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Egypt signed a deal to sell 10 million square meters of the Red Sea coast to Saudi and Emirati companies, touting it as the largest tourism project on the Red Sea coast.
The two partnerships, "Emaar Misr" and "City Stars," signed contracts on Sunday at a press conference held at the prime minister’s office in the New Administrative Capital.
The Egyptian side announced that the “Marassi Red Sea” project has been launched with investments of $18.5 billion, aiming to become a world-class tourist destination in Egypt.
The project features 400-meter-long sea docks and navigable waterways running through its heart.
In a show of support, Egypt noted that the partnership could only materialize following the successful efforts of state authorities to secure an extended land-use period and to authorize Emaar as the developer.
The project is planned for completion within four years.
Egyptian Prime Minister Mostafa Madbouly celebrated the deal, stating, “The project will establish a world-class yacht marina, potentially creating added value for the Egyptian economy.”
Egypt is following the model of its previous Marassi North Coast project, officials stated.
The deal brings together Emirati businessman Mohamed Alabbar, founder of Emaar, and Saudi investor Hassan Sharbatly in a strategic partnership as a global tourist destination.
However, the ambitious project has drawn criticism from observers and experts, who question the transparency of such asset sales.
This is not Egypt’s first deal of its kind, as the country has previously sold portions of its land under the guise of development projects and attracting foreign investment. Similar to its 2024 signing of a contract to develop and expand Ras El Hekma City on the North Coast in a joint investment partnership with the UAE.
At the time, the deal was described by some as a sale of the country’s assets, but Madbouly called it “the largest foreign direct investment deal in the country’s history.”
The Ras El Hekma deal, signed in February 2024, was valued at $35 billion.
Egyptians have criticized Gulf investors for focusing on real estate, hotels, resorts, and land acquisition, rather than establishing factories that promote exports and generate foreign currency.
They argue that investments would be more beneficial in sectors such as military technology, aviation, artificial intelligence, scientific research, and education development.
“Egyptian land is being taken piece by piece for foreigners under the labels of resorts, hotels, and yacht marinas,” he noted, stressing that the country needs genuine investment that “builds industry, creates jobs, and boosts the economy.”
Emaar Misr for Development, a subsidiary of UAE-based Emaar Properties, announced in a disclosure to the Egyptian Stock Exchange that its subsidiary, Sky Towers for Real Estate Development, will lead a new project in partnership with Golden Coast for Hotels, Resorts, and Entertainment Projects.
The companies did not disclose their respective stakes or the project’s expected completion timeline.
Emaar, the largest publicly listed real estate company in the UAE, already holds significant investments in Egypt, including the Marassi project in Sidi Abdel Rahman on the Mediterranean coast and the Uptown Cairo development in the heart of the capital.
Regarding Emaar’s broader investments in Egypt, the company’s founder stated that current investments total $18 billion and are expected to rise to $25 billion over the next three years, according to a recent press interview.
Emaar founder Alabbar sparked considerable debate with comments on the company’s potential role in developing buildings in downtown Cairo, noting that discussions with the Egyptian government are ongoing.
He explained that the government has not yet taken possession of the buildings from the ministries, after which tenders are expected to be issued to local and international real estate firms, with Emaar likely to be among the first to apply.
“Because I believe in the power of cities and the strength of Cairo,” Alabbar said, emphasizing the importance of well-planned urban development.
He advised the government to pursue a large-scale, organized project, citing Lebanon’s Solidere project as a model.
Alabbar proposed that the development covers 40 to 50 feddans, with planned streets, restaurants, and hotels. He added, “If Downtown Dubai attracts 120 million visitors annually, this project in Cairo could potentially draw half the world’s population.”
Speculation has long surrounded Alabbar’s ties to Israel.
In a press conference that stirred debate, Alabbar stressed that his focus is not on commercial dealings with Israel. He stated, “I’m not interested in business. Can we meet each other first? Can our kids meet your kids? Can we exchange CVs?” He added that fostering personal and cultural connections, rather than pursuing immediate business interests, is the ultimate goal.
Despite these remarks, Alabbar’s perceived links to Israel have fueled public concern over the Red Sea project. Observers have warned of “the infiltration of Israeli occupation agents into Egyptian land,” raising questions about which territories might be sold next and to whom.
Israeli media revealed in 2021 that Alabbar, along with four other figures, had donated 550 million shekels ($170 million) over 18 years to Israeli projects and initiatives supporting the country’s poor.
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