalize a package of tax incentives to further improve the investment climate.
Other ministry decisions
El-Sherbiny also announced plans to establish a dedicated platform for Egyptian foreign partnerships, aimed at facilitating investment opportunities in U.S. dollars through overseas transfers.
In addition to these investment initiatives, the housing ministry will roll out 70,000 residential units under the “Housing for All Egyptians” program next November. This initiative will allocate 60,000 units for low-income citizens and 10,000 units for those with medium incomes, addressing the critical housing needs of various segments of the population.
El-Sherbiny further revealed the creation of investment funds designed to manage government project units, allowing citizens to participate and capitalize on available opportunities. However, he expressed concerns about a potential real estate bubble, noting that property remains a preferred savings instrument for many Egyptians.
