The government is working to position the Red Sea as a year-round global destination with four to five new tourism projects being in the pipeline, covering 3-4 mn sqm, a government source told EnterpriseAM. There are already offers on the table for projects stretching from Marsa Alam to Hurghada.

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What’s driving demand? The Red Sea is a tourism hotspot that is currently looking at a shortage in hotel rooms. Hotels are already running at 100% occupancy through January, according to the government source — a squeeze that has investors piling into new projects.

Land in the area was historically capped at around USD 130 (EGP 6.3k) per sqm, our source said. Following the announcement of Emaar Misr and Citystars Properties’ landmark EGP 900 bn Marassi Red Sea development, authorities are now moving to revalue plots in the area. Pricing will factor in existing infrastructure and aims to maximize state revenues, the source said.

The government is looking to raise EGP 150 bn from land sales in the Red Sea, with 14 land plots being offered to private investors at an indicative rate of EGP 4.5k per sqm, a government source told Asharq Business. The plots are expected to attract tourism, service, and industrial projects and generate some 5k jobs.

What’s next: Authorities are cataloging Red Sea plots to map out new investment zones. Once the process is complete, the Tourism Development Authority will roll out fresh investment prospects, with updated mechanisms and incentives to fast-track projects.

REMEMBER- Egypt wants to nearly double annual tourist arrivals to 30 mn by 2030, up from 15.7 mn in 2024, and expand hotel room capacity to 500k from today’s 228k. Officials are banking on Gulf capital and a more structured approach to land allocation to get them there.

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