A new city is rising in Egypt. But is it what the country needs? | CNN (2024)

A new city is rising in Egypt. But is it what the country needs? | CNN (1)

Egypt is building a new city, known as the "New Administrative Capital," 30 miles east of Cairo. Construction on the 270-square-mile area began in 2016, and once complete it could hold as many as 6.5 million residents. The government says its goal is to bring relief to overcrowded Cairo, but critics believe it is diverting resources from other needs.

A new city is rising in Egypt. But is it what the country needs? | CNN (2)

The city is home to the tallest building in Africa, the "Iconic Tower," by architects Dar al-Handasah Shair & Partners, which was completed in 2023. Located in the new city's central business district, it stands at an impressive 385 meters (1,263 feet).

A new city is rising in Egypt. But is it what the country needs? | CNN (3)

The business and finance district is currently under construction. Developers hope it will become a center for African and Middle Eastern trade, with businesses from the wider region moving their global headquarters there.

Government ministries, such as the Ministry of Justice (pictured), have relocated to the new city, with around 48,000 employees working there, according to Khaled Abbas, chairman of the Administrative Capital for Urban Development (ACUD), the company overseeing the project.

A new city is rising in Egypt. But is it what the country needs? | CNN (5)

The Egyptian parliament will begin directing its meetings from the new city this month, according to Abbas. This photo shows the new headquarters for the Senate, the upper house of the Egyptian Parliament. The building's main hall can accommodate 406 members, as well as meeting rooms and an IT center, emergency clinic, restaurant and car park.

A new city is rising in Egypt. But is it what the country needs? | CNN (6)

The city also boasts the largest cathedral in the Middle East. "The Cathedral of Nativity" covers an area of 15 acres and its main dome is 40 meters wide and 36 meters high.

A new city is rising in Egypt. But is it what the country needs? | CNN (7)

A restored ancient Egyptian obelisk of King Ramses II is on display outside the new capital library building (right) and the opera house (left).

A new city is rising in Egypt. But is it what the country needs? | CNN (8)

The city promises more green space than Cairo and landscaping has begun on the so-called "Green River," a series of parks and waterways amidst the city's recreational zones.

Egypt's New Administrative Capital: In pictures

CNN

In an expanse of desert 30 miles east of Cairo, Egypt, a new city is rising. Already boasting the tallest tower in Africa and the biggest cathedral in the Middle East, the city is one of a series of President Abdel Fattah el-Sisi’s grand megaprojects intended to develop the country’s economy.

Construction of the “New Administrative Capital” began in 2016, and is being completed in phases. According to Khaled Abbas, chairman of the Administrative Capital for Urban Development (ACUD), the company overseeing the project, phase one is almost complete and phase two is expected to begin in the last quarter of this year.

Slowly but surely, life is beginning to trickle into the city. More than 1,500 families have moved in, according to Abbas, and by the end of 2024, he expects this number to have risen to 10,000.

With government ministries relocating to the new city, there are already around 48,000 government employees working there, he says, many of whom commute from eastern Cairo via an electric train that started operating last year. In March, as parliament starts directing its meetings from the city and several banks and businesses move their headquarters there, more people are expected to move in.

Eventually, “the whole country will be managed from within the new capital,” Abbas adds.

A new city is rising in Egypt. But is it what the country needs? | CNN (9)

The Egyptian Parliament will start directing its meetings from the new city in March. Pictured here is the interior of the House of Representatives.

He says phase one cost around 500 billion Egyptian pounds ($10.6 billion). The project has previously been estimated to cost around $58 billion in total, with the government saying it will be funded by ACUD and the proceeds of land sales, although some reports suggest it is costing the state billions.

Critics are concerned about the expense as the country goes through a period of economic downturn and deals with increased pressures from the war in Gaza. Egypt’s economy is being boosted by international funding, including from the World Bank, which announced Monday that it would provide Egypt with more than $6 billion over three years. Earlier this month, the International Monetary Fund said it would increase its current loan program for Egypt from $3 billion to $8 billion, contingent on economic reforms, including a “new framework to slow down infrastructure spending,” to help reduce inflation and preserve debt sustainability.

ACUD, which is 51% owned by the military and 49% by the housing ministry, told CNN that the development of the city would not be affected by the IMF announcement. In February, ACUD announced that Dar, a global architecture and engineering firm involved in phase one of the city, had been awarded the contract to create a detailed master plan for phases two, three and four of the capital. Abbas says that the second phase is expected to cost around 300 billion Egyptian pounds ($6.4 billion).

Continental hub

The New Administrative Capital is centered around a financial district where some international banks and businesses will have their global headquarters. Last year, Afreximbank announced it would be acquiring land in the city for an African Trade Centre, housing its global headquarters, a conference center, hotel and an innovation hub, which it has described collectively as a “one-stop-shop business complex” for intra-African trade. A consortium of unnamed companies from the United Arab Emirates and South Africa announced that they would be forming a financial hub in the capital.

Abbas believes that the city’s modern infrastructure will attract businesses. An artificial intelligence system will optimize the use of electricity, gas and water, as well as waste management, he says. Optical fiber infrastructure and the deployment of 5G will help connectivity, and there will be high-tech security services, with thousands of surveillance cameras installed across the city that will also track traffic and alert congestion and accidents.

A new city is rising in Egypt. But is it what the country needs? | CNN (10)

National and international banks are moving their headquarters to the new city.

“All the big international companies are looking for smart cities and sustainability,” he says. “We are trying to facilitate all kinds of services to make doing business here easy.” He hopes that Egypt’s smart city design will become “a role model for other countries in Africa,” contributing to the wider region’s economic development.

Nicholas Simcik Arese, chair of history and theory at the Architectural Association, in London, who has done extensive field research in Cairo, says that it is possible that the new city will attract business, particularly “high-level bilateral partnerships” and foreign capital that could boost the economy. “However, the ultimate question when it comes to economic benefits for countries is to whom does it accrue, and almost certainly this will only accrue to a very, very small segment of the population,” he tells CNN.

He points to a history of Egyptian leaders building satellite cities close to Cairo as transformational projects, such as “6th of October” and “New Cairo,” established in 1979 and 2000 respectively. Today, these cities are almost entirely gated communities, catering to upper middle classes, and often with many vacancies, he says.

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Taking the pressure off Cairo

Some critics arguethat a key motivation behind the new cityis to allow the government to keep its distance from large protests, like those that happened in 2011 around Cairo’s Tahrir Square. Simcik Arese notes that urban planning of the new city would make mass marches “virtually impossible.”

The most cited argument behind the government’s decision to build a new capital is the need to accommodate Egypt’s growing population and to relieve congestion and pollution in Cairo, which has one of the highest population densities in the world. Twenty-two million people live in Greater Cairo – up to 50,000 per square mile.

Abbas says that the new city promises more green space. Landscaping has begun on a park, dubbed the “Green River,” that will cover an area twice the size of New York City’s Central Park, although there have been questions over how this will be irrigated considering the arid landscape and the country’s scarce water supplies.

A new city is rising in Egypt. But is it what the country needs? | CNN (11)

Cairo is densely populated with 50,000 residents per square mile.

Simcik Arese acknowledges Cairo is overcrowded, but he challenges whether the solution is building a new city. “The issue of a crowded Cairo is not just to do with uncontrollable population growth, but people’s ability to access decent livelihood where they’re from,” he says.

“There’s a lot of existing housing stock in Cairo that is perfectly workable, and if the government were to spend even a small fraction of that investment on helping people’s existing cities actually work, I think the question of overcrowdedness would go away very quickly.”

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Abbas says that Cairo’s old infrastructure has passed the point of being upgraded, and while he would not give direct numbers on the affordable housing that will be available, he insists that the new city will cater for all parts of society.

“The cost of living here is the same as in the old city, but with a difference that you’re living in a new city, a smart sustainable green city,” he says. “Our role is to give a quality of life to the people.”

A new city is rising in Egypt. But is it what the country needs? | CNN (2024)

FAQs

A new city is rising in Egypt. But is it what the country needs? | CNN? ›

The most cited argument behind the government's decision to build a new capital is the need to accommodate Egypt's growing population and to relieve congestion and pollution in Cairo, which has one of the highest population densities in the world.

What is the real reason Egypt is moving its capital? ›

The government stated that the undertaking of the project is to relieve congestion in Cairo. Cairo has a metropolitan population of nearly 20 million.

Is Egypt a developed or developing country and why? ›

Egypt is considered to be a regional power in North Africa, the Middle East and the Muslim world, and a middle power worldwide. It is a developing country having a diversified economy, which is the largest in Africa, the 38th-largest economy by nominal GDP and 127th by nominal GDP per capita.

How is Egypt as a country to live? ›

The Arab Republic of Egypt stands as a unique and historical destination in the Middle East and North Africa, where ancient civilizations and rich traditions intersect with modern life. The country boasts cultural and historical diversity, offering a unique environment for residents and visitors alike.

Why is Cairo growing? ›

Improvements in transportation fostered the growth of suburban Heliopolis and Al-Maʿādī; flood control permitted riverfront development; and bridges encouraged settlement of islands (Al-Rawḍah and Al-Zamālik) and of the west bank.

Why do we need to build new cities in Egypt? ›

The most cited argument behind the government's decision to build a new capital is the need to accommodate Egypt's growing population and to relieve congestion and pollution in Cairo, which has one of the highest population densities in the world.

Why do people want to move to Egypt? ›

The sunny country, known all over the world for its ancient monuments and modern attractions, can boast of many advantages, such as a low cost of living, a wide range of opportunities in the labour market, a friendly population and, of course, an ideal price-quality ratio of residential units.

Is Egypt a rich or a poor country? ›

Economy of Egypt
Trade organisationsAfCFTA, African Union, COMESA, CAEU, WTO, BRICS
Country groupDeveloping/emerging Lower-middle income economy
Statistics
Population107,785,000 (2024 est.)
GDPUS$347.594 billion (nominal, 2024 est.) US$1.899 trillion (PPP, 2024 est.)
35 more rows

What is Egypt's main source of income? ›

Egypt's economy relies mainly on agriculture, media, petroleum imports, natural gas, and tourism.

Are Egyptians Arabs or Africans? ›

Modern Egyptians are only 17% Arab according to their DNA, with the rest of modern Egyptians' genetic makeup being 68% North African, 4% Jewish, 3% East African, 3% from Asia Minor and another 3% South European.

Is it worth living in Egypt? ›

Any expat living and working in Egypt should find it easy to live a comfortable lifestyle in a country with a very low cost of living. However, with inflation sky-high, and the cost of living in Egypt going up day-by-day, you may start to find it challenging to make the most of your budget.

Is Egypt friendly to us? ›

Egypt is a valued U.S. partner in counterterrorism, anti-trafficking, and regional security operations, which advance both U.S. and Egyptian security. The decades-long defense partnership is a pillar for regional stability.

Does Egypt have a good quality of life? ›

Egypt scores 79.7% on Quality of Life when scored against the 'Income adjusted' benchmark.

Is Cairo rich or poor? ›

With a total of 289 slums in Cairo alone, the capital of Egypt has the highest poverty rate next to Alexandria and Port Said.

What is the main problem in Cairo? ›

Social problems, such as lack of safety, illiteracy, and crime, have appeared in many parts of this mega-city, affecting both rich and poor areas. It has become evident, during recent decades, that government institutions are not able to cope properly with the ever-increasing rate of growth of Cairo and to manage it.

Why is Egypt growing so fast? ›

This increase will occur for two reasons: fertility rates are still high in many parts of Egypt, and momentum will cause the population to continue to increase even after fertility rates reach replacement level.

Why did the capital of Kush keep moving further south away from Egypt? ›

It is believed that the Kush*tes moved their capital to Meroe in large part because of its distance from the antagonistic Egyptians in the north. Soon after the Egyptians sacked the old capital of Napata in 593 BCE, the capital was moved south to Meroe.

Why would a country move its capital? ›

The most compelling reason to move is also the most prosaic: there are often limits to the growth of cities. Jakarta is traffic-clogged, overcrowded and flood-prone—not to mention one of the fastest-sinking cities in the world.

What caused Egypt to change? ›

The continuous wars created huge expenses and weakened the economic power of the Pharaoh. Christianity began to spread through Egypt and brought the adoption of the alphabet replacing hieroglyphics and creating major changes in Egyptian culture. Many ancient practices such as mummification ended.

Is it true that Cairo is the capital of Egypt? ›

The country's current capital is Cairo, and this has been the case since 972. This makes Cairo Egypt's longest-running capital city, having retained this status for over 1,050 years under the rule of six dynasties followed by the British protectorate of Egypt and the Republic of Egypt.

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