The governments of Egypt and the UAE have signed a deal to develop the Ras El Hekma peninsula in a move to bring up to $35bn in FDI within two months.

The funding, which will come from Abu Dhabi Developmental Holding Company (ADQ), will go into developing a new urban, business and tourism centre in Egypt. The project will entail new residential districts, hotels and tourist resorts, as well as entertainment venues and public service buildings including hospitals, schools and universities.

Officials in Cairo hope the overall project will attract a minimum of $150bn in investment in the coming years. Egypt’s Prime Minister, Mostafa Madbouli, added that the planned city will include a large marina for tourist yachts and ships.

“We expect the new city to attract eight million tourists to Egypt upon completion,” he said.

Ras El Hekma lies around 200km west of Alexandria, Egypt’s second-largest city. The recent development marks the latest in a series of expansive urban area projects across the Middle East and North Africa (MENA) region. In Saudi Arabia, officials plan to build a new 26,500km² town called Neom or “The Line”.

Last year, in October, the kingdom announced the launch of its strategic investment arm, the Neom Investment Fund, to attract funding for the city’s 14 priority sectors. Upon completion, the Saudi Government hopes to turn Neom into a financial and global trade hub for businesses, competing with the likes of the country’s capital, Riyadh, and its second city, Jeddah.

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In parallel, Egypt is building a new capital just outside Cairo, which will host the country’s ministries.