Cairo
Source: Al-Wafd Newspaper
Prof. Dr. Ali Mohammed Al-Khoury
The Sinai Peninsula is a region of strategic importance to Egypt, not only for its natural and historical resources, but also for its role as a fundamental pillar of national security and sustainable economic development. For decades, the peninsula’s enormous potential has been hindered by security and development challenges, hindering its full potential to drive the national economy. In recent years, the Egyptian government has redrawn Sinai’s development map with the aim of transforming it into a center for sustainable development and investment.
Sinai: Untapped Opportunities at the Heart of Investment
Sinai boasts tremendous investment potential in multiple sectors, from tourism to agriculture, from energy to industry. Its stunning coastline and natural sites make it an ideal destination for tourism investments. Sinai also boasts vast agricultural areas that can be exploited for innovative agricultural projects, such as organic farms and environmental projects, that meet the needs of both local and international markets. In the energy sector, Sinai is rich in vast natural resources, including natural gas reserves and solar energy sources, making it fertile ground for renewable energy projects. These resources could transform Sinai into a regional energy hub, especially in light of the growing demand for renewable energy in global markets.
Figures Reflecting the Transformation
Public investments in Sinai during 2022/2023 reached approximately EGP 73.3 billion, a significant increase of more than 15 times compared to 2013/2014. This investment influx coincided with the establishment of advanced service centers, with three investor service centers opened at a total cost of EGP 215.5 million. These centers serve more than 10,500 companies and also provide 332 new investment opportunities.
In a move aimed at transforming Sinai into an industrial heart pulsating with diverse economic activities, 139 industrial opportunities were identified in Sinai and the Canal cities, and eight new industrial zones were launched. Thanks to these efforts, projects implemented in the Suez Canal Economic Zone have provided approximately 80,000 direct and indirect job opportunities, outcomes that support the goals of empowering youth and achieving social balance.
Security and Stability: The Key to Attracting Investment
For years, Sinai has faced serious security challenges related to the spread of terrorism and armed violence. However, the Egyptian state has succeeded in achieving tangible progress in security and stability, which has paved the way for the implementation of development projects. Security here is not merely a political requirement; it is a prerequisite for any sustainable economic development. Attracting foreign and domestic investment depends primarily on the stability of the region and its ability to provide a safe environment for investment and production.
Challenges Awaiting Solutions
Despite its significant potential, Sinai still faces challenges that pose a challenge to any development project. The scarcity of water resources poses a real challenge to agricultural and industrial expansion, requiring massive investments in desalination technologies and efficient water resource management. Climate change poses another challenge, as some regions are exposed to climate changes that threaten agricultural and tourism activities. This requires the adoption of adaptive policies and the implementation of sustainable agricultural systems that can withstand changing environmental conditions.
Environmental Preservation: The Road to the Future
Policymakers must ensure that all projects implemented in Sinai are based on sustainability principles, so that economic activities do not deplete natural resources. Adopting environmentally friendly practices across all sectors, particularly in tourism, agriculture, and industry, will have a significant impact on achieving sustainable development that takes future generations into account. Furthermore, development projects as a whole must take into account local realities and include “adapted” and sustainable solutions that are aligned with the needs and context of the region and serve the population.
Can Sinai be an economic game-changer?
Given the enormous potential that Sinai holds, the most important question remains: can this region transform into an economic lever that extends beyond Egypt’s borders and plays a pivotal role in the global economy? Sinai cannot be viewed simply as a geographical area with natural resources, but rather as an opportunity to redefine the concept of economic development.
This transformation requires more than just investments in infrastructure; it calls for a strategic vision based on innovation and advanced technology to support Sinai’s transformation into a “global laboratory” for testing solar energy generation solutions, sustainable agriculture, and the clean technology industry.
Achieving this requires thinking outside the box and adopting innovative economic models that require a shift in vision and strategy, as well as a political will focused on creating an environment that encourages innovation and embraces environmental and economic challenges. Sinai’s true success will not be measured solely by its ability to attract investment, but rather by its ability to offer a new model for border region development—one that relies on creative thinking to bring about sustainable change that serves national goals and the population.
