Saudi in talks over $4bn Egypt tourism project

A Saudi businessman is in talks with Egyptian authorities over a US$4 billion tourism resort in Egypt's Red Sea region of Sharm el-Sheikh.

Egyptian tourism minister Hisham Zaazou has confirmed a Saudi businessman is in talks with Egyptian authorities over a $4 billion tourism resort in Sharm el-Sheikh, according to local reports.

The project would be the largest resort in the Red Sea destination, however the minister did not elaborate on what stage these talks were at.

Egypt's tourism sector has experienced hardship from recent political instability, and the more recent Russian airliner crash flying out of Sharm al-Sheikh on October 31.

Saudi Arabia, along with Kuwait and the United Arab Emirates, has invested billions of dollars to support Egypt's economy and maintain stability since 2011.

The current investment plans are to make up for the loss of international business by encouraging local tourism, largely from wealthy Gulf Arab visitors.

Approximately 450,000 Saudi tourists visited Egypt until 30 November of this year, according to statistics, compared to 400,000 last year.

Saudi Arabian Airlines (Saudia) plans to increase the frequency of its flights from the kingdom to the Egyptian Red Sea resort of Sharm el-Sheikh from February 2016.