Egyptian Prime Minister Mostafa Madbouly recently announced a joint project with the United Arab Emirates (UAE) to develop the new Egyptian city of Ras Al Khaimah in the northwest coastal region of Egypt, about 350 kilometers northwest of Cairo, on the shores of the Mediterranean Sea.
More stories:
"I’m pleased and honored to be with you today and announce this major investment agreement, considered by all measures the largest direct foreign investment deal in Egypt's history," he said in the announcement on February 23. Egypt hopes the project will be able to keep the country afloat amid the severe economic crisis it is facing.
According to reports, the project involves an estimated investment of about $150 billion in Egypt, of which $35 billion will be transferred directly to the Egyptian government within two months, in several installments. According to a statement by Egyptian President Abdel Fattah el-Sisi, part of the sum was already been transferred to the Egyptian treasury a few days after the announcement of the project.
The total area proposed for tourism as part of the investment in the area is about 180 square kilometers, cleared for the construction of integrated tourism projects. According to reports, it is expected the project will attract over 8 million additional tourists to Egypt annually. Egypt is expected to receive 35% of the project's profits.
Alongside those praising the project and believing it will become a successful venture that reflects the great cooperation between Egypt and the UAE and is expected to significantly help Egypt's economy, there are those who oppose it for several reasons. It should be noted that concerns and opposition to the project began before its official announcement, when rumors about the project circulated in Egypt, forcing the government to disclose the details.
Some of the opponents of the project fear that Egypt is losing its state lands in an attempt to overcome its economic crisis. Madbouly noted that the project was a partnership with the UAE and didn’t include the sale of assets, and that Egypt will receive a percentage of the project's profits.
According to other claims by opponents of the deal, it poses a security threat to Egypt due to Ras Al-Khaimah’s geographical location and the introduction of foreign elements into the area. Another argument against the deal is that it isn’t made with the UAE, but rather with those allegedly standing behind the country - Israel. According to this claim, Israel is essentially buying Egyptian lands in the deal. Of course, this is no more than a conspiracy theory.
The UAE isn’t the only investor in the area. In November 2023, it was reported that another person who chose to invest in the new tourist city is none other than actor Robert De Niro, owner of the international Nobu chain of hotels and restaurants.
In a video released online, De Niro announced the expansion of his activity in Egypt together with his partners, with reports indicating that they’re expected to open two restaurants in the country by 2026, one in the city of Sheikh Zayed and the other in the new city of Ras Al-Khaimah. Although the announcement was made in November, the topic has made headlines in recent weeks due to the extensive discussion surrounding the deal.
The Ras Al-Khaimah area is essentially a peninsula in the Mediterranean Sea. It has always been beloved by wealthy Egyptians, who spend their summer there. According to reports, it also holds historical importance for the Egyptians, serving as the western gate to Egypt, a port for mooring ships, and a resting place for kings and presidents throughout history. According to estimates, 25,000 people indigenous to the area are living there today, with several thousand more working in agriculture and tourism.