The major reason for the new capital city is to relieve congestion in Cairo, which is already one of the world's most crowded cities, and it is growing rapidly. Greater Cairo's population is set to grow from 18 million people to 40 million people by 2050. It will help to strengthen and diversify the country's economic potential by creating new places to live, work and visit. In order to draw people to this new capital city, a series of key catalyst developments will be established at its core. This will include a new government administrative district, a cultural district and a wide variety of urban neighborhoods.
The new city is to be located 45 kilometers (28 miles) east of Cairo and just outside the Second Greater Cairo Ring Road in a currently largely undeveloped area halfway to the seaport city of Suez. According to the plans, the city would become the new administrative and financial capital of Egypt, housing the main government departments and ministries, as well as foreign embassies. On 700 square kilometers total area, it would have a population of almost seven million people. The city is planned to consist of residential districts, artificial lakes, educational institutions, hospitals and clinics, mosques, 40,000 hotel rooms, a major theme park, 91 square kilometers of solar energy farms, an electric railway link with Cairo, and a new international airport. It will be built as a smart city. It is planned also to transfer the parliament, presidential palaces, 18 ministries and foreign embassies