Egypt's $21bn "South Med" Project Aims To Revolutionize North Coast Tourism

Egypt has unveiled the "South Med" project, a significant EGP1tn ($21bn) investment aimed transforming the North Coast into a top global tourist. This initiative was announced during a press conference at the New Administrative Capital, attended by key government and private sector figures.

The "South Med" project is a joint venture between the Egyptian government and Talaat Moustafa Group (TMG). Prime Minister Madbouly highlighted its alignment with Egypt's Vision 2030 and National Strategic Plan. He noted that this project, along with others in New Alamein and Ras Al Hekma, aims to attract millions of tourists and create numerous job opportunities.

Image Courtesy: TMG

Economic Impact

Minister of Housing, Utilities, and Urban Communities, Assem El-Gazzar, discussed the project's broader economic benefits. With projected sales of EGP1.6tn, "South Med" is expected to significantly boost Egypt's GDP. This initiative is part of the government's strategy to integrate private sector investment into national development goals.

The residential sector in Egypt has become increasingly attractive to investors. According to Knight Frank's Destination Egypt report, the sector's current value of sales is about $18bn and is expected to reach $30bn by 2028. The first quarter of this year alone saw residential projects worth $1.3bn delivered.

A Magnet for GCC Investments

Since 2021, GCC countries have invested over $115bn in Egypt's real estate market. The UAE leads with $75bn, followed by Saudi Arabia's $30bn. GCC nationals are particularly interested in Egypt's residential properties, often investing around $1.1m per property on average.

Faisal Durrani from Knight Frank noted that 68% of GCC investors favour the residential sector. Branded residences and retail spaces attract 30% and 29% of respondents, respectively. Greater Cairo remains a top destination for residential property seekers, followed by the North Coast and Sharm El Sheikh.

Development and Features

The "South Med" project spans 23 million square meters on the Southern Mediterranean at Kilo 165 on the Alexandria-Matrouh Road. It offers easy access to Alamein International Airport, just an 18-minute drive away. This strategic location is expected to draw high-spending tourists from Europe, the UK, and GCC countries.

Hisham Talaat Moustafa, CEO of TMG, emphasised the project's significance as a public-private partnership. He highlighted its prime location near Alexandria and its luxury amenities designed to attract affluent tourists.

Record-Breaking Sales

The launch of "South Med" has generated significant interest in both Egyptian and neighbouring real estate markets. Within the first 12 hours of reservations opening, the project achieved record-breaking sales of EGP60bn ($1.25bn), setting a new benchmark for real estate and tourism projects in Egypt.

With approximately 8,000 homes under construction across 15 projects along Egypt's Mediterranean coastline, many near Alamein International Airport, "South Med" aims to elevate the region's status as a premier tourist and investment destination.

This ambitious project represents a critical component of Egypt's strategy to enhance its tourism sector while integrating private sector investments into national development plans.