Egypt unveiled plans for Al-Galala City, a new desert city along the Red Sea coast, on May 30, 2025, as part of its megaproject strategy to decongest Cairo and boost economic growth. Announced by President Abdel Fattah el-Sisi, the $15 billion development, 120 kilometers east of Cairo, aims to house 2 million people by 2035.
Spanning 19,000 acres, Al-Galala will feature residential zones, a university, a marina, and Africa’s largest cable car, connecting a mountaintop resort to coastal areas. The city, under construction since 2019, integrates with Egypt’s New Administrative Capital, targeting sustainable urban expansion.
Funded by the military and Gulf investors, Al-Galala is part of a $58 billion urban development push, creating 200,000 jobs. Sisi highlighted its tourism potential, with 5-star hotels and proximity to Ain Sokhna port, a Suez Canal hub.
The project includes renewable energy plants and desalination facilities to ensure self-sufficiency. Critics, however, question its affordability for average Egyptians, with apartments priced at $50,000, and cite environmental concerns over desert ecosystems. Supporters argue it will ease Cairo’s 22 million population strain, where 60% live in informal housing. Al-Galala’s first phase, housing 50,000, is set for 2026, positioning Egypt as a regional urban innovator, though public debt, at 95% of GDP, remains a challenge.