Egypt's Prime Minister Mostafa Madbouly has announced the launch of a major new real estate development project named South Med on the country's Mediterranean coast, in partnership between the government and the private sector.
The project, developed by Egyptian real estate giant Talaat Moustafa Group Holding, is expected to attract investments worth 1 trillion Egyptian pounds ($20.7 billion) and generate sales of 1.6 trillion pounds ($33 billion), the company's CEO Hisham Talaat said during a joint press conference with Mr Madbouly.
In just the first few hours after reservations opened, the project achieved actual sales of 60 billion pounds, “an unprecedented figure in Egypt's real estate and tourism sectors”, according to Mr Talaat.
He emphasised that the project comes as a model of partnership between the state and the private sector in real estate, in line with the government's policy of encouraging the private sector to play a larger role in developing the national economy.
He said that “local investment is capable of generating projects that match global ones to create real added value for Egypt and its economy”.
The project is also expected to create 1.6 million direct job opportunities through construction and other related industries.
During his speech, Mr Madbouly emphasised the government's commitment to developing the north coast as a focal point to maximise the tourism sector. The goal is to double the current number of tourists visiting Egypt by 2030, he said.
The prime minister highlighted that the north coast's moderate year-round climate and topography make it one of the most important areas capable of absorbing a large portion of Egypt's future population growth.
To encourage Egyptian youth to reside in the north coast region, the government is working to provide more job opportunities through implementing a large, integrated set of projects.
Mr Madbouly stressed that this project, along with others such as the New Alamein City and the Ras Al Hikma project in partnership with the UAE, will attract millions of foreign tourists from around the world, especially from the higher-spending segments from Europe and Arab countries.
He highlighted the job opportunities these projects will create for Egyptian youth, both directly and indirectly, encouraging them to settle permanently in the region.
