Bloomberg reported today, Thursday, that Egypt and Saudi Arabia are in preliminary talks regarding the development rights of the area along the northern Red Sea coast known as Ras Jamila. Sources familiar with the matter, who requested anonymity because the negotiations are not public, stated, "If the deal is agreed upon, it will be a further step in efforts to support the Egyptian economy following an agreement with the UAE concerning the development of Ras al-Hikma and an agreement with the International Monetary Fund."
Bloomberg noted that Saudi authorities did not respond to requests for comment. According to the agency, sources indicated that negotiations between the Egyptian and Saudi authorities regarding Ras Jamila, which is located near the Sharm El Sheikh resort in Sinai and across the Red Sea from Saudi Arabia's massive NEOM project, "are still in their early stages and may fail."
It clarified that the site is much smaller than Ras al-Hikma, which is about three times the size of Manhattan; however, any deal could amount to several billion dollars, according to the sources. Some individuals stated that the UAE's moves in Egypt, including acquiring stakes in state-owned companies, prompted Saudi Arabia, the region's political heavyweight, to expedite its deal talks.
The website "Egypt Times" mentioned that the Egyptian government is preparing to launch a number of new projects in the coming period following the signing of a major investment deal between Egypt and the UAE to develop the "Ras al-Hikma" area. According to the Egyptian website, among the projects to be launched is the "Ras Jamila" area in Sharm El Sheikh. Informed sources told "Egypt Times" that the proposal will resemble that of Ras al-Hikma and will be with Saudi Arabia to develop the area.
