Egypt plans to offer peninsula-based Berenice as one of five key coastal concessions by the Red Sea in its ongoing strategy to draw in potential investors, Senior Assistant to the Housing Minister, Abdel Khalek Ibrahim, told Asharq Business on 29 September.
Known for its pristine beaches, vibrant coral reefs, and rich historical sites, the Red Sea region is already a hotspot for tourism, making it a prime location for further investment. Berenice, an ancient Ptolemaic port near the Ras Banas peninsula, possesses crystal clear waters, a deep historical value, and a strategic location in the Red Sea.
In September, Prime Minister Mostafa Madbouly unveiled a plan to offer five strategic locations, including the Ras Banas peninsula, to private investors. These projects aim to leverage the region’s natural appeal for tourism and business development, replicating the scale of development anticipated in Ras El-Hikma on Egypt’s Mediterranean coast.
The Ras El-Hikma USD 35 billion (EGP 1.6 trillion) megadeal signed with the United Arab Emirates aims to turn the North Coast area into a functioning city with a thriving tourism and business sector. Now, the government is looking to replicate that investment along the Red Sea.
Egypt’s push to attract more private sector involvement aligns with its broader economic reform agenda, backed by a USD 8 billion (EGP 386 billion) expanded loan program from the International Monetary Fund (IMF). The IMF-supported initiative seeks to stabilize the economy, boost foreign investment, and promote sustainable growth.
Earlier this year, Egypt grappled with a foreign currency shortage that hampered its ability to import essential goods. However, the influx of investments, such as those from the Ras El-Hikma project, has provided a much-needed boost to the economy, helping it recover from the recent financial strain.
Recent economic data suggests that Egypt’s efforts are beginning to bear fruit. The S&P Purchasing Managers’ Index (PMI) climbed above 50 in August, the first in three years, signaling an improvement in business conditions for the first time in several months.
With the upcoming Red Sea concessions, Egypt hopes to continue this positive momentum and position itself as a regional investment hub, tapping into its rich coastal resources to spur further economic development.
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