When the Sinai peninsula was returned to Egypt, Ras Muhammad was declared for protection from fishing and other human activities. Some of the fishing methods, such as using dynamite and knives aslo were impacting the coral reef and the fish populations. In 1983, the Egyptian Environmental Affairs Agency (EEAA) established the area as a marine reserve for the protection of marine and terrestrial wildlife.
the park was also established to protect against urban sprawl from Sharm el-Sheikh and other coastal development. The name literally means "Mohammad's Head", where "head" in this instance means "headland".
Ras Mohammed encompasses two islands, Tiran and Sanafir. Tiran Island is located approximately 6 km offshore from the Sinai Peninsula. Underwater caves formed as the result of earthquakes are located in Ras Mohammad.