Housing minister Mustafa Kamel Madbuli said the new 70,000 acre city, east of Cairo, would take five to seven years to build at a cost of $45bn.
The yet-to-be-named city will spread out over 150 square miles, and could eventually be home to 7 million people, the developers and government announced Friday.
The Egyptian parliament and its government departments and ministries, as well as foreign embassies, would move to the new metropolis, he said.
“We are talking about a world capital,” he added.
Developers say the new city – the name of which has not been revealed – would include almost 2,000 schools and colleges and more than 600 health care facilities. They say the project will create more than a million jobs.