Egypt has unveiled plans to invest $21bn in a huge tourist resort on the Mediterranean coast, business website Zawya reports.

The so-called “SouthMed” scheme will be developed by the government of Egypt and Cairo-based developer Talaat Moustafa Group (TMG) on a coastal site west of Alexandria.

Prime Minister Madbouly unveiled the scheme during a speech last week at Egypt’s New Administrative Capital.

He said the plan, in conjunction with the New Alamein resort and Ras Al Hekma, would attract millions oftourists and provide employment opportunities, “drawing young people to the region”.

Madbouly said the business case for the scheme predicts annual revenue of $33bn – about 7% of the country’s GDP – and the creation of 1.6 million direct jobs.

The vision is for a 23-sq-km resort complex with more than 2,000 hotel rooms and numerous residential units, all managed by international hotel brands.

The project will also have a marina and cruise terminal.

Speaking at the same press conference, Hisham Talaat Moustafa, the chief executive of TMG, said the development would have luxurious amenities and would be close to Alexandria and Alamein International Airport.

He said this would attract high-spending tourists from Europe and the Gulf.

Within 12 hours of the announcement, the project had made$1.25bn in off-plan sales, according to Zawya.