The Housing Ministry and Al Arabia Real Estate & Development (ARCO) entered into an agreement on Saturday to establish an amusement park with total investments of EGP 24 billion.
Housing Minister Mustafa Madbouli signed a memorandum of understanding on the project with the company's Deputy Chairman Mohamed Hassan El Sharbatly.
Prime Minister Ibrahim Mahlab attended the signing ceremony.
Under the agreement, the amusement park will be built on 2,800 acres of land, the minister said.
It will be the launching base for other developments in the western part of the northern coast of Egypt, the minister added.
The project is expected to include the largest artificial lake in the world, El Sharbatly said, adding, it will cover a space of 1.3 million square meters.
It will be handed over during four to eight years, he added.