Egypt has inked one of its most ambitious real estate and tourism development deals, partnering with Emaar Misr and City Stars Group to launch the Marassi Red Sea mega-project. Valued at EGP 900 billion (approx. $18 billion), the agreement was signed in Cairo in the presence of Prime Minister Mostafa Madbouly, marking a pivotal step in Egypt’s strategy to position the Red Sea as a luxury global destination.
The contracts were signed by Mohamed Alabbar, founder of Dubai-based Emaar Properties, and Hassan El-Sharbatly, Vice Chairman of City Stars Group, alongside top Egyptian ministers and presidential advisers. Officials confirmed that the deal was finalized after extensive state-led settlement procedures, which formalized Emaar’s role as master developer.
The project follows the success of Marassi North Coast, which redefined Egypt’s Mediterranean tourism landscape. According to government data, the North Coast destination attracted over 4 million visitors in just three months, surpassing annual tourist arrivals to some European resorts. Policymakers are now betting on Marassi Red Sea to replicate — and potentially exceed — that impact.
“This project reflects Egypt’s broader pivot to luxury, sustainable tourism,” said Dr. Omar El-Haddad, a Cairo-based urban development expert. “By anchoring the Red Sea with a global-caliber destination, Egypt is diversifying away from traditional Nile Valley and Cairo-centric investments.”
Spanning 2,426 feddans along the coast just 30 minutes from Hurghada International Airport, Marassi Red Sea will combine high-end hospitality, residential, and entertainment features, including:
- 12 luxury hotels and serviced residences
- A world-class marina, two boutique marinas, and a 400-metre waterfront pier
- Private beaches and Maldives-inspired floating cabins
- Over 500 retail and dining outlets, plus schools, hospitals, and wellness centers
- Marassi Wonders District with an international conference center, commercial hubs, aqua park, and sports facilities
- Vast landscaped gardens and large-scale afforestation programs promoting sustainability and biodiversity
The project is expected to generate 150,000–170,000 jobs during construction and sustain 25,000 permanent jobs once operational.
Officials stressed that the development aligns with Egypt Vision 2030, boosting tourism, real estate, logistics, and agriculture in the Red Sea region. The project is also expected to stimulate activity at Hurghada Airport and Safaga Port, strengthening Egypt’s connectivity to global tourism flows.
“This is not just a resort — it is a new urban ecosystem,” noted Lamia Kamel, a Cairo-based tourism analyst. “Marassi Red Sea will compete with destinations such as Dubai’s Palm Jumeirah and Saudi Arabia’s NEOM, making Egypt a contender in the luxury Red Sea tourism race.”
This is Egypt’s second mega-tourism agreement in 18 months. In February 2024, Cairo secured a $35 billion deal with the UAE’s ADQ to transform Ras El-Hekma on the North Coast into a Mediterranean hub. Together, Ras El-Hekma and Marassi Red Sea mark a historic wave of foreign direct investment, signaling global confidence in Egypt’s real estate and tourism sectors despite macroeconomic challenges.
Sources close to the matter told The Middle East Observer that Emaar is already in advanced talks with leading Gulf hospitality groups to co-brand some of the hotels within Marassi Red Sea, hinting at further regional partnerships to follow.
