
Egypt has finalized one of its largest ever investment agreements, a $18.5 billion venture with UAE’s Emaar Properties and Saudi Arabia’s City Stars Group to develop a vast integrated tourism complex along the Red Sea coast. The deal was signed recently at the Egyptian Cabinet headquarters in the New Administrative Capital in the presence of Prime Minister Mostafa Madbouly and senior ministers.
The project, named Marassi Red Sea, covers an expansive 10 million square meters (approximately 2,426 feddans or 2,518 acres) and is expected to generate up to 170,000 jobs during construction and operation, including 25,000 permanent positions. Hassan Sharbatly, Vice Chairman of City Stars, described the development as “unique in its planning and services.”
Prime Minister Madbouly emphasized the government’s continued focus on tourism and urban development, highlighting that tourism and urban expansion remain top priorities. The project will feature a world-class yacht marina and confirm the government’s stake in parts of the built-up areas.
Emaar Misr for Development, the Egyptian subsidiary of the UAE-based Emaar Properties, will lead the project through its affiliate Sky Tower for Real Estate Development, in partnership with Golden Coast for Hotels and Resorts, linked to City Stars. Neither company disclosed specific shareholding details or completion timelines. Emaar Properties is a major investor in Egypt with projects including Uptown Cairo and the Marassi resort on the Mediterranean, and plans to inject an additional $1 billion into new investments in Egypt in 2025.
The Marassi Red Sea project will include 12 luxury hotels, marinas, private beaches, floating cabanas inspired by the Maldives, retail outlets, schools, healthcare centers, and leisure facilities such as water parks, a convention center, and sports complexes. Large-scale reforestation efforts will also be incorporated to enhance sustainability.
This massive investment aligns with Egypt’s Vision 2030 agenda, aiming to transform the country into a premier global tourism and investment hub while increasing annual tourist arrivals to 30 million by 2028. The government plans to attract $42 billion in foreign direct investment in the current fiscal year, with tourism playing a major role in economic diversification and job creation.
Marassi Red Sea is seen as a flagship project to expand Egypt’s footprint in luxury tourism and contribute billions in long-term economic benefits. It positions the Red Sea region as a year-round destination, complementing other major Gulf-backed developments including Abu Dhabi’s $35 billion investment in the Ras El Hekma coastal project on the Mediterranean.
The announcement comes amid record growth in Egypt’s tourism sector, which contributed 1.4 trillion Egyptian pounds (about 8.5% of GDP) in 2024 and supported 2.7 million jobs. The sector’s contribution is expected to increase further in 2025 with the government’s ambitious visitor targets.