Qatari Diar, the real estate arm of Doha’s sovereign wealth fund, plans to invest $29.7 billion in a luxury development featuring marinas, golf courses, and upscale residential areas along Egypt’s Mediterranean coast, according to a source with direct knowledge of the deal, Reuters.
The project aims to transform Alam Al-Roum, a 7-kilometer (4.4-mile) stretch of undeveloped coastline located about 480 kilometers northwest of Cairo, into a vibrant year-round destination.
The development will include luxury neighborhoods, schools, universities, and government facilities, and is designed to attract both local and international visitors.
For years, Egypt has been seeking foreign investment, particularly from wealthy Gulf states, to help ease its mounting foreign debt and close a significant budget deficit.
The planned project marks the largest Qatari investment in Egypt since diplomatic relations between the two countries were restored following the 2017–2021 rift, when Egypt, Saudi Arabia, the UAE, and Bahrain severed ties with Qatar over accusations of supporting terrorism and maintaining close ties with Iran, allegations that Doha denied.
Under the agreement with Egypt’s New Urban Communities Authority, Qatari Diar will pay $3.5 billion for the land and contribute an additional $26.2 billion in in-kind investment to develop the project, which will span approximately 1,985 hectares (4,900 acres), the source said.
A communications firm representing Qatari Diar did not immediately respond to a Reuters request for comment or confirmation.
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The Egyptian government has invited reporters to attend a ceremony on Thursday, where Prime Minister Mostafa Madbouly is expected to witness the signing of an Egyptian-Qatari partnership deal to develop the “Similla and Alam Al-Roum” area in Matrouh province.
This agreement forms part of a wider $7.5 billion investment pledge Doha made earlier this year and could unlock around $2.5 billion in pending disbursements under an $8 billion financial support package that Egypt signed with the International Monetary Fund (IMF) in March 2024.
Two financial sources said the IMF had delayed its biannual review and subsequent disbursements because the Qatari investment, initially promised by June, had not yet materialized.
Following news of the deal, Egypt’s sovereign bonds, which had been trading lower earlier in the day, reversed course to gain up to 0.72 cents, with the 2059 maturity bid rising to 86.92 cents on the dollar.
The development is expected to generate annual revenues of at least $1.8 billion, of which 15% will go to the New Urban Communities Authority after Qatari Diar recoups its total investment, the source added.
Seen as a strategic counterpart to the United Arab Emirates’ Ras El-Hekma mega project, the Qatari investment aligns with Egypt’s broader goal of drawing Gulf capital to its North Coast and positioning the region as a leading Mediterranean tourism and investment hub.
Saudi Arabia’s Public Investment Fund has also been considering a land acquisition at Ras Gamila near Sharm El-Sheikh on Egypt’s Sinai Peninsula.
However, Saudi Tourism Minister Ahmed Al Khateeb said last week that no decision had yet been made and that the kingdom remained focused on developing its own domestic tourism projects.
Qatari Diar already holds several major assets in Egypt, including the St. Regis Cairo hotel and residences, as well as the CityGate and NEWGIZA residential developments located on the outskirts of Cairo.
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