El Gouna, Egypt: An Investor’s Nirvana on the Red Sea
Around 35 years ago, Egyptian businessman Samih Sawiris was on the look out for the perfect spot, somewhere along the Red Sea coast, to create a waterside idyll to be enjoyed by his nearest and dearest. His vision was a modest one: a smattering of beach houses, perhaps, to accommodate 20 or so people, with a private marina for their boats. A playground in the sun, remote from—but accessible to—the facilities, amenities, and infrastructure found in any much larger municipality.
Enlisting the help of locals with intimate knowledge of the area, Sawiris settled on a spot, just over 20 miles south of Hurghada International airport, which suited his requirements: close to the best diving sites, swimming and fishing zones, replete with reachable islands, and boasting a natural harbor.
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Today, that meticulously selected hotspot is a home to a bustling, multicultural community of around 25,000 people from over 50 different nations, spread over 40 residential neighborhoods. A serious claimant to the widely claimed “Jewel of The Red Sea” tag, it’s a place where thoughtfully designed property developments, waterfront townhouses and spacious villas nestle as close to vibrant promenades as they do world-class commercial and leisure amenities and turquoise lagoons.
Characterized by its year-round sunshine but relatively temperate climate (temperatures average 27 degrees Celsius) and signature architecture (a modern take on the Nubian aesthetic native to southern Egypt and northern Sudan), El Gouna also hosts around a million visitors each year, who come to make the most of its marinas, beaches, parks, restaurants, golf-courses, and watersports.
Its cultural credentials are growing exponentially. The El Gouna Film Festival, which has taken place here since 2017, is the largest equivalent of Cannes’ iconic event in the Arab world, whilst the annual Summer dance festival is also gaining prominence rapidly. The El Gouna Conference and Culture Centre (GCCC), meanwhile—set within an artificial lagoon and surrounded by arched barrel vaults—the building is designed by the international Studio Seilern Architects, with an inspiration rooted in Middle Eastern and Egyptian traditional architecture with the scale of ancient Egyptian architecture a guiding factor in the conceptualisation of the scheme.
El Gouna By Numbers
9,200 – The total number of residential properties in El Gouna, currently housing 25,000 residents
40+ The total number of residential neighborhoods
50+ – The number of nationalities of El Gouna residents.
36.9 million – El Gouna’s surface area, in square metres
1 million – The Number of annual visitors to El Gouna
27°c – the resort’s average temperature
El Gouna is also a hub for sports lovers: A second 18-hole golf course, on top of that belonging to the Steigenberger Golf Resort, is close to completion at the time of writing; world-class squash, tennis and padel tennis facilities offer training as well as international-standard courts for those simply wanting to compete with like-minded seasoned players; kite-surfing, sailing, windsurfing and wakeboarding are part of the everyday tableau on the many beaches and water sports centres in El Gouna Extreme sports lovers are catered for— with the biggest skate park in the Middle East currently under construction Heazy Sake park is set to open its gates to the sport’s lovers in 2025 – when it comes to care, even the fully-fledged local hospital has a medical division devoted to diving complications with a special decompression chamber, for the extremely rare occasions this is required—whilst a more leisurely love of all things aquatic is catered for by Sliders cable park, and a plethora of boat tours.
El Gouna is also becoming a center of gravity for business operations. The second edition of Forbes Middle East Under 30 Summit took place here in January 2024, whilst G Valley—the fully integrated neighborhood fostering a robust business ecosystem for SMEs and entrepreneurs— boasts a variety of surrounding retail establishments, as well as a MICE (Meeting, Incentives, Conferences and Exhibitions) hotel and a transportation hub. In addition, discussions are underway with numerous global banks and other financial institutions to set up a presence in El Gouna Business Park.
The present private jet strip, despite the proximity of the international airport, is a core addition to El Gouna’s manifold attractions.
CROSSHEAD: Mindful Expansion
A little over half of El Gouna’s 36.9 million square metres has been developed to date: And to say that Orascom Development Holding’s plans for its future are being formulated with perspicacity would be a serious understatement.
“We’re really focusing on education and healthcare, because of the growing number of permanent residents,” explains Mohamed Amer, El Gouna’s CEO. “When we think about sustainability we mean two things: the sustainability of the town’s municipal infrastructure, and then of course there’s environmental sustainability. That’s something we’re very proud of, and has been part of El Gouna’s DNA since its conception. We have 18 desalination plants, we treat all our wastewater for irrigation as well as treated water pipelines from Hurghada for the same purpose, and over 70% of our plastic waste is being recycled. Any plastic bag you see here is biodegradable.”
El Gouna was the first destination in Africa and the Middle East to receive the Global Green Award (in 2014), and its annual Earth Week sees community led programs such as beach clean-ups, as well as lights-out awareness and tree-planting initiatives and markets replete with locally made products, and sustainable crafts made from recycled materials.
Meanwhile, an ongoing partnership with SolarizEgypt is boosting the output of a nearby solar photovoltaic power plant on an ongoing basis. “We have the biggest solar plant of any privately owned community in Egypt, catering for 7 to 8 percent of our energy needs” says Amer, “and we’re doubling it—with a long-term plan to triple it. We’re looking to make 65 percent of all our mobility completely electric.” In keeping with Orascom Development’s dedication to being sustainable whilst also sympathetic to the town’s authentic aesthetic, meanwhile, are the road surfaces: “We had a lot of discussion about this,” says Amer. “Should we use recycled asphalt, or compacted earth? We want to retain El Gouna’s DNA and ensure it never feels like a concrete jungle and we are taking the necessary steps to ensure that.”
“Already El Gouna’s internet is the fastest in Egypt, and digital transformation is a major priority. As is retail. The town already has 670-plus retail venues in its repertoire”, Amer says, and El Gouna wishes to build on this tally: but mindfully so. “The retail scene is carefully selected,” says Amer. “We’re very specific in terms of what kind of establishments we’re welcoming. We get some requests from the community about what kind of retail outlets they wish to be present, which we embrace, but we also want to keep on innovating — with a focus on homegrown concepts. We love to see a brand born here, and then venture out, across Egypt and beyond.”
A wellness hotel and senior living facilities are also in the pipeline, along with other health initiatives—we’re considering adding cosmetic dentistry, radiology, minor surgeries offerings,” says Amer—whilst extreme sports is also seen as a potential growth area. “We’re developing the largest skatepark, HEAZY, in Middle Eastern Africa, and also moving and revamping our motocross arena and go-carting facilities.”
All this innovation is possible, says Amer, because of the autonomy Orascom Development enjoys over El Gouna. “What makes El Gouna so unique is the fact that it’s privately owned,” he says. “We can control how to shape it. Take the building of the GCCC: the main reason behind it is to position El Gouna as a center for arts and culture, and it’s where we host some of the biggest events in the region, and that’s extremely important in the positioning of the brand.” Meanwhile, ensuring that the autonomy which comes with private ownership enhances a welcoming culture—one that newcomers find warm and inviting—is paramount to Orascom Development.
CROSSHEAD: Tuban: The Next Chapter
A perfect embodiment of the El Gouna philosophy, as outlined by Amer, is now coming to fruition in the form of Tuban: The town’s latest mix-use district, now launching, which offers a distilled version of all that draws people to El Gouna, whether as investors, full-time or part-time residents or as tourists.
Offering premium waterfront living, the project—which is made up of contemporary apartments, waterfront townhouses and spacious villas, connected by picturesque trails and set within Venetian-inspired residential island enclaves surrounded by marinas, beaches, and parks—will be replete with recreational opportunities, social amenities, and other life-enhancing benefits. Positioned within walking distance of El Gouna Hospital and G Valley, it is set to become a centre of gravity for small and medium enterprises (SMEs) and entrepreneurs as well as people simply wishing to own a residence, for part- or full-time occupancy, within remarkable local attractions growing by the year.
Urban engineering firm EDSA is the mastermind behind an elegant aesthetic—influenced by biophilic concepts and graced with cascading elevations, eclectic rooflines, and private courtyards, and is enveloped by immersive landscapes and scenic waterbodies. “When you look at the plans, it actually looks like the heart of the town, with all the different canals leading to it being the arteries,” says, Amer, rather poetically.
Renowned architect Hector Barroso, designer of Tuban Waterfalls, the first residential phase—a cluster of elegant, low-maintenance townhouses made from plaster, concrete and wood and blessed with enclosed patios bathed in natural light and ventilation—is set to be completed by first quarter of 2027. And, the investment potential is exceptional: with the town trading in US dollars yet another factor adding to the appeal. “The main reason for it is, from day one, El Gouna was founded as an international community, but it also means we’re protected from any currency fluctuations,” says Amer.
Speculators might also see El Gouna, more broadly, as an excellent opportunity to gain exposure to Africa: “Orascom Development Holding’s listing on the SIX Swiss Exchange offers a compelling opportunity for stock investors seeking exposure to the dynamic real estate markets of Africa and the GCC balanced with the benefits of Switzerland’s strong regulatory environment,” as Omar El Hamamsy, Group CEO of Orascom Development, puts it. Orascom Development Egypt, ODH’s largest subsidiary, is also listed on the Egyptian Stock Exchange.
Meanwhile, you might eye up El Gouna with the same feelings towards it that Samih Sawiris did back in 1989: as an opportunity to invest in something which pays dividends of an ethereal nature: Sheer life enrichment for you and your loved ones. “At El Gouna, we offer a range of experiences that blend tranquillity and relaxation, a vibrant party atmosphere, and authentic charm, all enriched by a strong sense of community” says Amer. “What makes the community in El Gouna unique is, people from all over the world coming together, all wanting the place to be even better. They all want to live life as it should be.”
The Tuban Townhouses first phase will cost between $590,000-$890,000. Please visit elgouna.com for information about purchase options including payment plans and registration fees.
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