Egypt has successfully planned 37 new fourth-generation economic cities, including the New Administrative Capital, New Alamein, New Mansoura, New October, New Ismailia, “Salam Nasr” east of Port Said, along with new Upper Egypt cities and others. Why has Egypt spent billions of dollars on these cities despite other priorities such as budget deficits and external debt repayment? What benefits does Egypt gain from these cities? And what is the targeted foreign investment volume for these cities?

Economic Cities are integrated cities with multiple activities, funded, developed, and operated through cooperation between the private sector and government, providing innovative and smart solutions and investment opportunities across all sectors—industrial, productive, service, residential, and recreational—with the aim of increasing investment, creating jobs, employment, and effective management.

Importance of the New Economic Cities

The new economic cities in Egypt are called “fourth-generation cities,” characterized by reliable mobility (connection with other cities – support for public transport), adaptation to climate changes through increased green areas and public spaces, and utilization of new and renewable energy resources, especially solar energy.

Egypt ranked ninth globally and first in Africa in the list of countries receiving investments worldwide, with net investment inflows amounting to $46.1 billion in fiscal year 2023/2024; this is thanks to Egypt’s strategic plans for infrastructure development and the establishment of new economic cities, according to Hossam Heba, CEO of the General Authority for Investment and Free Zones.

The Administrative Capital: Smart Government and Modern Life

At the forefront of Egypt’s economic cities is the New Administrative Capital, currently the seat of government, covering an area of 170,000 feddans, with assets valued at 300 billion Egyptian pounds ($6.2 billion) by the end of 2023, targeting a population of 6.5 million people and providing two million job opportunities, according to Egypt’s General Information Authority.

The cost of the first phase, covering 40,000 feddans, reached $45 billion, according to the General Information Authority, and the second phase, also 40,000 feddans, cost about 240 billion Egyptian pounds ($4.8 billion). The New Administrative Capital Company aims to inject investments worth 60 billion Egyptian pounds ($1.2 billion) into utilities in the capital during 2025, according to Khaled Abbas, the company’s managing director.

The New Administrative Capital includes smart government headquarters, multi-level residential areas for all social segments including social housing, government headquarters, a global medical city, a sports city, a smart village, international conference halls, a massive exhibition city, service and educational areas, financial and business districts, civilized roads 120 meters wide, and a green axis covering 7,200 feddans with an area of 300 square kilometers.

New Alamein… Egypt’s Gateway to Africa

New Alamein city lies within the administrative boundaries of Marsa Matrouh Governorate, stretching 48 kilometers along the international road (Alexandria – Matrouh). The city’s borders start from Wadi El Natrun road to Dabaa, covering 50,000 feddans, extending more than 60 kilometers south of the coastal strip. The city is planned to accommodate more than 3 million people.

The city’s main features include 8 separate platforms overlooking the sea, with towers on each platform reaching 35 meters high. The towers consist of 3 commercial and administrative floors and a basement garage next to residential units, as well as a world-class medical center covering 44 feddans.

Egypt’s investments in establishing the city reached 350 billion Egyptian pounds ($7.2 billion). The investment volume for the last fiscal year in New Alamein was 50 billion Egyptian pounds ($1 billion), according to engineer Ahmed Ibrahim, head of the New Alamein Authority and supervisor of North Coast cities.

Egypt aims to attract 8 million visitors to New Alamein by 2025, with expectations that 60% of these visits will be local, 30% from Arab countries, and 10% from other countries, according to data from the Egypt Real Estate Platform.

Mohamed El-Sayed, an urban planning expert, told Al-Nahar that Egypt has spent billions of pounds over the past decade on infrastructure to establish economic cities that will attract foreign investments. Recently, many global factories, whether technological or chemical, have opened branches in Egypt. Confidence in local products has increased because Egypt managed to provide the necessary logistics services for these various industries, which was impossible before.

He added that Egypt aims through the new economic cities to support the entire Egyptian economy, starting from attracting investments in all sectors, providing trained labor, increasing local content and exporting it. Egypt today does not only export locally assembled products but also aims to export Egyptian real estate abroad, as seen in New Alamein, which has attracted global attention, especially in the Arab Gulf.