• Talaat Moustafa Group unveils a $27 billion smart city east of Cairo
• The project will include over 160 towers and vast green public spaces
• It reflects Egypt’s broader wave of large-scale urban developments

Egypt’s real estate giant Talaat Moustafa Group (TMG) announced on April 18 plans to build a new city called “The Spine” east of Cairo, with an investment of 1,400 billion Egyptian pounds ($27 billion).

CEO Hisham Talaat Moustafa said during a press conference that the project will cover about 2.4 square kilometers.

The development is designed as a fully integrated urban complex. It will include residential districts, commercial areas, office space, hotels, leisure facilities, retail centers, and extensive green public areas expected to cover more than 70% of the site. The project will feature more than 160 residential, office, and commercial towers.

TMG is developing the project in partnership with the National Bank of Egypt (NBE), which holds a stake in the project company. The company has an initial paid-in capital of 69 billion Egyptian pounds ($1.3 billion).

“The Spine” is expected to receive special investment zone status, similar to Madinaty, another flagship TMG project. This designation would provide a favorable regulatory and tax framework to attract investors and capital.

According to Moustafa, the project could generate about 818 billion Egyptian pounds in tax revenue for the government through corporate taxes, VAT, property taxes, and other contributions tied to economic activity. TMG also expects the project to create more than 55,000 direct jobs and over 100,000 indirect jobs.

A new phase in Egypt’s mega urban development strategy

The project reflects a broader trend in Egypt’s urban development strategy. In recent years, the country has seen rising investment in new cities, special economic zones, tourism hubs, and logistics corridors, supported by strong inflows of foreign capital, particularly from Gulf countries.

One of the most prominent examples is Ras El Hekma on the Mediterranean coast, considered one of the largest real estate developments in the country’s history.

Located in the Matrouh governorate, about 350 kilometers north of Cairo, the project spans 170 square kilometers and is expected to accommodate up to 2 million residents. It includes a large tourism complex, a free zone, port and airport infrastructure, and residential and commercial districts built to international standards. Ras El Hekma is backed by a major investment agreement signed in February 2024 between Egypt and the United Arab Emirates through Abu Dhabi’s sovereign wealth fund, ADQ.

Alongside this, Qatari Diar, the real estate arm of Qatar’s sovereign wealth fund, announced in November 2025 plans to invest about $30 billion in a high-end tourism complex in Alam Al-Roum, also in Matrouh. The project, developed with the New Urban Communities Authority (NUCA), will cover about 20.2 square kilometers and aims to transform a largely undeveloped area into a year-round tourism and investment destination.

Qatari Diar is expected to pay around $3.5 billion to acquire the land and invest an additional $26.2 billion to develop an integrated urban complex. The project will include residential areas, hotels with about 4,500 rooms, marinas, leisure facilities, golf courses, schools, universities, and various public infrastructure.

Espoir Olodo