EGYPT is getting ready to construct a brand new megacity in land south of the Sinai Peninsula near Sharm el-Sheikh — and it is going to be paid for by Saudi Arabia.
A Saudi official confirmed this week that the huge new metropolis, often called NEOM, shall be greater than 1000sq km in complete.
The official instructed Reuters that town shall be constructed from a joint fund between Egypt, Saudi Arabia and Jordan value greater than $US10 billion ($AU12.7 billion).
The main points of the mission had been introduced throughout a go to to Cairo by Saudi Crown Prince Mohammed bin Salman, The Solar studies
Prince Mohammed beforehand introduced his plans for NEOM, at a global funding convention in Riyadh. Officers mentioned private and non-private funding within the space was ultimately anticipated to complete $US500 billion ($AU637 billion).
The megacity may have its personal judicial system separate from the strict Saudi Arabia — designed to draw worldwide buyers. Its industries will deal with power, water, biotechnology, meals, superior manufacturing and tourism.
It’s a part of a collection of massive strikes by the prince to focus the nation’s economic system on different industries except for oil exporting.
Saudi Arabia will even give money to assist develop the Egyptian aspect of NEOM.
The nation plans to construct seven cities and tourism tasks on the land, whereas Egypt will deal with creating the present resort cities of Sharm el-Sheikh and Hurghada, the Saudi official mentioned.
The dominion will even work with Egypt and Jordan to draw European cruise corporations to function within the Crimson Sea through the winter season.
Saudi Arabia is negotiating with seven cruise corporations and goals to construct yacht marinas there.
It is going to additionally arrange 50 resorts and 4 small cities as a part of a separate tourism initiative introduced final August and backed by the nation’s Public Funding Fund.
The Crimson Sea Mission, made up of some 50 islands, will provide a nature reserve, diving on coral reefs and heritage websites.
Authorities have mentioned it might start work in 2019 and full its first part by late 2022.
Riyadh and Cairo additionally signed an environmental protocol on Sunday aimed toward preserving the Crimson Sea’s coral reefs and stopping “visible air pollution”, the official mentioned.
The Saudi authorities has already requested native development corporations to construct 5 palaces in NEOM.
Some worldwide corporations, together with Japan’s Softbank, have mentioned they’re ready to speculate there.
This story initially appeared on The Solar and has been republished right here with permission.