Egypt launches new $21 billion joint venture to build SouthMED on the North Coast

The new project was announced today during the press conference held at the Egyptian cabinet headquarters in the New Administrative Capital.

SouthMED City will be fully equipped with a marina, a golf course, crystal Lagoons, and other luxurious facilities and services. 

During the conference, Prime Minister Mostafa Madbouly underscored massive projects underway on the north coast such as New Alamein City, Ras El-Hekma and now SouthMED for boosting tourism and magnifying the country's economic potential.

Madbouly said these projects will double the number of tourists to the country by 2030.

"We are keen to make the North Coast the focal point of attention of various state agencies to enlarge the tourism sector and allow for a large number of hotel rooms in the region."

For his part, Hisham Talaat Moustafa, the CEO of TMG, said the project is expected to achieve the highest revenue recorded for a tourist real estate project in Egypt at about EGP 1.6 trillion ($32 billion).

"SouthMED City will create 1.6 million direct and indirect job opportunities in construction and construction-related industries and is expected to increase the country's GDP by EGP 2.4 trillion," added Talaat Mostafa.

"The proceeds from sovereign taxes on the project to the state budget will increase by EGP 283 billion ($56 million)," he said.

He affirmed that SouthMED will attract a massive amount of foreign direct investments (FDI) as an international tourist attraction, injecting much-needed foreign currency into the economy.

SouthMED has achieved EGP 60 billion in the first 24 hours of the public offering.

The deal to build the SouthMED mega project in the North is the second such mega project deal signed in 2024 by Egypt to transform the region.

In February, Egypt initiated Ras El-Hekma, a historic mega project initiated on the North Coast, which would pump $35 billion of FDI into the economy in its initial phases.