The city that serves as the capital of Egypt's Sinai Peninsula is Sharm El Sheikh. This city is known for its spectacular coastal resorts and as a popular tourist destination, particularly for diving and water sports in the Red Sea. Sharm El Sheikh has developed into a significant economic hub for tourism in Egypt, attracting visitors with its stunning coral reefs and vibrant marine life. Its convenient location near historic sites like Mount Sinai adds to its allure for travelers interested in both leisure and history.