Qatari Diar, the real estate investment arm of Doha’s sovereign wealth fund, is preparing for a colossal investment in Egypt. The firm is set to commit a massive $29.7 billion toward a new luxury development.
This complex, planned for Egypt’s Mediterranean coast, will include facilities like golf courses and marinas. An informed source confirmed this agreement on Wednesday.
The primary aim of the project is to convert an undeveloped 7-kilometer stretch of coastline. This area, known as Alam Al-Roum, is located 480 km northwest of Cairo.
It will be transformed into a year-round tourist hub. Beyond resort facilities, the complex will feature luxury residential neighborhoods, universities, schools, and government administrative buildings.
Largest Investment Since Diplomatic Thaw
Egypt has been aggressively seeking large foreign investments. This is particularly true from affluent Gulf states. This national drive aims to alleviate the country’s significant foreign debt obligations. It also seeks to reduce a substantial budget deficit.
This project is poised to become the largest single Qatari investment in Egypt’s history. It follows the restoration of diplomatic relations between the two countries. Ties had been severed during an economic rift that occurred between 2017 and 2021.
Investment Structure and Scope
The agreement was finalized with Egypt’s New Urban Communities Authority. The financial arrangement clearly outlines the investment breakdown:
- Land Payment: A payment of $3.5 billion is designated for the land acquisition.
- In-Kind Investment: An additional $26.2 billion will be provided as an in-kind investment. This funding will support the construction phase of the project.
The source confirmed that the development will span an expansive area of 1,985 hectares (4,900 acres). The Egyptian government extended invitations to reporters for a signing ceremony.
Prime Minister Mostafa Madbouly is expected to witness the signing on Thursday. This ceremony will confirm the Egyptian-Qatari partnership deal for the “Similla and Alam Al-Roum” development.
Crucial Support for Financial Stability
This agreement forms part of a broader $7.5 billion investment pledge that Doha committed to earlier this year. The realization of this major investment is essential for Egypt’s financial structure.
The project is expected to help unlock approximately $2.5 billion in funds. These disbursements are part of the larger $8 billion financial support package Egypt signed with the International Monetary Fund (IMF) in March 2024.
The failure to secure a promised Qatari investment was previously cited as the main reason the IMF had held up biannual disbursements.
The development is projected to generate annual revenue of at least $1.8 billion. After the company recoups its total investment cost, 15% of this revenue will be allocated to the New Urban Communities Authority.
North Coast Positioned as Mediterranean Hub
The Qatari investment is seen as a strategic countermeasure to a similar project led by the United Arab Emirates. This initiative aligns with Egypt’s comprehensive push to attract Gulf capital to its North Coast. The country aims to establish this region as a major Mediterranean investment and tourism hub.
Qatari Diar already has an established presence in Egypt. Its existing holdings include the St. Regis Cairo hotel and apartments.
It also owns planned residential developments on the outskirts of Cairo, such as CityGate and NEWGIZA.
Bird Flu Precaution: UK Orders National Indoor Housing for Poultry
