Untapping Arish City’s Hidden Potential: A Jewel in North Sinai

Updated 7/11/2023 8:00:00 AM

Starting in 2014, the Egyptian government implemented massive security operations, in cooperation with tribal leaders, to defeat the terrorist groups and remove them from Sinai as a whole. These operations were supported by the country’s long-term political, social, and economic vision to develop Sinai, including Arish. This development strategy included enhancing the infrastructure and real estate as well as developing the Arish Port operations. Despite its potential as a tourist destination, Arish City has been subjected to several tourist groups’ activities over the past decade. During the past few years, it has been a challenge to develop the city’s potential as a part of the bigger plan to develop the North Sinai governorate.

Infrastructure Development

Egypt has been working on several giant development projects in North Sinai. These projects have been linked to the goal of reconstructing Sinai’s whole infrastructure and facilities at a time when the government is working to combat terrorism through development.

The number of development projects in the governorate is 152, and the value of public investments directed to the North Sinai governorate in the 2023/2022 plan amounts to EGP 7.9 billion, an increase of 27.4% over the 2022/2021 plan, according to a press release published by the Ministry of Local Development on July 1^st.

To ensure power stability in the North Sinai governorate, the country established a new power station with a capacity of 125 x 2 megawatts. The power station is set to completely cover the electricity needs of North Sinai, supply new development projects with electricity, and quickly interfere in minutes in the event of any emergency or maintenance in the lines feeding the governorate, according to Egypt’s Projects Map Website.

Moreover, the governate’s infrastructure development included enhancing roadways. Among the main axes to be established, Egypt completed the first axis, which includes Al-Fateh Street from the western gate at the entrance to Al Arish City all the way to the eastern entrance to the city at Al-Raisah along the coast. These developments are set to facilitate traffic, which will make tourist experiences better.

Within the activities of the visit of Minister of Planning and Economic Development Hala El-Said and Minister of Local Development Hesham Amna to North Sinai last May to follow up on the projects of the investment plan and to open a number of technology centers in the governorate, El-Said referred to developing the infrastructure in the Farma area (the path of the Holy Family), pointing to the state's efforts to revive tourism in the region through the camel racing project, which began in April 2023.

Additionally, the government developed several water distillation plants to secure the supply of clean water. These projects include the sea desalination plant in Arish City, which was established to operate with a capacity of 10,000 m3/day.

Arish Port Development

The Egyptian government is implementing a development project for the Arish Port, which is set to be completed in the first quarter (Q1) of 2024. The plan aims to transform the port from a small one into an internationally competitive one. Nirmeen El Sayyad, UN Women Project Manager at the American University in Cairo (AUC) and an Economic Expert, tells Arab Finance: "The Arish port has competitive advantages being the only port in North Sinai with access to the Mediterranean Sea. Improving the port will also serve the development of the governorate."

Upon completion, Arish Port will be able to receive large cargoes and handle black and white cement. Moreover, the port will deal with other important trade goods from Sinai destined for foreign markets, including salt, sand, and marble.

The port is going to offer a number of job opportunities in the governorate and support the development of the rest of North Sinai as well.

Developing the port is expected to boost the gross domestic product (GDP) of the North Sinai governorate. El Sayyad explains that “developing the port will have a positive impact on the income of the governorate through increased trade and traffic of shipments. We can see, for example, that Jebel Ali Port alone contributes 26.1% to Dubai’s GDP and Jebel Ali Free Zone contributes 23.8%, according to a study conducted by the Boston Consultancy Group (BCG) in 2019.”

After the developments, the port has become suitable for crop exportation, cargo, transit traffic, fishing activities, and different marine sports, according to the Maritime Transport Sector's website.

Promoting Tourism in Arish City

The development operations adopted by the governorate boosted tourism in North Sinai, especially in Arish City after the re-opening of Arish for local and global visits. El Sayyad says: “Developing the governorate of North Sinai will enhance the attractiveness of the governorate to more investments, including tourist-like investments. These will eventually increase the readiness and attractiveness of the city as a tourist destination.”

In April, the Arab camel racing championship held in Arish attracted local and international tourists to the city as a way to promote North Sinai.

After years of instability, hotel and chalet owners were able to develop their properties to receive guests, thanks to the stability established upon uprooting terrorist groups from North Sinai. After a visit to Arish earlier in 2023, Mahmoud Hosny, Member of the Union of Egyptian Archaeologists, also known as El Ra7al, tells Arab Finance: “The standard of the hotel I stayed in is somewhat acceptable compared to its price, but there are many other hotels of a very high level. These hotels offer many services; however, the prices they offer are a little higher but still reasonable to some extent.”

Hosny highlights the potential of Arish City as a tourist attraction, saying that “Arish is a city of extreme beauty, and I hope that the rest of the tourist attractions there will be open to the public, at which time they will compete with any other touristic city in Egypt.” Furthermore, Hosny adds: “I would like to visit Arish City again, and this time I hope that the closed tourist attractions will be opened to the public, so that tourism will return to Arish again after years of absence.”

Hence, after years of instability, the development projects in North Sinai have boosted the potential for Arish City as a tourist destination. Together with projects to enhance the Arish Port, flourishing tourism is expected to boost Arish City’s economic contribution to the governorate.

By Sarah Samir