The project began in March last year and entails the construction of a 700 square kilometer city to accommodate a population of five million, with 210 kilometers of roads and 1000 mosques. The total cost is projected to be in the region of 45 billion dollars, and this is being funded largely by Chinese developers.
Incidentally, Egypt has attempted to build satellite towns around Cairo in the past but these were mostly unsuccessful and have basically turned into ghost towns, with all kinds of incentives failing to attract citizens to live there. Of course, a capital city will be different with many government personnel having no other option. I wonder what they'll call it? "Nasser" would be a popular choice, I imagine, though that seems unlikely. "Egypt City" or "Sahara City?"

It's not the first time something like this has been done in the world either, with Brasilia's construction in the central highlands in 1960 being one of the better-known examples. Canberra was also a purpose built capital, I believe, though that's going back over a century ago.