Egypt is moving forward with its New Administrative Capital (NAC), a multi-billion-dollar mega city project meant to reduce pressure on Cairo and become the country’s new political and economic centre. Located about 45 kilometres from Cairo, the project has seen progress since it began in 2016. As of 2025, the city hosts over 14 federal ministries, houses about 48,000 civil servants, and is home to the Iconic Tower—Africa’s tallest building at almost 400 metres high. However, only about 10,000 residents currently live there.
Despite these milestones, many critics are not convinced. They say the $58 billion budget is too much for a country facing economic hardship and high inflation. They argue that the government should focus on repairing Cairo’s existing infrastructure instead of building a brand-new city. Others worry that the project will benefit only the rich, while average Egyptians continue to suffer poor services and high living costs.
The massive city is expected to cover 700 square kilometres when completed. Plans include residential districts, a diplomatic area, schools, hospitals, churches, mosques, cultural venues, solar farms, parks, and even artificial lakes. One of the biggest attractions is the planned “Green River Park,” which is set to be six times bigger than New York’s Central Park.
China State Construction Engineering Corporation (CSCEC) is the main contractor in charge of the central business district (CBD). It has also been given the responsibility of managing services like security, cleaning, utilities, and maintenance. The company is working under a build-operate-maintain model, with funding mostly from Chinese banks, including a $2.2 billion loan from China Exim Bank.
Eighty-five percent of funding for the CBD comes from Chinese financiers. This heavy dependence on foreign funding has sparked concern among observers who say Egypt could face long-term debt challenges. Despite these concerns, some investors have shown interest. For instance, the African Export-Import Bank (Afreximbank) has pledged $32 million for its regional headquarters in the diplomatic quarter.
Supporters of the NAC project believe it will boost Egypt’s global image, attract investment, and bring in new technologies. They argue that the city’s “smart” infrastructure and future-focused design could help tackle overcrowding and modernise the country’s civil service system. They also hope it will become a model for similar developments in other parts of Africa.
However, some urban experts have raised doubts. They point out that Egypt has attempted similar satellite city projects in the past, many of which failed to attract residents due to lack of jobs, poor planning, and affordability issues. Critics warn that NAC could end up as another “ghost city” if it does not offer affordable housing, reliable public transport, and accessible services.
Political commentator David Hundeyin has noted that large African infrastructure projects often face scepticism at first, but some, like Angola’s Kilamba City, eventually prove successful. Still, there are concerns that NAC may become a luxurious enclave for the elite, while Cairo’s millions continue to live in poor conditions.
Government officials have said the second phase of construction will begin in 2026. They maintain that the project is not just about prestige but about creating a future-ready capital that reflects Egypt’s ambitions. Whether this dream becomes reality remains to be seen.
Observers say the success of NAC will depend on whether it can provide jobs, housing, and basic services for ordinary people—not just infrastructure for government offices and foreign investors. The coming years will be crucial for determining whether the NAC becomes a true capital for all Egyptians or a symbol of misplaced priorities.
