The foundation stone of a new state-owned radio station's headquarters in the city of Halayeb was placed in the presence of information minister, Dorreya Sharaf El-Din on Tuesday.
Halayeb is located south of the Red Sea governorate.
According to Red Sea governor Ahmed Abdullah, El-Din's visit came as part of "the state's interest in developing Halayeb and Shalateen" and to meet requests for development by locals last February during a visit by presidential media advisor, Ahmed El-Muslimany.
During his visit, El-Muslimany vowed to enhance development in the "neglected area".
On 18 February, Egypt's former prime minister, Hazem El-Beblawi, established Halayeb as its own city, separating it from Shalateen in a move the government stated was for development purposes.
Located near the Egypt-Sudan border, Halayeb and Shalateen have been a source of dispute between the two countries for decades.
Both Egypt and Sudan claim sovereignty over the land.
Last January, a Sudanese minister stated that Halayeb and Shalateen were 100 percent Sudanese, adding that there are currently talks with Cairo regarding the issue.
His statement was slammed by Egypt's foreign ministry spokesperson who stressed that the disputed land is considered to be 100 percent Egyptian, and that there is no room for compromise.