Arab tourists are already flocking to the North Coast, and developers are eyeing the other side of the Mediterranean as the competition. Rising interest in Ras El Hekma is pushing developers to think of a broader vision, one that positions the North Coast as a global destination on par with the tourist hotspots lining the Mediterranean. We spoke with top real estate and tourism players and analysts about Sahel’s future, including who the target audience is and what it will take to get there.

BACKGROUND- Marassi paved the way as Emaar became the first to turn its flagship Sahel development into a summer hotspot for Arab tourists with an offering that includes offering luxury hotels, high-end shopping, and entertainment experiences tailored to Gulf preferences. The government, too, has been actively pushing Arab tourism to New Alamein each summer.

Developers see international sales are already shifting from single- to double-digit percentages of total demand. That demand should continue to grow provided infrastructure matures.

Sell the destination, not the units: Ras El Hekma should be marketed as a full-fledged city, not a summer resort, Redcon Properties Chairman Tarek El Gammal tells us. “We’re not selling chalets on the sea — we’re selling a city.” Ora Developers CEO Haitham Mohamed agrees: “Promoting the North Coast as a global destination begins with reimagining what the coast can represent. It’s not about real estate alone, it’s about creating an identity… Successful global destinations create emotional connections, offer distinct experiences anchored in culture, design, and belonging, not just buildings on a beachfront.”

Who buys matters more than how much they pay. Modon’s Ras El Hekma is being designed as a permanent home — not a holiday escape — which will influence pricing strategies and set it apart from other North Coast developments, El Gammal says.

Build the global brand: The North Coast needs to be globally marketed as a distinct, year-round destination, Madaar CEO Ahmed Ehab agrees. M squared CEO Karim Malash echoed the point, adding that stronger branding efforts beyond summer-only perception must be backed by improved airport and road accessibility, all-season activities, and promo campaigns tailored specifically to multiple markets — how you market to GCC nationals isn’t the same as how you’ll entice Europeans or foreign residents of, say, the UAE.

Charter flights are already making a difference: Inbound tourism has grown over the past two seasons thanks to increased charter flights to Alamein Airport, Jaz Hotel Group CEO Alaa Akel tells us. The upcoming Ras El Hekma Airport could double those figures. More airlift will be key to unlocking demand from Eastern Europe and Mediterranean markets, he adds.

Entertainment is king. Global-standard attractions — from cinemas and conferences to water sports — are already baked into the masterplan for Ras El Hekma, Akel said. Developers have the funding in place, which could bring the city to life in just three years. SODIC General Manager Ayman Amer agrees: The North Coast needs a strong entertainment offering to compete with European hotspots — which is why SODIC is bringing international brands including Nobu to its projects in Ras El Hekma.

Marakez is banking on the appeal of homegrown brands with global chops. It’s bringing Siwa’s international eco lodge Adrère Amellal to Ramla in Ras El Hekma, Executive Vice Chairman Dasha Badrawi tells us. Marakez is also teaming up with renowned jewelry designer Azza Fahmy to launch the Azza Fahmy Beach Clubhouse at Ramla, with the aim of providing an unmatched experience to both local and international visitors.

Arab tourists still come first. Gulf travelers spend more than do Europeans — and they’re already buying, investing, and feeling at home in Sahel, Madinet Masr CEO Abdallah Sallam explains. “Look at cities like Paris and London — Gulf tourism keeps them booming.” Developers should focus first on Gulf and European markets before setting sights on Asia or the US, sallam adds. For Gulf investors, Ras El Hekma could offer returns that outpace Dubai or London, Tatweer Misr CEO Ahmed Shalaby tells us, adding that the city could even rival Riyadh in attracting capital.

Build what Bodrum doesn’t have. If the infrastructure and year-round services fall into place, the North Coast could lure tourists from destinations like Turkey’s Bodrum — which largely shuts down in winter — Sallam suggests.

THIS IS SMART- “Why not host global expos here instead of freezing in Munich come January?” asks SODIC’s Amer. Akel agrees: There’s real potential to activate conference and exhibition tourism outside of the summer window.

Sports could be the next big draw. Sporting events could sustain the coast well past summer, several developers tell us. SODIC’s Amer sees potential in training camps and winter tournaments — keeping hotels and restaurants busy year-round.

Think business hubs and retirement havens. Modon’s Ras El Hekma is also envisioned as a business and services center, El Gammal says. As a free-service zone, it could house corporate HQs and accommodate foreign professionals. Shalaby and Ehab both believe that expanding healthcare and medical tourism offerings could help attract European retirees, and maybe even convince them to settle down for good.

WHAT WE CAN LEARN FROM GLOBAL MISFIRES?

Can Ras El Hekma succeed where others have stumbled? Aya Ghanem, head of strategic consulting for Africa at JLL, points to high-profile international projects that failed to draw the foreign buyers they were designed to attract.

Spain shows that supply doesn’t create demand: In Spain, multiple cities and coastal developments were designed with international buyers in mind — particularly from the UK and Germany. While these projects initially sold well, many later became seasonal ghost towns due to the lack of an integrated community and services. Ghanem noted that simply selling units isn’t enough if the development can’t attract permanent residents and long-term users.

Greece — a vision without execution: Greece similarly launched large tourism-focused developments targeting cost-conscious European buyers seeking sun-soaked destinations. But they lacked meaningful ties to the local economy and failed to offer legislative or procedural incentives including long-term residency and tax breaks. “They looked good on paper,” Ghanem says, “but had weak occupancy and underperformed on sales.”

Turkey — Strong marketing, weak stability: Turkey attracted large numbers of Arab and foreign investors over the past decade thanks to aggressive marketing and flexible ownership policies. Still, political and economic instability hit the real estate market hard. Turkey underscores a key lesson: foreign demand is skittish and reacts quickly to changes in the business environment — no matter how attractive the offerings, Ghanem explains.

Dubai’s edge: a full ecosystem: Dubai, by contrast, stands out as a relative success story — it combines developed infrastructure, clear legislation, flexible residency and ownership policies, and a stable economic backdrop. “Dubai’s success isn’t about the buildings,” Ghanem tells us. “It’s about the ecosystem of operations, services, and governance.”

Avoid these five pitfalls: Based on those case studies, Ghanem outlines five key risks Egypt should avoid as it develops the new Sahel:

  • Focusing solely on seasonal residential sales without a sustainable operations model;
  • Failing to define the city’s identity — is it a resort, business hub, education destination, or something else?
  • Delaying rollout of core services like schools, hospitals, and commercial activity;
  • Lacking clear, transparent foreign ownership policies and procedures;
  • Targeting the wrong buyer segments or relying on cliché marketing;

So what would make Ras El Hekma stand out? Ras El Hekma will succeed, according to Ghanem, if it moves beyond seasonal tourism to adopt a fully integrated urban identity. That includes a day-one operations and services strategy, competitive incentives for foreign buyers such as full ownership, long-term residency, tax exemptions, and meaningful links to the broader economy — including education, healthcare, and service sectors. “This can’t just be another real estate project,” she said. “It’s a test of whether Egypt can launch a global-standard coastal city with real operational depth.”

The bottom line: Proximity to the sea and a good location won’t cut it on their own. Lasting success, Ghanem notes, requires a well-planned urban and economic vision, attractive services, and ownership policies tailored smartly to international markets.

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