Sun Capital, a joint venture between the Saudi Arabia-based Fawaz Alhokair Group and Egypt's Palm Hills Developments, has announced plans to develop a new $2bn mixed-use project in the western Cairo suburb of 6th of October City.

The compound will be built over an area of 5.5 million square metres and will comprise residential units, a five-star hotel, shopping malls, recreational facilities, and green areas.

The project is expected to be completed in seven years and is part of Sun Capital's efforts to tap into Egypt's growing real estate market, which has seen increased demand for affordable housing and mixed-use developments in recent years.

“We believe that 6th of October City represents the next growth area in Cairo, and we are confident that this project will set a new standard for mixed-use developments in the region," said Walid Fawaz Alhokair, vice chairman of Fawaz Alhokair Group.

Sun Capital has already developed several large-scale projects in Egypt, including the Sun Capital compound in 6th of October City, which consists of more than 1,000 residential units and commercial spaces.

The new project aims to provide a comprehensive lifestyle experience for residents and visitors, with a focus on sustainability and green spaces. The developers have also promised to create job opportunities for locals and use local materials in the construction process.

Egypt's real estate market has been growing steadily in recent years, driven by government initiatives such as the "One Million Units" affordable housing plan and increased demand from the country's growing middle class.

According to a report by real estate consultancy Knight Frank, the government's new cities programme, which aims to create sustainable urban environments across the country, is also expected to drive demand for mixed-use developments.

The report noted that demand for mixed-use projects is expected to increase in the coming years, as developers seek to meet consumer demand for convenience and accessibility, while also addressing sustainability concerns and providing green spaces.

With its new $2bn mixed-use development, Sun Capital aims to position itself as a leader in Egypt's growing real estate market and contribute to the country's economic growth and development.