{"id":18389,"date":"2024-10-10T17:40:18","date_gmt":"2024-10-10T15:40:18","guid":{"rendered":"https:\/\/zawia3.com\/?p=18389"},"modified":"2026-10-08T23:38:30","modified_gmt":"2026-10-08T21:38:30","slug":"ras-banas","status":"publish","type":"post","link":"https:\/\/zawia3.com\/en\/ras-banas\/","title":{"rendered":"Egypt-Gulf Deals… Ras Banas Follows in the Footsteps of Ras Gamila and Ras El-Hekma"},"content":{"rendered":"

Facing a foreign debt crisis that has exceeded USD 160 billion, the Egyptian government is seeking to attract foreign investment as part of its efforts to close the growing financing gap. In this context, it is considering offering strategic sites, such as the Ras Banas peninsula on the Red Sea, for foreign investment. This area is of great strategic importance, lying between the Suez Canal to the north, the Bab El-Mandeb Strait to the south and the Strait of Hormuz to the east, and it hosts the ancient port of Berenice as well as a modern military base.<\/p>\n

This direction raises questions about its potential effects on national security. Offering areas such as Ras Banas for foreign investment may have implications for Egyptian sovereignty over these sensitive sites, especially in the absence of clear information about the conditions that would guarantee continued Egyptian control over these vital areas.<\/p>\n

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Ras Banas<\/a> lies on the Red Sea coast and forms a peninsula surrounded by water to the north, south and east. This unique area extends about 50 kilometres into the Red Sea, giving it a distinctive seafront that connects it to all the vital cities in the region. It is about 356 kilometres from the city of Luxor in southern Egypt, which places it in a strategic location easily accessible from major historical and tourist sites in Egypt.<\/p>\n

Ras Banas is distinguished by clusters of coral reefs, such as the “Satayeh” and “Dolphin House” reefs, and the area also includes several small islands. It is also close to tourist sites such as the Wadi El-Gemal protected area and Qulaan Bay, which adds to the variety of tourist activities available in the area.<\/p>\n

The land in Ras Banas, which belongs to the Egyptian Ministry of Housing, is part of a land bank valued at about EGP 2 trillion. This land will be offered gradually to investors, with an advantage for local investors dealing in Egyptian pounds, to ease pressure on foreign currency reserves.<\/p>\n<\/blockquote>\n

Recommended reading:<\/strong> Why Does Egypt Prioritise the Foreign Investor?<\/a><\/p>\n

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Dangerous Possibilities<\/h3>\n

Opening the Ras Banas area to investors, whether local or foreign, raises concern about the potential impact on national security, especially regarding the sensitive military sites in the area. Opponents believe this step could transfer control of strategic assets to external parties, which could weaken Egypt’s position in the face of regional and international challenges.<\/p>\n

On the other hand, some defend this step as an economic necessity to stimulate growth and attract foreign and local investment. Nevertheless, the debate continues over whether this policy strikes a balance between economic interests and security considerations.<\/p>\n

Medhat Nafea, an economist, professor of finance and former chairman of the board of the Metallurgical Industries Holding Company, believes that offering unused assets to investors is a positive step, especially since the government and state institutions are not making optimal use of these assets. But he stresses the need for strict guarantees to preserve the rights of the state and future generations, considering this the most important condition in this context.<\/p>\n

Speaking to Zawia3, he points to the importance of drafting contracts precisely and regulating the market for these assets to ensure the desired returns. He also stresses that the governance of the projects offered must be clear and effective, so that investments do not become an additional burden on the economy, and warns of the effect of these projects on the trade balance if the government cannot provide raw materials and labour locally.<\/p>\n

He adds that the government should adopt a well-studied strategy for distributing assets geographically, through investment plans that offer incentives to areas that need development or have tourist advantages. Regarding areas that contain nature reserves, Nafea points to the importance of investments complying with environmental conservation standards.<\/p>\n

Regarding areas near military bases, the expert explains that he does not have accurate information, but stresses the need for decisions that guarantee the preservation of national security and the rights of current and future generations.<\/p>\n

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Through Zawia3, Nafea sends a message to officials stressing the importance of full transparency in dealing with these investments from the outset. He proposes publishing information about them clearly on accessible websites, in addition to preparing a comprehensive investment map showing the available opportunities, which would help strengthen investor confidence. On the other hand, Nafea warns that a lack of transparency, whether intentional or the result of mismanagement, could send negative messages to investors and harm the Egyptian economy in the long term.<\/p>\n<\/blockquote>\n

As for offering assets for investment, Nafea stresses that opening the field to local and foreign investors is necessary and should not be disputed, but he stresses the importance of a well-studied plan that ensures appropriate areas are chosen for investment, away from randomness.<\/p>\n

Recommended reading:<\/strong> Saudi, Emirati and Local Withdrawals Stall Huge Projects in Egypt<\/a><\/p>\n

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Sale Deals for the Coastal Headlands<\/h3>\n

The new offering of the Ras Banas area came about seven months after the Egyptian government, led by Prime Minister Mostafa Madbouly, announced the offering of the Ras El-Hekma area<\/a> on Egypt’s north-west coast for investment. The UAE obtained this project for USD 35 billion, while Egypt retains 35% of the project’s returns, which sparked wide controversy and criticism over the national benefit of this deal. The UAE received the Ras El-Hekma land last week, and the Egyptian prime minister<\/a> said, commenting on the launch of the project: “The Ras El-Hekma project creates a huge volume of job opportunities and, once the development of the Ras El-Hekma area is complete, will provide a home for more than 2 million people.”<\/p>\n

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Last February, the offering of the Ras Gamila<\/a> area in Sharm El-Sheikh, one of the most famous tourist destinations in South Sinai, was announced for a huge tourist and hotel project on an area of 860,000 feddans. Despite talk of Saudi participation in the deal worth USD 15 billion, no official confirmation has yet been issued on the project’s progress, and no further details have emerged indicating whether it has been postponed or cancelled, or whether it has been replaced by the offering of Ras Banas.<\/p>\n<\/blockquote>\n

Ras Gamila enjoys a strategic location near the Strait of Tiran and the islands of Tiran and Sanafir, whose sovereignty was transferred to Saudi Arabia in 2016, despite court rulings affirming that the two islands are Egyptian and that the deal violated the Egyptian Constitution; this increases the likelihood of Saudi companies stepping in to acquire this deal, especially given its proximity to the planned site of the bridge that is to link Egypt and Saudi Arabia across the Red Sea.<\/p>\n

Recommended reading:<\/strong> Ras Gamila on Its Way to Saudi Investment… The Government on Ras El-Hekma: Investment, Not an Asset Sale<\/a><\/p>\n

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Saudi Arabia Closes In on the Deal<\/h3>\n

Amid growing competition between Saudi Arabia and the UAE to control strategic sites on the Red Sea, the question arises whether Saudi Arabia would allow the UAE to obtain Ras Banas, which is a vital gateway to the Red Sea, especially with the Saudi port of Yanbu on the opposite coast.<\/p>\n

In the context of this Gulf rivalry, Tarek Shoukry, deputy head of the House of Representatives’ Housing Committee, expects Saudi Arabia to obtain the Ras Banas project, especially after the UAE completed the Ras El-Hekma deal. In his statements<\/a>, Shoukry pointed out that “the Ras El-Hekma deal is one of the largest international real estate deals, and the government is seeking to complete other similar deals.”<\/p>\n

Shoukry stresses that there is great seriousness on the Saudi side in the negotiations on the Ras Banas project, noting that “the process is progressing positively, but it is expected to take some time.”<\/p>\n

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Last August, an agreement between Egypt and Kuwait was announced to develop the port of Berenice<\/a> near Ras Banas, with the aim of turning it into an integrated economic and logistics zone in cooperation with the companies of Kuwait’s Alghanim Group. This agreement raises questions about whether Kuwait will have a future role in developing Ras Banas, especially since it has rarely taken part in projects to acquire strategic Egyptian assets.<\/p>\n<\/blockquote>\n

Recommended reading:<\/strong> Ras El-Hekma Residents: We Will Resist the Sale of Our City<\/a><\/p>\n

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Fears<\/h3>\n

Mamdouh El-Mounir<\/strong>, an expert in political and strategic affairs, tells us that the Egyptian government’s plan to sell its strategic assets, including the Ras Banas peninsula, comes as an attempt to raise hard currency to repay accumulated debts, and he believes this approach does not address the root economic problems; rather, it reflects a strategy based on selling the country’s resources instead of implementing fundamental reforms that would restore balance and sustainability to the Egyptian economy.<\/p>\n

He strongly warns of the security consequences of this direction, especially since Ras Banas is not just a piece of land but a pivotal strategic site on the Red Sea, near the new Berenice naval base and the ancient port of Berenice. This area, according to him, controls maritime navigation and trade in the Red Sea and is dangerously close to the Bab El-Mandeb Strait, which is considered a vital artery for global trade. He believes that selling this sensitive site means opening the door to foreign influence in one of the world’s most important waterways, posing a direct threat to Egypt’s sovereignty and national security.<\/p>\n

On the other hand, El-Mounir believes that offering land such as Ras El-Hekma<\/a> on the Mediterranean for foreign investment, despite its importance, does not carry the same military risks as Ras Banas. But he expresses concern about the repercussions of transferring vast areas of strategic land into the hands of foreign investors, which could undermine national control over the country’s resources.<\/p>\n

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El-Mounir expresses fears that such deals are being granted to countries such as the UAE or others, enabling them to extend their influence over sensitive strategic sites in Egypt, given their questionable roles in areas such as Sudan and the Horn of Africa. This expansion of influence, he explains, enables countries such as the United Arab Emirates and the Kingdom of Saudi Arabia to directly influence Egypt’s domestic and foreign policies, and may open the way to unwanted interference in the country’s vital affairs.<\/p>\n<\/blockquote>\n

On the other hand, he believes Riyadh may not stand idly by in the face of growing Emirati expansion, especially since Ras Banas lies opposite the Saudi port of Yanbu, which would push the kingdom to act to preserve the balance of power in the region. As for Kuwait, it may have ambitions to strengthen its presence through the port of Berenice, but it does not have the financial and political clout of the UAE and Saudi Arabia, which weakens its chances of entering these deals strongly.<\/p>\n

Economically, El-Mounir describes the sale of assets as a short-term measure that does not address the roots of the economic crisis Cairo is suffering from; he believes the real problem lies in the structure of the economy itself, which suffers from rising debt and a lack of growth opportunities as a result of mismanagement. In view of these challenges, El-Mounir stresses that the solution lies not in selling assets but in adopting reform policies that boost local investment and increase productivity, while creating a stable political environment attractive to investment.<\/p>\n

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Critical Voices<\/h3>\n

Mohamed Sayed Ali<\/strong>, an engineer living in Japan who works as an associate professor at a Japanese university, rejects the completion of the Ras Banas deal, asking: “Is there a place in Egypt suitable for launching rockets carrying satellites into space? This question was put to me by a number of colleagues and friends in Egypt and some of my Japanese colleagues at the Japanese space agency (JAXA).” He answers: “Yes, there is, and the best place, based on my specialisation and experience, which I favour, is the eastern tip of the Ras Banas peninsula; the Ras Banas peninsula is about 50 kilometres long, deep into the Red Sea.”<\/p>\n

In a post<\/a> on his personal Facebook account, the specialist in space engineering and nanotechnology describes the Ras Banas peninsula as the best location in Egypt for launching satellites, as this area offers many advantages, including being the Egyptian area closest to the equator, which could enhance launch efficiency into equatorial and low-inclination orbits. In addition, launching over the sea reduces the risk of debris falling on populated areas. There is also an airport, a seaport and a naval military base on the Red Sea coast.<\/p>\n

Ali reveals more details about the technical reasons behind this choice, stressing that launching near the equator boosts a satellite’s orbit thanks to the Earth’s rotation, which could save fuel and increase payload capacity. Egypt’s southernmost point lies at about 22 degrees north latitude, and Ras Banas is the closest suitable Egyptian location to the equator, in addition to the ease of access and logistics to Ras Banas; this site can be given good transport links, such as the seaport or a nearby airport, which would facilitate transporting launch vehicles, payloads and personnel by ship and aircraft. There is a port and an airport as well as a naval base to provide protection against any aggression.<\/p>\n

He concludes by pointing to the importance of Ras Banas in terms of safety and population density. According to his description, the peninsula lies in a relatively remote area of southern Egypt on the Red Sea coast, and rockets would be launched eastward over the Red Sea, which would reduce the risk of damage or injury to people and property in the event of a launch failure. The peninsula is also geologically stable, and its terrain is ideal for launch operations. According to a three-dimensional map showing the terrain of the Ras Banas peninsula, it consists of mountains in the middle and plains at the edges, and the mountains in the middle of the peninsula are useful for launch operations, as they act as natural windbreaks.<\/p>\n

Despite mounting criticism from citizens, political parties and public figures of the deals ceding Egyptian assets and land in strategic areas, the government in Cairo has not organised any broad public dialogue to discuss those deals. This approach is seen as ignoring demands for an open public discussion of the impact of these decisions on national security and the economy. At the same time, citizens feel that the economic situation has not improved tangibly, as negative repercussions continue to affect their daily lives amid growing fears that the economic crisis will worsen.<\/p>\n","protected":false},"excerpt":{"rendered":"

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