Egypt intends to develop Ras Banas, a secluded peninsula on the southern Red Sea coast, to attract large-scale investment. Ras Banas spans 30 kilometres and is one of Egypt’s last few undeveloped coastline areas. The government seeks to draw in investments to help alleviate its protracted economic crisis, which has been marked by record inflation, growing debt, and currency depreciation over the last two years.
Earlier this year, Egypt sold rights to develop the Ras El Hekma Peninsula on its Mediterranean coast to a UAE sovereign fund for $24 billion, stoking interest in future Gulf investment deals. Sherif El-Sherbiny, the Housing Minister, has revealed that Ras Banas’ strategic plan is nearing completion and will soon be submitted to investors.
A source in the finance ministry highlighted Saudi Arabia’s probable interest in transforming its Egyptian Central Bank savings into direct investments in Ras Banas. The country has been in talks for months.
The Saudi Public Investment Fund also offered $5 billion in investments during a meeting with Egypt’s Prime Minister and Saudi Crown Prince Mohammed bin Salman. This statement caused a spike in Egypt’s government bond prices.
