It is one of the few undeveloped spots remaining on the Mediterranean coast. There are white sand beaches, a few olive groves and an ageing 1940s holiday home built by the deposed King Farouk. So far, there is nothing to suggest that, within 30 years, the tranquil Egyptian peninsula of Ras el-Hekma will host a major new city.
On 23 February, the Abu Dhabi sovereign wealth fund ADQ announced plans to develop Ras el-Hekma as part of a deal worth $35bn (£28bn) in investment and debt relief. According to the Egyptian government, the 170 sq km city will include a marina, an airport and capacity for 8 million tourists a year. It is the largest foreign direct investment deal in Egyptian history by some margin, with ADQ paying the government the equivalent of 7% of the UAE’s total GDP upfront, a year before it plans to break ground.
