RIYADH: The Egyptian government has launched a mixed-use city project named “The Spine,” with investments exceeding 1.4 trillion Egyptian pounds ($27 billion), aimed at driving urban development and boosting the country’s economic growth.
The project will be developed by Egypt’s Talaat Moustafa Group in partnership with the National Bank of Egypt, combining government backing with private-sector execution.
Located east of Cairo within TMG’s Madinaty development, the project will be established as a special investment zone and span approximately 2.4 million sq. meters. It will integrate residential, commercial, hospitality, retail, entertainment and public green spaces within a single urban environment.
This comes as Egypt continues to implement macroeconomic reforms to attract investment and support growth, with the development of such projects central to its economic strategy.
Speaking at the launch ceremony, Prime Minister Mostafa Madbouly said: “The important message from the launch of this project at this time is that in the midst of what we are witnessing globally and locally, there are huge investments that see Egypt blessed with security and stability and that what is being injected with investments will achieve the highest possible economic returns.”
He added that the project will create more than 155,000 job opportunities and generate tax revenues exceeding 800 billion Egyptian pounds.
The development is designed as a smart city powered by artificial intelligence technologies, aimed at enhancing quality of life and improving service efficiency.
The prime minister said the “The Spine” project will position Egypt among countries that have invested heavily in developing integrated hubs spanning administrative, commercial, financial and entertainment functions.
The investment is equivalent to roughly 1 percent of Egypt’s gross domestic product, according to TMG, and is projected to generate approximately 818 billion Egyptian pounds in tax revenues over time.
During his remarks, Madbouly said Egypt is witnessing strong economic progress, with increasing investment across multiple sectors.
“In the next few days, we will see the opening of a number of large industrial projects in the economic zone of the Suez Canal,” he added.
The project comes as Egypt pushes ahead with economic reforms to stabilize its finances and attract foreign capital, with ratings agencies recently highlighting progress in fiscal consolidation and external balances.
Earlier this month, S&P Global Ratings affirmed Egypt’s sovereign credit ratings at “B-/B” with a stable outlook, citing progress in macroeconomic reforms and improved external buffers.
Moody’s Investors Service also reaffirmed Egypt’s long-term sovereign credit rating at Caa1, while maintaining a positive outlook, pointing to fiscal consolidation and structural reforms.
