The GCC's rising investment interest in Egypt - statistics & facts
Egypt has become a prime destination for investment from Gulf Cooperation Council (GCC) countries, particularly the United Arab Emirates (UAE) and Saudi Arabia. With its large population, strategic location, and economic potential, Egypt offers a range of opportunities in real estate, tourism, and infrastructure. Notably, Egypt has the largest infrastructure investment gap in the MENA region, drawing significant attention from Gulf investors seeking to expand their presence and capitalize on the country’s growth opportunities while Egypt gains much-needed foreign capital.
Beyond Ras Al-Hekma, Gulf investors are showing interest in other coastal and urban developments like New Alamein and Ain Sokhna. These areas are becoming luxury property hubs, attracting both Egyptian elites and buyers from the Gulf.
GCC involvement also extends to infrastructure and other key sectors. The UAE has acquired major assets, including five Egyptian banks and companies like Abu Qir Fertilizers, MOPCO, and Alexandria Container and Cargo Handling. Emirati investors have also acquired a stake in Egypt’s digital economy by investing in the leading electronic payments company, Fawry, with a revenue of more than three billion Egyptian pounds in 2023. Additionally, they have expanded into the healthcare sector with investments in hospitals and laboratories, such as Al-Burj and Al-Mokhtabar.
GCC investments are reshaping Egypt’s real estate, tourism, and infrastructure sectors, providing a significant economic boost. While Gulf capital offers a lifeline for Egypt's struggling economy, there are worries that such investments deepen inequality, benefiting wealthier segments while overlooking broader needs like affordable housing and job creation. These developments also raise concerns about sustainability and the long-term impact on local communities and the environment.
Ras Al-Hekma and expanding property investment
A notable land deal is the 35 billion U.S. dollar investment led by the UAE’s sovereign wealth fund ADQ in Ras Al-Hekma on Egypt’s Mediterranean coast. This is the largest foreign direct investment in the country’s history. The project aims to develop the untouched region into a luxury resort city with residential, commercial, and tourism facilities, including two seaports and an international airport. Currently, approximately 174 weekly flights operate from GCC countries to Alexandria Airport, located about 35 kilometers from the area. Covering over 170 million square meters, this sizable investment signals the UAE's confidence in Egypt as a future hub for high-end real estate.Beyond Ras Al-Hekma, Gulf investors are showing interest in other coastal and urban developments like New Alamein and Ain Sokhna. These areas are becoming luxury property hubs, attracting both Egyptian elites and buyers from the Gulf.
Tourism and infrastructure
Residential property purchasing in touristic locations remains a central focus for Gulf investors, particularly in popular destinations such as Sharm El Sheikh, Hurghada, and Sahl Hasheesh along the Red Sea. Investments from the UAE are reshaping Egypt’s hospitality sector, introducing luxury resorts and five-star hotels targeting wealthy visitors from the GCC and beyond.GCC involvement also extends to infrastructure and other key sectors. The UAE has acquired major assets, including five Egyptian banks and companies like Abu Qir Fertilizers, MOPCO, and Alexandria Container and Cargo Handling. Emirati investors have also acquired a stake in Egypt’s digital economy by investing in the leading electronic payments company, Fawry, with a revenue of more than three billion Egyptian pounds in 2023. Additionally, they have expanded into the healthcare sector with investments in hospitals and laboratories, such as Al-Burj and Al-Mokhtabar.
Agricultural and carbon credit investments
Driven by concerns over food security and sustainability, Gulf investors have acquired large areas of agricultural land in Egypt and across Africa. The value of agricultural imports to the GCC exceeded 26 billion U.S. dollars in 2020. Companies like UAE-based Blue Carbon are purchasing forested land in countries like Zimbabwe and Liberia for carbon credit sales, although these deals have been criticized as greenwashing. The United Arab Emirates is one of the countries with the highest CO₂ emissions per capita globally.Controversies and criticism
Despite the economic benefits, these investments have raised concerns. In Ras Al-Hekma, for instance, Gulf investors obtained prime coastal land at a relatively low price – about 4,300 Egyptian pounds (140 U.S. dollars) per square meter. Critics argue that this undervalues the land, favoring foreign investors over local developers. Additionally, environmental and social impacts, including the displacement of around 25,000 Bedouins, have sparked criticism.GCC investments are reshaping Egypt’s real estate, tourism, and infrastructure sectors, providing a significant economic boost. While Gulf capital offers a lifeline for Egypt's struggling economy, there are worries that such investments deepen inequality, benefiting wealthier segments while overlooking broader needs like affordable housing and job creation. These developments also raise concerns about sustainability and the long-term impact on local communities and the environment.
