Egypt’s North Coast is becoming a new hotspot for Gulf investments thanks to the influx of capital into the region. The region, traditionally a getaway for the wealthy, is undergoing a real estate transformation expected to cost $70 billion over the next two decades. Another $150 billion in Gulf capital is expected to flow into the industry. Since 2021, Gulf countries have invested $59 billion in Egypt and Qatar is considering a $3 billion package. 5 billion tourism project. Significantly, Emirati state fund ADQ invested $35 billion in Egyptian real estate and acquired development rights in Ras El Hekma.
Ras El Hekma 170-square-kilometre peninsula will be developed by Abu Dhabi-based Modon Holding. The project includes residences, resorts, retail facilities, entertainment, and public facilities. The development is aligned with Egypt’s vision to receive 30 million tourists annually by 2030, up from last year’s figures. Fifty percent of the Gulf high-net-worth individuals, who desire to own holiday homes in Egypt, are interested in the North Coast.
The financial condition of Egypt is also a factor in the flow of investments. Besides, the stability of Egypt is crucial for international trade corridors. Current projects focus on tangible benefits: the planned Ras El Hekma free zone will have special tax and customs arrangements to attract investors (hence, the government debates autonomy issues).
Property prices on the North Coast are rising sharply: villa prices increased 15%. The average price per square meter was $420. The off-plan sales for Ras El Hekma, a $1.3 billion development along Egypt’s North Coast, generated $210 million in 48 hours. Additionally, the government’s decision to allow foreigners to own property and the steady increase in construction costs due to inflation. There are concerns regarding the possible displacement of locals and the threats posed by coastal erosion, but the government has promised to compensate those affected.
An example is Marassi North Coast by Dubai’s Emaar. Marassi, into which $4 billion was invested, drew 4 million tourists this year. The complex employs 20,000 people. Emaar plans to expand another billion and property prices increased significantly, where investors saw a potential fivefold return on investment.
