Egypt has allocated more than 1,000 square kilometers of land along the Red Sea in South Sinai to NEOM, a mega-city and business zone announced by Saudi Crown Prince Mohammed bin Salman at an international investment conference in Riyadh last October, a Saudi official told Reuters on March 6.

The land is part of a new joint investment fund at the value of more than USD 10 bn, unveiled by the two countries during Prince Mohammed’s visit to Cairo.

Riyadh’s part of the joint fund will be cash to help develop the Egyptian side of NEOM, a 26,500-square-kilometer business zone in the northwest of Saudi Arabia, which extends across Saudi Arabia, Egypt, and Jordan.

Neom, with its own legislation and judicial system designed to attract international investors, will focus on industries such as biotechnology, food, energy and water, advanced manufacturing, and tourism, according to officials.

Public and private investment in NEOM is expected to reach USD 500 bn.

Saudi Arabia also plans to establish seven cities and tourism projects, whereas Egypt will continue to develop the existing resort cities of Sharm El Sheikh and Hurghada, the Saudi official said.