Qatari Diar, the real estate arm of Qatar’s sovereign wealth fund, will invest $29.7 billion in a landmark coastal development on Egypt’s Mediterranean shore, marking one of the largest foreign real estate ventures in the country’s history.
The agreement, signed with Egypt’s New Urban Communities Authority (NUCA), signals renewed Gulf confidence in Cairo’s economy at a time when the government is urgently seeking external financing to address ballooning debt and a deep fiscal shortfall, according to a Reuters exclusive report.
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It also represents Qatar’s first major investment in Egypt since it pledged $7.5 billion earlier this year.
The project will transform Alam Al-Roum, an untouched stretch of coastline roughly 480 kilometres (300 miles) northeast of Cairo, into an upscale, year-round destination designed to attract international visitors.
The plans include luxury housing, golf courses, marinas, educational institutions, and public infrastructure, turning the remote site into a self-contained urban hub.
Boost for Egypt’s economy
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Under the terms of the deal, Qatari Diar will pay $3.5 billion for the land and commit an additional $26.2 billion in development investment. The project will cover about 1,985 hectares (4,900 acres) along 7.2 kilometres of Mediterranean coastline in Egypt’s Matrouh Governorate.
Once completed, the coastal city is projected to generate no less than $1.8 billion in annual revenue. NUCA will receive 15 per cent of that income after Qatari Diar has recovered its total investment.
