Qatari Diar, the real estate arm of Qatar's sovereign wealth fund, will invest $29.7 billion in a luxury project including golf courses and marinas on Egypt's Mediterranean coast, a source with direct knowledge of the matter said on Wednesday.
This development aims to transform Alam Al-Roum, a 7-kilometer (4.4-mile) stretch of undeveloped coastline, about 480 km northwest of Cairo, into a permanent tourist destination that will attract visitors and include luxury neighborhoods, schools, universities and government facilities.
Egypt has been struggling for years to secure foreign investment, particularly from wealthy Gulf states, while facing high external debts and a deep budget deficit.
This development will be Qatar's largest investment in the country since the restoration of diplomatic relations following the 2017–2021 economic rift, when Egypt, Saudi Arabia, the United Arab Emirates and Bahrain severed ties with Qatar, accusing it of supporting terrorism and close ties to Iran — charges that Doha denied.
The agreement with the Egyptian New Urban Communities Authority includes a payment of $3.5 billion for the land and an in-kind investment of $26.2 billion for the construction of the project, which will span an area of 1,985 hectares (4,900 acres), the source said.
A communications company representing Qatari Diar did not immediately respond to Reuters' request for confirmation or comment.
The Egyptian government said in a statement to journalists that Prime Minister Mostafa Madbouly will witness on Thursday the signing of an Egyptian-Qatari partnership agreement for the development of the “Similla and Alam Al-Roum” area in Matrouh province.
The deal, which is part of a broader $7.5 billion investment pledge that Doha has made this year, could help unlock about $2.5 billion from an $8 billion financial support package that Egypt signed with the International Monetary Fund in March 2024.
The lack of a Qatari investment, which Egypt had promised the IMF would materialize by June, was the main reason why the IMF suspended disbursements during the six-month review, two financial sources said.
Egypt's sovereign bonds, which had fallen earlier in the day, rose as much as 0.72 cents, with the 2059 maturity reaching 86.92 cents on the dollar.
The development is expected to generate annual revenue of at least $1.8 billion, 15% of which will go to the New Urban Communities Authority once the company has fully recovered its investment cost, the source said.
The Qatari investment is seen as a strategic counterweight to the UAE project in Ras El-Hekma and as part of Egypt's broader efforts to attract capital from the Gulf to the North Coast and transform the region into a Mediterranean tourism and investment hub.
Saudi Arabia’s Public Investment Fund is also considering buying land in Ras Gamila, near Sharm El-Sheikh in Egypt’s Sinai Peninsula. The Saudi tourism minister said last week that the kingdom has not yet made a decision on such an investment and is currently prioritizing the development of new tourism projects within the country.
Currently, Qatari Diar's properties in Egypt include the St. Regis Cairo hotel and apartments, as well as the CityGate and NEWGIZA projects – planned residential developments on the outskirts of Cairo.
Reporting by Andrew Mills in Beirut; additional reporting by Patrick Werr, Momen Saeed Attallah in Cairo and Libby George in London; editing by Jan Harvey, Kim Coghill and Emelia Sithole-Matarise – Reuters
