Sharm el-Sheikh is on a promontory overlooking the Strait of Tiran at the mouth of the Gulf of Aqaba. Its strategic importance led to its transformation from a fishing village into a major port and naval base for the Egyptian Navy. It was captured by Israel during the Sinai conflict of 1956 and restored to Egypt in 1957. A United Nations peacekeeping force was subsequently stationed there until the 1967 Six-Day War when it was recaptured by Israel and officially renamed Mifratz Shlomo, Hebrew for "Gulf of Solomon"; but the name "Sharm el Sheikh" or "Sharm" stayed in general use. Sharm el-Sheikh remained under Israeli control until the Sinai peninsula was returned to Egypt in 1982.
A hierarchical planning approach was adopted for the Gulf of Aqaba, whereby their components were evaluated and subdivided into zones, cities and centers. In accordance with this approach, the Gulf of Aqaba zone was subdivided into four cities: Taba, Nuweiba, Dahab and Sharm El-Sheikh. Sharm El-Sheikh city has been subdivided into five homogeneous centers namely: Nabq, Ras Nusrani, Naama Bay, Umm Sid and Sharm El Maya. Tourism industry in Sharm El-Sheikh is considered the core of development. The development in the city offers an exclusive world of luxury and elegance. A fantasy world of space and style is there comprising glamorous low density resorts, exclusive sports' facilities, unparalleled food courts and shopping centers. The land plan shows that the total area of Sharm El-Sheikh is expected to be about 42 km², in the year 2017. This area is designed to include:
Tourism resorts 8.4%
Tourism Facilities 40.9%
Green & Open areas 12.3%
Social Services 9.9%
Roads 12.2%
Urban Housing 13.7%
Bedouin Housing 1.6%
Hand crafts & small industries 1.0%
Before 1967, Sharm el-Sheikh was little more than an occasional base of operations for local fishermen; the nearest permanent settlement was in Nabk, north of Ras el-Nasrani ("The Tiran Straits"). Commercial development of the area began during the Israeli presence in the area. The Israelis built the town of Ofira overlooking Sharm el-Maya Bay, and the Nesima area, and opened the first tourist-oriented establishments in the area six kilometers north at Naama Bay. These included a marina hotel on the southern side of the bay, a nature field school on the northern side, diving clubs, a now well-known promenade, and the Naama Bay Hotel.
After the Sinai was restored to Egypt in 1982, the Egyptian government embarked on an initiative to encourage continued development of the city. Foreign investors - some of whom had discovered the potential of the locality during the Israeli occupation - contributed to a spate of building projects. Environmental zoning laws currently limit the height of buildings in Sharm el-Sheikh so as to avoid obscuring the natural beauty of the surroundings.
The city has played host to a number of important Middle Eastern peace conferences, including the September 4, 1999 agreement to restore Palestinian self-rule over the Gaza Strip. A second summit was held at Sharm on October 17, 2000 following the outbreak of the second Palestinian intifada, but it failed to end the violence. A summit was held on August 3, 2005 in this city on developments in the Arab world such as the situation in Iraq and the Arab-Israeli conflict.
Average temperatures during the winter months (November to March) range from 15 to 35 degrees Celsius and during the summer months (April to October) from 20 to 45 degrees Celsius. The temperature of the Red Sea in this region ranges from 21 to 28 degrees Celsius over the course of the year.