Denis Opudo
The proposed mega-city and business zone in Peninsula (Southern Sinai) will require the commitment of 1,000 square Km piece of land by the Egyptian government. The joint venture between Egypt and Saudi Arabia is projected to cost $10billion. During the Riyadh International Investment Conference, the NEOM investment plan was postulated to occupy 26,500 square Km parcels of land. The major focus of mega-city project entails industrialization and tourism. Key areas constituted of advanced manufacturing, biotechnology, tourism, water, food, and energy. Riyadh’s report stipulated that part of the new joint investment will aid the development of NEOM, especially on the Egyptian side.
In contrast, Saudi Arabia anticipates building seven new cities alongside tourism projects while Egypt will only develop existing cities. The two priory cities in Egypt under consideration are Hurghada and Sharm El Sheikh. Besides, Egypt and Saudi Arabia, the planned joint investment is also geared to attract European investors. The strategy will allow European companies to invest in the Red-Sea region during the winter seasons. The move follows a series of negotiations by Riyadh I lobbying European cruise companies to build (Yacht Marinas).
As part of the initiative, four small cities and 50 standard resorts will be constructed to develop tourism sector. These plans are line with Public Investment Fund and the latest August 2017 declaration.
The project is expected to be launched in 2019 and completed by 2022 for the first phase. This Red Sea investment will incorporate 50 islands where natural reserves and heritage sites are aimed for improvement. According to Stephen Kalin, the government of Saudi Arabia has requested local construction companies to consider building at least 5 places in NEOM. Japan’s Softbank has shown interest to invest to take part in the construction although business investment has not kicked off.
In addition to joint investment, the two countries have also signed the Environmental protocol to help in Red Sea preservation.
