What is driving Egypt to build a new capital in the desert?
Egypt is moving its capital from Cairo to a newly built city in the desert, with China playing a major role in its development, operation and long-term management.
The New Administrative Capital, located around 45 kilometres east of Cairo, is part of plans to ease urban congestion, modernise public services and position the country as a regional hub of governance and commerce.
Spanning 700 square kilometres, the new capital is designed to accommodate over six million people.
Since 2023, tens of thousands of civil servants have already relocated there, and the city has officially begun functioning as Egypt’s administrative centre following the start of President Abdel Fattah al-Sisi’s third term.
Banks, businesses and foreign diplomatic missions are also moving in, signalling that the shift is more than symbolic.
At the centre of the project is China’s state-owned construction giant, the China State Construction Engineering Corporation.
The firm is building the capital’s central business district and will now also be responsible for its operation and maintenance under a recent agreement between the Chinese and Egyptian governments.
This includes managing infrastructure, urban services, and commercial facilities.
Among the most prominent features of the new capital is the Iconic Tower, which stands at 385.8 metres and is now the tallest building in Africa.
The central business district also includes ministries, a presidential palace, parliament buildings, and embassies, all built at a cost of approximately $3.8 billion.
The Chinese presence in Egypt extends beyond this project, with over 2,800 Chinese companies operating in the country and investments exceeding $8 billion, much of it aligned with Beijing’s Belt and Road Initiative.
Egypt has introduced a cost-plus-margin model to manage utilities in the new city, aimed at keeping public control while benefiting from international expertise.
The model, where Chinese firms not only build but also operate large-scale projects, is becoming increasingly common across Africa and reflects a growing pattern of strategic partnerships between China and the continent.
For Egypt, the new capital represents a broader ambition and indicates where the country is headed.
This story is written and edited by the Global South World team, you can contact us here.
