In the presence of the Prime Minister, Egypt signs with Emaar and City Stars contracts for the largest tourism project on the Red Sea coast, with investments worth 900 billion EGP.
Yesterday evening, at the New Administrative Capital, Prime Minister Dr. Mostafa Madbouly attended the signing ceremony of contracts for the largest integrated tourism and residential project on Egypt’s Red Sea coast, between Emaar Misr, City Stars, and the Egyptian government, launching the Marassi Red Sea project with massive investments estimated at 900 billion EGP (around 20 billion USD).
The signing was attended by senior officials, including Eng. Sherif El-Sherbiny, Minister of Housing, Utilities and Urban Communities, Eng. Hassan El-Khatib, Minister of Investment and Foreign Trade, and Gen. Amir Sayed Ahmed, Presidential Advisor for Urban Planning. The contracts were signed by Mr. Mohamed Alabbar, founder of Emaar Properties, and Eng. Hassan Al-Shorbajly, Vice Chairman of City Stars.
Project Details – Marassi Red Sea
The Marassi Red Sea project is being developed on an area of 2,426 feddans (around 10 million square meters), just 30 minutes away from Hurghada International Airport. The project features a vast seafront, navigable water canals, and world-class yacht marinas, further positioning Egypt as a premier global tourism and investment hub.
The development will include 12 luxury hotels comprising thousands of rooms, alongside premium residential and holiday units, and commercial districts with more than 500 shops and restaurants. It will also house schools, hospitals, medical centers, and world-class entertainment and sports facilities.
Economic Impact and Job Creation
The project is expected to generate between 150,000 and 170,000 direct and indirect job opportunities during the construction and operational phases, in addition to approximately 25,000 permanent jobs once fully completed. It will also support several vital sectors, including Hurghada Airport, Safaga Port, as well as agriculture and logistics activities in the region.
The government emphasized that this project represents a transformational milestone for the Red Sea region, placing it firmly on the global tourism map and positioning it as a competitor to world-famous destinations such as the Caribbean and the Maldives.
Strategic Investments
According to the official statement, the project stems from a trilateral Egyptian–Emirati–Saudi partnership, valued at approximately 20 billion USD, to be developed in several phases. The first phase is scheduled for delivery by 2030, with subsequent phases extending through 2038.
The Marassi Red Sea project builds upon the remarkable success of Marassi North Coast, developed by Emaar Misr in recent years, which has become one of the Mediterranean’s most iconic destinations, attracting millions of visitors from around the world.
This ambitious development stands as a major strategic step in reinforcing Egypt’s position on the global tourism map, drawing greater foreign investment, and creating substantial job opportunities for the youth, all in line with the nation’s vision for sustainable development and economic growth.
Does Egypt Sell Its Land to the UAE and Saudi Arabia?
Egypt does not sell its land in such projects. Instead, it grants usufruct rights (investment partnership agreements) to developers like Emaar Misr or City Stars.
- Ownership: Land remains the property of the Egyptian state.
- Usufruct rights: Investors obtain the right to develop and operate the land for a defined period (sometimes spanning decades), in exchange for fees and financial returns to the state.
- Revenue sharing: The state receives a share of revenues (sales, rentals, operations) in addition to the usufruct fees.
Why adopt this model?
- Attract massive investments – such as the 20 billion USD Marassi Red Sea project.
- Job creation – projects like this generate 150,000–170,000 job opportunities.
- Regional development – such projects deliver airports, marinas, logistics hubs, and infrastructure.
- Boost state revenues – through direct returns, tourism, taxation, and improved balance of payments.
Sale vs. Usufruct
- Sale = Transfer of land ownership to foreign investors → This does not happen.
- Usufruct = Limited-time development and use rights, with payments → This is the model followed in most tourism and investment projects.
In the Case of Marassi Red Sea
- Outcome = A world-class tourism project that raises the value of the region, while the state benefits from usufruct fees, revenue shares, job creation, and infrastructure development.
- Land = Remains property of the Egyptian state.
- Deal = A trilateral Egyptian–Emirati–Saudi partnership over 2,400–2,426 feddans under usufruct.
- Developers = Emaar Misr + City Stars (or their affiliates).
Sources
