The female tourist, had to have her left arm amputated after she was bitten while swimming with a friend.
She was rescued from the sea unconscious and was taken to hospital. Her condition was later described as ‘stable’.
Swimmers at Dahab’s Laguna Beach initially confused a shark for a tuna.
The attack at the Dahab resort, approximately 36 miles north of Sharm el-Sheikh, beachgoers swiftly exited the water.
Despite reported sightings, a two-hour search using harpoons proved unsuccessful in locating the shark. As a result of the attack, authorities closed the beach in south Sinai.
A shark had been seen in waters off the Egyptian resort of Dahab in August, which led to a temporary ban on swimming at the time but it had since re-opened.
This recent attack on the woman comes after a June incident in which 23-year-old Russian tourist Vladimir Popov was fatally mauled by a tiger shark in Hurghada.
There is speculation that the same predator may have been responsible for fatal attacks on tourists a year earlier.
Tourists watched in horror from the shore as the beast wounded the man before dragging him under the water. His distraught girlfriend managed to escape.
The tourist was on a long stay in Egypt and had moved to a resort with his father several months ago.
His father witnessed the tragic attack in shock, and the incident was also captured on film from the shore.
In July of the previous year, a distressing incident occurred when 68-year-old Austrian Elisabeth Sauer was attacked, merely 15 minutes after English-speaking guests had alerted Egyptian lifeguards about the presence of sharks.
Tragically, another woman, identified as a Romanian national in her 40s, is believed to have suffered a similar fate, losing her life in an attack just 650 feet away from where Sauer tragically perished. Her severely disfigured remains were discovered on a nearby reef on the same day.