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Egypt shifting its capital from Cairo to a new city that China is building for it

Egypt is relocating its capital from Cairo to a new desert city, built and now operated by China. The New Administrative Capital, part of China's Belt and Road Initiative, reflects deepening Sino-Egyptian ties and aims to ease congestion in Cairo while modernising governance infrastructure. read more Egypt is formally shifting its capital from Cairo to a newly built city in the desert with China playing a central role in its construction and future operations. Located around 45 kilometres east of Cairo, the new administrative capital spans 700 square kilometres and is envisioned to house more than six million people. The project is part of Egypt's long-term effort to decongest Cairo and reposition itself as a modern administrative and economic hub. STORY CONTINUES BELOW THIS AD According to South China Morning Post, the central business district (CBD) of this new capital is being developed by the China State Construction Engineering Corporation (CSCEC), a state-owned Chinese firm. The company recently signed a protocol to operate and maintain the CBD, further deepening China's involvement in Egypt's infrastructure strategy. The agreement includes responsibilities ranging from property management to delivering integrated urban services for residents, businesses and tourists. The cost of building the CBD, which features government ministries, a presidential palace, parliament, foreign embassies, and high-end commercial infrastructure, is estimated at US$3.8 billion. Among its standout features is the Iconic Tower—Africa's tallest skyscraper at 385.8 metres, alongside ten office towers, five residential buildings, and four luxury hotels. The move also aligns with Beijing's Belt and Road Initiative, with Egypt serving as a strategic node linking Africa and the Middle East. China's presence in Egypt is expanding, especially around critical zones like the Suez Canal. More than 2,800 Chinese firms operate in the country across sectors such as manufacturing, construction and infrastructure, with total investments exceeding US$8 billion. Since 2023, over 30,000 Egyptian government employees have relocated to the new capital, which officially assumed the role of administrative seat following President Abdel Fattah al-Sisi's third-term inauguration. Commercial entities including banks, are also moving in, underscoring the city's growing economic significance. To ensure long-term sustainability, Egypt has implemented a 'cost-plus-margin' model for managing utilities in the new capital, maintaining government oversight while attracting international expertise. The model of having Chinese contractors not only build but also operate and maintain large-scale projects is gaining traction across Africa and appears to be a pillar of Sino-African collaboration. STORY CONTINUES BELOW THIS AD The new capital represents more than just a geographic shift, it signals a geopolitical realignment with China as a core partner in Egypt's transformation agenda.