China’s expanding role in Egypt’s New Administrative Capital (NAC) has moved beyond construction into long-term operations, prompting concerns about whether the project represents a development opportunity or a strategic dependency. Located approximately 45 kilometers east of Cairo, the 700 square kilometer city is intended to reduce overcrowding in the capital and eventually house more than six million people. Central to the project is a $3.8 billion Central Business District (CBD), which includes government buildings, foreign embassies, and the 385.8-meter Iconic Tower. The China State Construction Engineering Corporation (CSCEC), a Chinese state-owned firm, is not only building the district but will also operate and maintain it. About 85 percent of the financing comes from Chinese lenders, including a $2.2 billion loan from China Exim Bank.
Read more: EG: China’s Smart City Vision or Surveillance Hub? Egypt’s Future in Question
Huge capital investment is changing the face of modern Egypt, but is this growth being reflected in its AV sector? Paul Milligan speaks to those on the ground.
It has been anything but dull in the last five years in Egypt. Internal and external investment has surged which has seen a slew of huge infrastructure projects get the go-ahead, including the construction of a whole new city. Egypt’s economic outlook is on an upward trajectory, with a predicted GDP growth of 4.7% in 2025-2026, surpassing the IMF’s previous forecast of 4.1%.
Read more: Egypt is building smart cities for a digital future
These investments have focused on 5G technology and smart city development according to ICT Minister Amr Talaat.
During his speech at the 5G and Beyond Forum, Minister of Communications and Information Technology Amr Talaat shared that the Egyptian government has invested over EGP 150 billion since 2018 to modernise the nation's digital infrastructure, with a particular focus on 5G technology and smart city development. He highlighted the potential of 5G to facilitate the creation of smart cities that prioritize environmental sustainability, resource efficiency, and digital inclusion.
Read more: EG: EGP 150 Billion Invested in Digital Infrastructure Since 2018
President Abdel Fattah El-Sisi emphasizes digital transformation, AI strategy, telecom investment, and youth training, aiming to solidify Egypt’s tech leadership globally.
President Abdel Fattah El-Sisi met with Prime Minister, Dr. Mostafa Madbouly, and Minister of Communications and Information Technology, Dr. Amr Talaat.
Spokesman for the Presidency, Ambassador Mohamed El-Shennawy, stated that during the meeting, the President was briefed on ongoing efforts to implement Egypt’s Digital Strategy, which aims to develop the outsourcing industry and encourage global companies to expand their operations in Egypt.
Read more: Egypt Advances Digital Transformation and AI Strategy
The new city is designed to be a major regional administrative and financial centre, as well as being a technologically advanced "smart" city.
Overcrowding is a growing problem that many major cities around the world are facing, as more and more people flock to them in search of better economic opportunities.
Some countries have taken bold and ambitious steps to solve the problem that these population inflows are causing.