Egypt unveiled on Sunday 7 September its latest mega tourism development: a new Red Sea city resort project worth EGP 900 billion (about USD 18 billion), launched through a partnership with Emirati and Saudi real estate giants Emaar Misr and City Stars.
Prime Minister Mostafa Madbouly oversaw the signing ceremony on Sunday, alongside top government officials, including Housing Minister Sherif El Sherbiny, Investment and Foreign Trade Minister Hassan El Khatib, and Presidential Adviser for Urban Planning General Amir Sayed Ahmed.
The agreement was signed by Mohamed Alabbar, founder of Dubai based Emaar Properties, and Hassan El Sharbatly, Vice Chairman of City Stars Group. Officials confirmed that the deal followed a series of state led settlement procedures that extended land use rights and formalized Emaar’s role as master developer.
What is Marassi Red Sea?
The project covers 2,426 feddans, or about 10.2 square kilometers, of prime coastal land only 30 minutes from Hurghada International Airport. Once completed, which is targeted within four years, it will include 12 luxury hotels with both rooms and serviced residences, a world class marina with one main harbour and two boutique marinas, and a 400 meter waterfront pier. The resort will also feature Maldives inspired floating cabins, private beaches, infinity shores, more than 500 retail and dining outlets, schools, hospitals, and wellness centers.
Marassi Red Sea will include Marassi Wonders, a multi use district featuring an international conference center, commercial zone, aqua park, sports facilities, and lifestyle clubs. Sustainability is also at the heart of the development, with extensive landscaped green spaces and a large scale afforestation program designed to promote biodiversity.
Officials estimate the development will create between 150,000 and 170,000 direct and indirect jobs during construction and around 25,000 permanent roles once operational. It is also expected to boost surrounding sectors including Hurghada Airport, Safaga Port, agriculture, logistics, and retail.
Why it matters
The Red Sea governorate is already one of Egypt’s most popular tourist destinations, but Marassi Red Sea is designed to transform it into a global luxury hub.
The government pointed to the precedent of Marassi North Coast, an earlier Emaar Misr project that drew four million visitors in just three months. By comparison, some European destinations attract fewer than three million tourists over an entire year.
By replicating this success on the Red Sea, the project aims to strengthen Egypt’s position as a year round tourism hub and diversify revenue streams in an economy still grappling with inflation, currency pressures, and Israel’s war on Gaza.
Part of a bigger picture
This is Egypt’s second massive tourism deal in less than two years. In February 2024, the government signed a USD 35 billion agreement with Abu Dhabi’s ADQ to redevelop the Ras El Hekma region on the Mediterranean into a new world class city. That project, covering more than 40,000 feddans, marked the country’s largest ever foreign direct investment.
Together, Ras El Hekma and Marassi Red Sea highlight Egypt’s push to attract large scale Gulf backed investments to its real estate and tourism sectors. Officials frame these projects as critical to achieving Egypt’s long term vision of becoming one of the world’s premier destinations for sustainable luxury tourism, while boosting foreign currency reserves and employment opportunities.
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