The first ferry service linking Hurghada with Dhaba in Saudi Arabia will begin operating in June, it was announced on Wednesday.
The new line aims to encourage Saudi tourists to visit Egypt, Tourism Minister Hisham Zaazou said.
Five luxurious ferries will transport tourists and their cars across the Red Sea.
Tourism in Egypt has suffered a severe decline since the January 2011 revolution.
A prolonged period of unrest has led foreign governments to warn their citizens against visiting the country.
Saudi travel industry representatives, including Arab Tourism Organisation head Bandar bin Fahd Al-Fahid, are currently visiting Hurghada.
Earlier this week, EgyptAir launched its first direct flights between Hurghada and Jeddah.
Almost 120,000 Arab tourists visited Egypt in March, compared to more than 180,000 visitors in the same period the previous year.