The Jumeirah Bay Ras el-Hekma project, which will be built across 6 million square metres, will cost up to $1.6bn, according to a company statement.
According to the statement, the project will consist of three phases. The first phase of the project will consists of 980 units and will be completed by 2019.
The masterplan is expected to be announced shortly.
The government has been keen on encouraging the private sector to continue developing tourism projects in the north coast area, which has historically attracted local tourists.
A statement from the ministry added that in the next fiscal year, 2016/17, it is prepared to earmark the amount from the state budget to develop the tourism project.
Located on the north coast, west of Egypts second largest city, Alexandria, El-Alamein city will consist of a downtown retail area as well as some residential developments. Full details of the project have not been released.
Sources close to the project have told MEED that the authorities will be approaching the private sector soon after all the infrastructure work has been completed.