Egypt PM outlines plan to develop North Sinai into key investment, development hub

Egypt aims to transform North Sinai into a major integrated development hub covering urban, industrial, commercial, agricultural, and tourism sectors, Prime Minister Mostafa Madbouly said as he toured several infrastructure and industrial projects in the governorate on Sunday.

The prime minister's visit, which coincides with Sinai Liberation Day celebrations, underscores Cairo’s push to accelerate comprehensive development in the peninsula through large-scale investments in transport, industry, water infrastructure, and public services under a national plan launched by President Abdel-Fattah El-Sisi.

During the tour, Madbouly inspected progress on a 353-kilometre railway linking Bir El-Abd, Arish, and Ras El-Naqb, part of the Arish–Taba logistics corridor, along with a 12-kilometre rail link to Arish Port designed to transport goods across the country through what officials describe as a “development train.”

Transport Minister Kamel Al-Wazir noted that the railway forms part of a broader 500-km Sinai rail network extending from Ferdan to Taba via East Port Said, Bir El-Abd, and Arish, aimed at supporting trade flows and linking Sinai to the rest of Egypt.

Work is progressing on the 83-kilometre Bir El-Abd–Arish section, which includes seven stations and major engineering works such as bridges and tunnels, while other phases continue around the clock.

In Arish, Madbouly also inspected a seawater desalination plant with a current capacity of 100,000 cubic metres per day, set to expand to 300,000 cubic metres per day in later phases, according to Housing Minister Randa El-Menshawy.

Built on an initial area of 59,000 square metres, the plant is part of a broader plan to secure water supplies in North Sinai through desalination, Nile water, and groundwater sources. Officials stated that the expanded capacity would help meet growing demand across cities and districts in the governorate.

Madbouly added that the government is prioritizing desalination projects and expanding partnerships with international specialized companies, in line with directives from President El-Sisi, while also working to localize related industries and transfer advanced technologies.

PM Madbouly also attended the inauguration of the Sinai National Company for Plastic Industries factory in the Bir El-Abd industrial zone, a project officials described as a cornerstone for building an industrial base in North Sinai.

The factory, costing EGP 530 million and built on about 20,000 square metres, employs 170 workers, 46 percent of them from Sinai. It includes a woven sacks unit with an annual production capacity of about 55 million bags used in sectors such as cement, food, agriculture, and construction materials. The facility is expected to serve both the local market and exports, especially to African countries.

“This project reflects the state’s commitment to extending industrial development across all parts of Egypt,” Madbouly said, adding that North Sinai is being positioned as an attractive destination for investment.

North Sinai Governor Khaled Megawer said the governorate’s development plan combines infrastructure expansion, through roads, ports, railways, and tunnels, with a wider economic approach that includes public investment plans through 2030, private-sector participation, and human development programmes supported by more than 222 civil society organizations.

Madbouly also made an unscheduled stop to inspect a 20-km road-upgrading project linking Al-Mathlath, Jalbana, and Balouza under the presidential “Haya Karima” initiative, alongside maintenance work on the Qantara East–Arish road, including lane expansion and resurfacing.

Al-Wazir said transport infrastructure is central to attracting investment, particularly in agriculture, industry, and tourism, noting that integrated logistics corridors are being developed in parallel with road upgrades to connect Sinai more effectively with national markets.

The prime minister instructed officials to speed up work across projects to improve mobility, strengthen safety, and support economic activity, as Egypt continues efforts to integrate Sinai into its wider development strategy.

Egypt’s plan to develop North Sinai is part of a long-term national strategy launched after 2014 to stabilize the peninsula and integrate it more fully into the country’s economy through large-scale infrastructure, industrial development, and population redistribution.

The plan combines security consolidation with sustained public investment and private-sector incentives to create new growth poles outside the Nile Valley. North Sinai, in particular, is being positioned as a strategic hub linking the Mediterranean to the Gulf of Aqaba and serving as a gateway for trade, logistics, and industry.

At the centre of this strategy is the Arish–Taba integrated logistics corridor, a multi-modal network of ports, railways, highways, and logistics zones designed to connect production centres in Sinai with domestic markets and export routes to Europe, Asia, and the Gulf.

The corridor includes the upgrading of Arish Port on the Mediterranean and the rehabilitation of a 500-km railway line extending from the Suez Canal axis through Bir El-Abd and Arish to Taba.

Water security is another central pillar of the plan. Given Sinai’s limited natural freshwater resources, the government has prioritized large-scale desalination projects, alongside groundwater development and Nile water transfers, to support urban growth and agricultural reclamation.

The development strategy also places strong emphasis on connectivity and mobility, with extensive road-building programmes, tunnels linking Sinai to the mainland, and the expansion of airports and seaports.

These projects aim to reduce isolation, facilitate the movement of goods and people, and integrate Sinai into national and regional supply chains.