Egypt Builds $58 Billion New Capital City to Ease Cairo Congestion and Drive Economic Growth
CAIRO — Egypt is pushing ahead with the construction of its $58 billion New Administrative Capital, a massive urban development project located about 45 kilometers east of Cairo, aimed at decongesting the overpopulated capital and ushering in a new phase of national transformation.
Conceived in 2015 under President Abdel Fattah el-Sisi, the new city is being developed as a modern, smart, and sustainable metropolis that will serve as the administrative and financial heart of Egypt. When completed, it is expected to accommodate more than six million residents and significantly reduce pressure on Cairo, one of the most crowded cities in the world with over 20 million inhabitants.
The sprawling city — often referred to as the “New Administrative Capital” (NAC) — will host all government ministries, foreign embassies, and major corporate headquarters. It will also feature luxury residential zones, business districts, green spaces, cultural landmarks, and cutting-edge infrastructure powered by renewable energy.
One of the project’s most iconic landmarks is Africa’s tallest skyscraper, known as the Iconic Tower, which stands over 385 meters tall and dominates the skyline of the Central Business District (CBD). The skyscraper symbolizes Egypt’s growing ambitions to position itself as a hub of innovation, investment, and modernity on the African continent.
Officials say the project represents more than just a relocation of government offices — it is a bold attempt to redefine Egypt’s urban identity, boost employment, and attract foreign investment through large-scale infrastructure development. The city is being built in multiple phases, with the first phase — covering approximately 168 square kilometers — already hosting key government facilities and residential areas nearing completion.
According to Egypt’s Ministry of Housing, Utilities, and Urban Communities, the project is being funded through a mix of public-private partnerships and foreign investments, primarily from Chinese construction firms and Gulf investors.
“This new capital reflects our vision for a modern, connected Egypt — one that embraces technology, sustainability, and opportunity,” said Mostafa Madbouly, Egypt’s Prime Minister, during a recent site visit.
The New Administrative Capital is designed with advanced digital infrastructure, mass transit systems, and smart city technologies, including integrated surveillance, automated utilities, and an extensive network of electric transport options.
While the project has drawn praise for its ambition, it has also attracted criticism from some economists who question its high cost amid ongoing economic challenges and debt pressures. However, supporters argue that the new capital will generate long-term economic dividends, stimulate job creation, and help redistribute Egypt’s population density away from Cairo’s urban sprawl.
Once completed, the city is expected to become a symbol of Egypt’s modernization drive, offering a blueprint for other African nations seeking to build new, future-ready capitals.
The project, with its combination of technology, architecture, and national vision, positions Egypt as a leader in Africa’s next wave of urban transformation.
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