Egypt is building a new megacity on the Red Sea

WHAT do you do when you have more money than you know what to do with? Build a massive new city, of course.

The new city is being built by the Red Sea. Picture: NEOM

EGYPT is preparing to build a new megacity in land south of the Sinai Peninsula close to Sharm el-Sheikh — and it will be paid for by Saudi Arabia.

A Saudi official confirmed this week that the vast new city, known as NEOM, will be more than 1000sq km in total.

The official told Reuters that the city will be built from a joint fund between Egypt, Saudi Arabia and Jordan worth more than $US10 billion ($AU12.7 billion).

The details of the project were announced during a visit to Cairo by Saudi Crown Prince Mohammed bin Salman, The Sun reports

Prince Mohammed previously announced his plans for NEOM, at an international investment conference in Riyadh. Officials said public and private investment in the area was eventually expected to total $US500 billion ($AU637 billion).

The new city is being built by the Red Sea. Picture: NEOM

Saudi Arabia's Crown Prince Mohammed bin Salman (R) gestures during a meeting with Britain's Prime Minister Theresa May (unseen) and other members of the British government and Saudi ministers and delegates at number 10 Downing Street, in central London, on March 7, 2018. British Prime Minister Theresa May will "raise deep concerns at the humanitarian situation" in war-torn Yemen with Saudi Crown Prince Mohammed bin Salman during his visit to Britain beginning Wednesday, according to her spokesman. / AFP PHOTO / POOL / Dan Kitwood

The megacity will have its own judicial system separate from the strict Saudi Arabia — designed to attract international investors. Its industries will focus on energy, water, biotechnology, food, advanced manufacturing and tourism.

It’s part of a series of big moves by the prince to focus the country’s economy on other industries aside from oil exporting.

Saudi Arabia will also give cash to help develop the Egyptian side of NEOM.

The country plans to build seven cities and tourism projects on the land, while Egypt will focus on developing the existing resort cities of Sharm el-Sheikh and Hurghada, the Saudi official said.

The new city is being built by the Red Sea. Picture: NEOM

The new city is being built by the Red Sea. Picture: NEOM

The kingdom will also work with Egypt and Jordan to attract European cruise companies to operate in the Red Sea during the winter season.

Saudi Arabia is negotiating with seven cruise companies and aims to build yacht marinas there.

It will also set up 50 resorts and four small cities as part of a separate tourism initiative announced last August and backed by the country’s Public Investment Fund.

The new city is being built by the Red Sea. Picture: NEOM

The Red Sea Project, made up of some 50 islands, will offer a nature reserve, diving on coral reefs and heritage sites.

Authorities have said it would begin work in 2019 and complete its first phase by late 2022.

Riyadh and Cairo also signed an environmental protocol on Sunday aimed at preserving the Red Sea’s coral reefs and preventing “visual pollution”, the official said.

The Saudi government has already asked local construction companies to build five palaces in NEOM.

Some international companies, including Japan’s Softbank, have said they are prepared to invest there.

This story originally appeared on The Sun and has been republished here with permission.