CAIRO - Shares of Egyptian real estate firms Emaar Misr for Development and Talaat Moustafa surged on Monday after reports they were negotiating to acquire large tracts of land for tourist developments on Egypt's Mediterranean coast.

Reports in Egyptian media said Emirati businessmen were involved in a multi-billion-dollar project to develop largely virgin land on the Ras El Hikma peninsula 200 kms (124 miles) west of Alexandria.

Emaar Misr shares rose 8.37% to 5.31 Egyptian pounds after jumping 19.8% on Sunday.

"Emaar Misr's shares have soared based on a rumour that they will develop the Ras El Hikma area," said Osama Mourad, a stock market analyst and CEO of MPower Investments.

The project would be worth some $22 billion and be carried out in coordination with the ministry of housing, according to a report in al-Youm al-Sabi' newspaper. Cairo24 newspaper said no deal had yet been signed.

It was unclear whether that amount would be the cost of the land or total targeted investment.

Neither Emaar nor the tourism ministry immediately responded to requests for comment.

Talaat Moustafa Group Holding meanwhile said in a disclosure to Egypt's stock exchange that it was evaluating a project to develop 5,540 feddans (23.3 square kilometres) of land, also on the Mediterranean coast. Its shares rose 10.3% on Monday to 37.50 pounds.

The project "was among various other potential projects" the group was looking at, the disclosure said. "We will provide updates once executive procedures in any of those projects commence."

Egypt promised to sell state assets to help finance heavy foreign debt repayments coming due this year and make space for the private sector, part of a $3 billion finance support package it signed with the International Monetary Fund in December 2022.

(Reporting by Patrick Werr; Additional reporting by Hadeel Al Sayegh in Dubai, editing by Emelia Sithole-Matarise)