Taba: A New Port on the Red Sea

by Sebastien GOULARD

The Port of Taba and the Development of the Sinai Peninsula

In January 2025, Egyptian President Abdel Fattah el-Sisi approved the construction of a new port in Taba on the Red Sea. The Egyptian leader’s ambition is to transform this port into a new maritime hub. Located in the South Sinai Governorate, near the Israeli border and just ten kilometers from the regional port of Eilat, the new Taba port is expected to cover nearly 220,500 square meters, making it one of Egypt’s key gateways to the world.

Currently, Taba only hosts a marina capable of accommodating leisure and cruise boats. The Suez Canal Company is expected to be entrusted with the port’s construction, with a budget of 4 billion Egyptian pounds (approximately 70 million euros). This new port is set to become a cornerstone in the development of the Sinai Peninsula, complementing other planned infrastructure projects in the region.

In 2024, the railway line linking Al-Fardan to Bir al-Abda in the northern part of the peninsula was reopened after nearly 50 years of closure, thanks to improved relations with Israel and the return of regional security. Earlier in the 2020s, new roads and tunnels were built across the peninsula to promote economic revitalization. Additional projects aimed at strengthening connectivity between the Taba port, the Sinai region, and neighboring Red Sea countries are expected in the near future.

The Challenges Facing the New Port

However, in order to transform Taba into a true regional hub, the Egyptian government will have to overcome several challenges that could slow down the project

Strengthened Regional Cooperation

First, the Taba port is located in a relatively competitive environment, near Israel’s Eilat port, Jordan’s Aqaba port, and the new Saudi city of NEOM. Without coordination among these countries, the Egyptian project cannot advance efficiently. Each infrastructure must specialize and define its role in order to create a unified financial and logistics destination in the region.

Currently, tensions stemming from the Israeli-Palestinian conflict hinder real regional cooperation, as evidenced by the delays in the India-Middle East-Europe Corridor (IMEC) project. Good relations between Cairo and Riyadh are essential to the project’s success, as both parties share a common interest in developing their Red Sea coastlines. In June 2025, plans were confirmed to build a bridge-tunnel linking southern Sinai (near Sharm el-Sheikh) to Tiran Island and the Saudi coast.

The two countries have moved closer together, as highlighted by Egyptian government spokesperson Mohamed al-Homsany in May 2025. Economic ties are strengthening, with significant investments from Saudi companies in Egypt’s industrial sector. Politically, however, relations remain fragile, particularly as the influence of Arabian Peninsula states—chiefly Saudi Arabia—is growing at Egypt’s expense.

Security in the Middle East: A Major Concern

The resurgence of the Israeli-Palestinian conflict following the terrorist attacks of October 7, 2023, has strained Israeli-Egyptian relations. Although President el-Sisi recently celebrated the “decade of peace” between the two nations—potentially a model for the region—the Egyptian public remains divided, with part of the population supporting the people of Gaza. To ensure the success of the Taba port, the Egyptian authorities will need to continue their conciliatory approach toward Israel and seek new avenues of cooperation.

Since Taba is located just a few kilometers from Eilat, coordinated activities between the two ports will be essential to identifying complementarities. In this tense Middle Eastern context, the U.S. administration should encourage regional projects that promote cooperation and investment. The new Taba port could mark an initial step toward broader collaboration among Red Sea nations.

The development of the Taba port also depends on the continuation of security measures in the Sinai region. The peninsula was long plagued by terrorist attacks carried out by Islamist groups between 2011 and 2023, which hampered regional development. Although President el-Sisi declared the end of terrorism in North Sinai in January 2023, ongoing Middle East tensions—particularly the Israeli-Palestinian conflict—could reignite security risks in Sinai and deter investors. For now, Egyptian authorities have been successfully maintaining stability in the region.

Finally, the Israeli-Palestinian crisis has made Red Sea maritime routes less secure, with attacks on foreign commercial vessels by Yemen’s Houthi rebels. Although their capabilities have been diminished by U.S. and Israeli airstrikes, the recent escalation between Israel and Iran could further increase threats in the Red Sea. For President el-Sisi, restoring calm to the region is essential to pursuing his vision of developing the Taba port and the entire Sinai Peninsula into a major hub between the Middle East and Europe.