The board of the General Authority for Investment and Free Zones (GAFI) approved the zone for the group’s subsidiary, Orion Urban Development Company, including the establishment of a dedicated customs area and an on-site government office to speed up licensing and operations.
The Spine project in New Cairo is a large-scale mixed-use development combining residential, commercial, financial, and entertainment components within a smart, AI-driven city framework.
SIZs are a new mechanism aimed at drawing domestic and foreign investment by offering streamlined customs and administrative procedures for industrial, commercial, and logistics activities.
The project still requires a final decree from the prime minister to become operational.
Officials say the zone is part of a broader push to improve Egypt’s investment climate and attract large-scale projects, particularly in real estate and urban development.
The Spine has total investment exceeding EGP 1.4 trillion ($27 billion), in partnership with the National Bank of Egypt (NBE), and will be developed over about 506 acres within Madinaty. Plans include offices, housing, retail space, and around 1.5 million square metres of green and open areas.
Developers estimate the project could create 55,000 direct jobs and 100,000 indirect jobs, contribute one percent to Egypt’s GDP, and generate EGP 818 billion in tax revenues over time, though timelines remain unclear.
Egypt has been bolstering its efforts to grow its real estate sector, which has remained active despite macroeconomic pressures, with developers maintaining ongoing projects and demand showing resilience, despite rising energy and, therefore, construction and financing costs.
Separately, TMG has expanded its financing activity, including a partnership with CI Capital to launch Awaed Real Estate Investment Fund, an EGP 8 billion real estate investment fund backed by income-generating commercial assets.
The developer is also behind other large projects, including a multi-billion-dollar coastal development on Egypt’s North Coast, as it seeks to tap foreign demand and boost hard currency revenues.
During the first half of the fiscal year 2025/2026, net investment inflows from real estate purchases by non-residents recorded $732.1 million, with total foreign direct investments (FDI) recorded an inflow of $9.3 billion.
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