Prime Minister Mostafa Madbouly lauded Egypt’s investment in new cities and major infrastructure projects, saying urban expansion is essential to accommodate population growth, ease congestion and create new centres of economic activity.
Addressing concerns over the cost of these projects and their economic and social returns, Madbouly said that the government was pursuing a long-term urban development strategy while continuing to upgrade existing cities, improve rural services and expand affordable housing.
He made these remarks on Tuesday during a session on urban development on the second day of Egypt Forum 2026, held from October 19 to 24 under the slogan “A Look at Today, a Vision for Tomorrow” under the auspices of President Abdel Fattah El-Sisi.
Madbouly said Egypt had long faced the challenge of concentrating most of its population in a small area along the Nile Valley and Delta. The country’s population grew from fewer than 10 million at the beginning of the 20th century to around 18 million in 1952, before reaching approximately 110 million today.
From the 1970s onwards, rapid urban growth contributed to the spread of informal settlements, the loss of agricultural land and mounting pressure on public services. Egyptian cities also experienced high population density and severe congestion.
Long-term plan drives construction of new cities
Madbouly said successive governments had recognised the need to expand beyond the Nile Valley and Delta and develop desert areas. Former president Anwar Sadat began the establishment of new cities in the late 1970s, despite criticism that public investment should instead focus on improving services in existing urban centres.
By 2014, Egypt had established 22 new cities, including 10th of Ramadan, Sadat, 6th of October, Obour, Shorouk and New Cairo. These developments helped accommodate population growth and supported industrial expansion.
The current strategy is based on Egypt’s National Urban Development Plan through 2052, which was prepared by Egyptian experts before the 2011 revolution and completed in early 2012. Madbouly said President Sisi reviewed the plan before taking office and decided to proceed with its implementation.
The plan includes building 39 new cities, with work completed or under way in 27, while the remaining 12 are planned for the coming period.
Based on electricity meter data, Madbouly estimated that 14 million to 15 million people now live permanently in the new cities. More than 3.3 million residential electricity meters have been installed, alongside over 350,000 commercial, industrial and administrative meters.
He cited New Cairo, with nearly three million residents, and 6th of October City, with around two million, as examples of how these developments have grown into major urban centres.
The prime minister said these cities were intended to serve both current and future generations by providing places to live, work and invest.
The New Capital
Addressing questions about the New Capital, Madbouly said it was part of the broader programme to establish new cities, with the relocation of ministries and the seat of government being its main distinguishing feature.
He noted that moving government headquarters was not unprecedented. Central Cairo had developed into the country’s administrative centre during the reign of Khedive Ismail in the 19th century, replacing the Citadel of Salah al-Din as the seat of government. The area subsequently served as the centre of government for nearly 150 years.
Madbouly said urban planners had discussed relocating ministries away from central Cairo since the 1990s. Experts had also examined five potential sites for the new capital before selecting its current location.
He warned that Cairo’s worsening congestion carried substantial economic costs. Citing a World Bank study, he said traffic conditions had been projected to deteriorate severely, while vehicle speeds in some areas had fallen to between eight and 10 kilometres per hour.
He estimated that congestion costs Egypt between $8 billion and $10 billion annually through pollution and excessive fuel and electricity consumption.
North Coast development
Madbouly said the government was seeking to unlock the economic potential of the North Coast by providing permanent cities with tourism, industrial and service activities.
He argued that the earlier focus on seasonal resorts had limited the region’s potential, as many operated for only two months a year. The new strategy aims to extend activity to six months and eventually throughout the year.
He said the New Alamein area had previously been affected by extensive minefields. The government now aims to transform it into an integrated development area, and the city attracted one million tourists this year, he added.
Responding to concerns that new cities had taken priority over existing urban areas, Madbouly said the government had redeveloped more than 350 unsafe areas nationwide, improving living conditions for over 350,000 families, or more than 1.5 million people. He also highlighted efforts to upgrade historic and Islamic Cairo.
