Egypt has allocated 59 billion Egyptian pounds ($1.2 billion) to housing and power projects in Sinai for 2025, a figure that masks a deeper imbalance between infrastructure investment and measurable outcomes on the ground.
The Central Agency for Reconstruction reported executing 52.143 billion pounds ($1.1 billion) in Sinai projects through 2025, with 19 billion pounds ($400 million) directed to North Sinai and 29.5 billion pounds ($620 million) to South Sinai. An additional 3.6 billion pounds ($76 million) funds developmental agglomerations, while 1.428 billion pounds ($30 million) supports ongoing Bedouin housing extensions and 15.2 billion pounds ($320 million) finances four recent urban agglomerations in Rafah and Sheikh Zuweid, collectively targeting 6,047 fully serviced homes.
Water infrastructure remains a cornerstone of the strategy, with the East Qantara purification plant delivering 104,000 cubic meters daily via a 160-kilometer, 1,000-millimeter pipeline from the Nile to Rafah at a cost of 510 million pounds ($10.7 million). The Western Tunnel plant supplies South Sinai with 70,000 cubic meters per day through a 168-kilometer line costing 330 million pounds ($6.9 million), while two additional 104,000-cubic-meter-per-day facilities serve resettlement villages at 300 million pounds ($6.3 million) and 100 million pounds ($2.1 million) respectively.
Housing efforts have produced 2,619 Bedouin homes at 784 million pounds ($16.5 million), including 1,257 in North Sinai and 1,362 in South Sinai. Phase one of the developmental agglomerations added 1,145 homes at 1.9 billion pounds ($40 million), alongside 200 fisherfolk homes in Al-Gouzaiwan at 265 million pounds ($5.6 million). Meanwhile, 946 more Bedouin homes are under construction in future expansion zones at 1.428 billion pounds ($30 million).
The Ministry of Water Resources and Irrigation highlighted the Al-Bahr Al-Ahmar wastewater treatment plant as a regional linchpin, processing 5.6 million cubic meters daily — among the world’s largest agricultural water treatment facilities — with 88% of conveyance networks completed, enabling irrigation across 270,000 feddans in North and Central Sinai. Operate continues on 24 intake points along Sheikh Gabir Canal, 21 of which are operational, to irrigate 125,000 feddans, while electrical systems and trial operations proceed.
Beyond water, the ministry oversees 561 flood mitigation structures — dams, artificial lakes, and channels — protecting communities and harvesting rainwater for sustainable use in Bedouin settlements. Sixteen integrated development zones have been established across North and South Sinai, combining groundwater wells, farmland, housing, and essential services.
Urban renewal projects cited by Youm7 include commercial markets and parking facilities in Sheikh Zuweid, a service building in Bir al-Abd, vendor kiosks and service buildings throughout Sinai, a fish market in Arish, and extensive roadworks: flood protection and resurfacing in Abu Zanima, dualization of the Corniche–Moses Bath road in Tur Sinai, road widening from Martyrs’ Square in multiple cities, internal road development in Al-Tur and Dahb, port access improvements in Bur Said, square renovations in Arish and Dahb, and the expansion of Safety Road in Sharm El-Sheikh.
Despite the scale of spending, persistent gaps between announced projects and livable conditions remain evident in local testimonies and satellite imagery, particularly in North Sinai where security operations have historically disrupted construction timelines and access to basic services.
The timing of these investments coincides with the 44th anniversary of Sinai’s liberation, a symbolic moment the state uses to frame development as both a reward for endurance and a precondition for long-term stability — though critics argue that without concurrent political inclusion and economic opportunity, physical infrastructure alone may not reverse decades of marginalization.
How much of the 59 billion pounds is actually going to housing versus water and roads?
Approximately 1.9 billion pounds ($40 million) is allocated to the first phase of developmental agglomerations housing, 784 million pounds ($16.5 million) to 2,619 Bedouin homes, 265 million pounds ($5.6 million) to fisherfolk homes, and 1.428 billion pounds ($30 million) to ongoing Bedouin housing extensions — totaling about 4.377 billion pounds ($92 million) for housing. Water projects account for roughly 1.34 billion pounds ($28 million), while roads, electricity, and services consume the remainder of the 52.143 billion pounds ($1.1 billion) executed by the Central Agency for Reconstruction.

Why is South Sinai receiving more funding than North Sinai despite higher security needs in the north?
South Sinai’s 29.5 billion pound ($620 million) allocation exceeds North Sinai’s 19 billion pounds ($400 million) due to its focus on tourism-driven urban agglomerations in Rafah and Sheikh Zuweid, which require extensive utility networks and housing for projected population growth, whereas North Sinai’s investments prioritize foundational water and road rehabilitation amid ongoing security constraints that limit large-scale urban expansion.
What role does the Al-Bahr Al-Ahmar wastewater plant play in Sinai’s development strategy?
The plant treats 5.6 million cubic meters of agricultural wastewater daily — among the largest such facilities globally — enabling irrigation of 270,000 feddans in North and Central Sinai, directly supporting the state’s goals of food security and sustainable settlement by converting waste into a reusable resource for farming communities.
Are these projects creating jobs or primarily benefiting contractors and state entities?
While the sources detail housing units, water output, and infrastructure lengths, they do not specify employment figures, local hiring rates, or contract breakdowns, making it impossible to verify whether labor opportunities are reaching Sinai residents or concentrated among national firms and state-affiliated entities.