A new capital in Egypt

Egypt is getting a new capital - courtesy of China

Egypt's new capital city moved a step closer to reality with the announcement that Chinese developers will largely fund the megaproject.

The China Fortune Land Development Company (CFLD) agreed to provide $20 billion for the currently unnamed city, after a meeting between heads of the firm and Egyptian President Abdel Fattah El Sisi.

This follows a previous commitment of $15 billion from another Chinese state-owned company, bringing the project close to its $45 billion budget requirements for phase I.

Plans for the new capital were first announced in March 2015. Government officials described the development as a solution to crowding, pollution and rising house prices in Cairo.

"Cairo Capital is a momentous endeavor to build national spirit, foster consensus, provide for long-term sustainable growth," said the project website. "(The) new city will create more places to live, work and visit."

Model of the new city on display in Sharm El Sheikh.

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