Imagining Ras El Hekma: Back in February 2024, when Abu Dhabi acquired the development rights to the Ras El Hekma triangle for USD 35 bn, the headlines were all about the moment: It was a lifeline — a historic influx of capital that promised to pull our economy back from the brink almost overnight. For weeks, the conversation centered on the sheer scale of it: The largest agreement on FDI in our history, unmatched in size, scope, and ambition. Then the noise faded. Questions have quietly bubbled up since.

You can expect to hear a lot more about Ras El Hekma later this summer or early fall. That’s when our sources expect Modon, the UAE-headquartered developer tasked with bringing it to life, is expected to give the nation a glimpse of what it’s planning. We’re excited about the project and what it means to the nation and the economy — whether you’re a business leader or thinking as a potential homebuyer, you need to factor the North Coast in general and Ras El Hekma, in particular, into your plans.

To help you, we’re asking: What makes Ras El Hekma different? And more importantly, how can it become a catalyst that redefines urban development — not just in one coastal stretch, but across the entire North Coast and, perhaps, beyond?

But first, a quick geography lesson: The city of Ras El Hekma will stretch from kilometre 170 to kilometre 220 on the Alexandria-Matrouh Road. It’s a few klicks west of TMG’s SouthMed, which has racked up over EGP 350 bn in sales since its launch in summer 2024.

Ras El Hekma is a new centre of gravity on the coast: The broader area of Ras El Hekma (as distinct from the as-yet unnamed city Modon will build) is currently the hottest spot in Sahel — especially since last year — witnessing numerous luxury offerings from the biggest real estate developers…

In the line up: Projects like Mountain View Ras El Hekma, Soul by Emaar Misr, The Med by People and Places, Swan Lake by Hassan Allam Properties, Caesar, June, and Ogami by SODIC line up, all the way to Ramla by Marakez, which is directly adjacent to the Ras El Hekma triangle. Development extends beyond the Ras El Hekma triangle with other projects including Shehab Mazhar's Sidi Heneish Village and Marsa Bagoush, Ora Developers' Silver Sands, and Palm Hills Developments' Hacienda Heneish, ending roughly at Travco's Almaza Bay.

“This triangle will be the new center of the North Coast,” says Abdallah Sallam, CEO of Madinet Masr. “This project will include a real city, not just a resort — a city with an airport, global tourism attractions, and medical and industrial facilities serving all the areas currently being developed on the coast.”

Sahel may be “predominantly a destination for Egyptians today,” says Marakez Executive Vice Chairman Dasha Badrawi, but that’s changing as it becomes increasingly popular with holidaymakers who live abroad.

The balance will shift with time as the infrastructure matures — more airports, hotel rooms and activities. “We have already announced the Adrère Amellal hotel in Ramla and are in advanced stages of finalizing our plans for a second, larger hotel,” Badrawi adds.

Upscaling is the name of the game: Only “Category A" players are being allowed to build communities in Sahel, a senior government source tells us. Developers must have on board consulting firms with international experience to meet the needs of Sahel’s new clients, the source notes. It’s a deliberate move to ensure consistency, scale, and integration across projects as Egypt looks to transform the entire stretch into a world-class tourism and urban development destination.

Our offering will have to improve to compete with international destinations. “In Ramla, for example, we have placed The Town in the heart of the project on the seafront with underground parking for visitors. Our sports and leisure activities occupy 10 acres and include tennis, padel, basketball courts, fitness studios, a semi Olympic pool and multi purpose courts,” Badrawi told us. Significant amenities are the table stakes to attract holidaymakers — let alone making possible the dream of year-round residents.

More developers are beginning to introduce a wider selection of international brands and high-end hospitality, shopping, and fine dining experiences along Ras El Hekma. SODIC, for example, plans to have a Nobu hotel and restaurant at Ogami, in addition to launching Dubai’s Surf Club at June next month. “If you’re looking at international destinations like Ibiza or Southern France, they mainly depend on entertainment,” SODIC General Manager Ayman Amer told us.

“I see Sahel season extending to four months and even longer in the very near future,” the SODIC GM adds. Remember the “old days” of Gouna in the early 1990s? It was considered a far-off destination and people shied away from going there — now, Cairenes flock there on weekends year-round, Amer notes.

“Designing a place for permanent residents is very different from developing second homes or vacation homes,” El Gouna CEO Mohamed Amer explains. The planning considerations are different: Having a broad vision of the intended outcome is absolutely key — “and I have no doubt that this is going to be the case for a project as huge as Ras El Hekma”, he added.

You have to be very deliberate about the community you want to build. “If there is one thing that is critical for the continuation of El Gouna, it’s the community. That, in my opinion, is going to be the key. The way the community is built will define the longevity and the long-term viability of the entire development… Today, 40% of Gouna’s sales are generated internationally,” EL Gouna’s Amer told us.

The Ras El Hekma triangle is not one project, but many independent developments chained together, so there’s going to be a very wide range of clients. “I don’t want to talk on somebody else’s behalf, but I imagine a big part of the target market is going to be international,” the Gouna chief added.

Two game-changing licenses: Modon Holding — the master developer of Ras El Hekma triangle — received two key approvals in May 2024 for its project; one to build an airport to serve the area and another to establish an 18 mn sqm free-service zone, Redcon Properties’ Tarek El Gammal explained. This economic zone will help position Ras El Hekma as a fully integrated destination — inspired by Dubai’s DIFC model — with a special focus on attracting European firms looking to use Egypt as a gateway to 22 countries, including 18 in Europe.

Beyond lagoons and luxury villas: El Gammal took issue with the limited vision that has long shaped North Coast development, which has largely been focused on high-end villas and artificial lagoons. Modon’s Ras El Hekma, by contrast, is envisioned as a real city — complete with high-quality education, industrial infrastructure, and business facilities alongside its tourism offerings. The idea, he said, is to attract diverse residential patterns, including full-time residents, not just seasonal vacationers.

Modon is building a dream team: Last year, Modon inked a pile of agreements with local, regional, and international players to get the project off the ground, including:

  • A framework agreement with local construction giant Orascom Construction for it to be a key contractor for the project's first phase;
  • An MoU with Hassan Allam Holding to cooperate on projects in the infrastructure, energy, and water and wastewater treatment, and special building sectors;
  • A memorandum of understanding with TAQA Arabia to explore cooperation on greenfield utilities, water desalination, and electricity projects;
  • An MoU with Elsewedy Electric to look into supplying building materials and collaborating on industrial park development, operations, and maintenance;
  • A letter of intent with Elsewedy Industrial Development to build and operate an industrial zone over a 10 mn sqm to the south of Ras El Hekma;
  • An MoU with Abu Dhabi Airports to collaborate in strategic airport planning, development, and operations;
  • An MoU with e& Egypt to help design and implement smart city infrastructure, from 5G networks and IoT-enabled solutions to city-wide data analytics systems;
  • An MoU with Lulu Retail to develop and operate hypermarkets and other retail facilities;
  • An MoU with Valderrama to develop and operate golfing facilities;
  • An MoU with Candy International to look into developing luxury real estate;
  • An MoU with US-based luxury hotel management company Montage International for the development and management of luxury hotels;
  • An MoU with the French hospitality company Accor and Ennismore to operate hotels and resorts;
  • An MoU with UAE player Burjeel Holdings to develop healthcare facilities and collaborate on public health programs.

The development area earmarked for the Ras El Hekma triangle is more than double the size of Alexandria, El Gammal said. For context, Marassi — one of the North Coast’s flagship developments — spans 1.5k feddans and has taken some 20 years to reach 80% completion. That scale makes the timeline for Ras El Hekma an ambitious challenge in and of itself, he noted.

The project targets some 8 mn high-spending tourists annually, marking a clear shift away from Egypt’s traditional low-cost tourism model. It’s expected to feature a fully equipped international airport, a diversified hospitality portfolio, mixed-use neighborhoods, and fully integrated entertainment zones. El Gammal expects the Ras El Hekma area to eventually create 1.5 mn jobs and accommodate some five mn people — both permanent residents and workers. The aim is to set a new regional standard for coastal development while supporting Egypt’s push into real estate exports through international sales, he said.

Some expect a different first move: While many are bracing for a classic sea view launch in the project’s first phase, others see a different play taking shape. “The first phase from Modon may see them launching a golf course area deep in the city, which I think is a very smart thing to do to show that it’s not just a beach resort,” an industry player told us.

Ripple effect: Neighboring areas could see a tourism and investment boom. The Ras El Hekma project is set to have a positive knock-on effect on surrounding areas like Sidi Abdel Rahman, which are expected to benefit from infrastructure upgrades, rising land values, and more commercial activity, Savills Egypt told us.

These areas are likely to evolve into standalone investment hubs catering to mid-market projects and support services that meet growing demand from both buyers and renters. Ready-to-move, furnished units and serviced apartments could be particularly attractive to those seeking immediate occupancy, while flexible payment plans could bring new demographics into the fold.

Integrated services are a must: All projects in the area are now required to offer a mix of tourism, hospitality, commercial, and public services to ensure service availability and strengthen tourist appeal, the government source said.

A major marketing push is coming next month: The Real Estate Development Chamber is set to kick off a 60-day marketing blitz next month, the chamber’s executive director, Osama Saad El Din, tells. The marketing campaign will be the largest campaign to date covering projects across the so-called “new North Coast” and the entire Ras El Hekma area, targeting foreign and Arab tourists alike with fresh marketing ideas and offerings tailored to their tastes, he notes.

We’ll have more on Ras El Hekma throughout this limited-run series. Stay tuned.