Qatari Diar Confirms $29.7 Billion Investment in Egypt’s Mediterranean Mega Project

The agreement forms part of Qatar’s previously pledged $7.5 billion investment package to Egypt, which aims to bolster bilateral economic relations following the restoration of diplomatic ties between the two Arab nations.

Egypt Seeks Greater Gulf Cooperation

Egyptian authorities have continued to court Gulf investments amid fiscal challenges and growing foreign debt, viewing Gulf capital as key to stabilising the economy.

According to reports, the deal between Qatari Diar and Egypt’s New Urban Communities Authority involves $3.5 billion in land payments and $26.2 billion in-kind investments covering over 1,985 hectares of coastal land.

The Egyptian government confirmed that Prime Minister Mostafa Madbouly would oversee the signing of the Egyptian-Qatari partnership to develop the “Similla and Alam Al-Roum” area in Matrouh province.

Largest Qatari Investment Since Relations Restored

The $29.7 billion agreement represents the largest Qatari financial commitment to Egypt since the 2017–2021 diplomatic rift that had temporarily halted bilateral relations.

The project aligns with Cairo’s efforts to encourage long-term investment opportunities following structural reforms under the International Monetary Fund’s (IMF) extended financial program.

The IMF had delayed disbursements under its $8 billion loan package earlier this year, citing Egypt’s slow progress in securing promised Gulf investments by mid-2024.

Analysts noted that this development could unlock as much as $2.5 billion in pending IMF tranches once the deal is implemented.

Revenue Expectations and State Participation

Once completed, the Alam Al-Roum project is projected to generate an estimated $1.8 billion annually, with 15% of that revenue earmarked for Egypt’s New Urban Communities Authority after cost recovery.

Economic analysts said the agreement would serve as a benchmark for similar regional partnerships, signalling renewed investor confidence in Egypt’s coastal real estate market.

Bond traders responded positively to the announcement, as Egypt’s 2059 sovereign bonds rose to 86.92 cents on the dollar following news of the investment, reflecting investor optimism.

Qatari Diar Expands Regional Portfolio

Qatari Diar has previously developed major projects in Egypt, including the St. Regis Cairo hotel and the residential developments CityGate and NEWGIZA.

Industry observers said the new venture reinforces Doha’s long-term interest in strategic coastal infrastructure and luxury real estate markets across the Middle East and North Africa.

Comparable investments include the UAE-backed Ras El-Hekma development, which has drawn attention for its similar scale and tourism ambitions along the same Mediterranean corridor.

Regional Investment Competition Intensifies

Saudi Arabia’s Public Investment Fund has also explored potential projects on Egypt’s Sinai Peninsula, including at Ras Gamila near Sharm El-Sheikh, as part of its Vision 2030 diversification plan.

Experts believe Gulf investments of this magnitude could reposition Egypt’s Mediterranean coast as one of the region’s top tourism and investment destinations over the next decade.

Strategic Partnership for Regional Growth

Qatar’s investment policy increasingly focuses on long-term, high-value projects that align with its economic diversification goals and regional cooperation strategy.

By expanding into large-scale infrastructure ventures like Alam Al-Roum, Qatari Diar aims to consolidate its influence in regional real estate development.

Egyptian officials said the collaboration would strengthen economic ties between Cairo and Doha, contributing to sustainable development and cross-border partnerships in the Arab world.

The deal also supports Egypt’s broader plan to attract foreign currency inflows and stabilise its financial position amid rising global inflation pressures.

Qatari Diar’s decision underscores renewed confidence in Egypt’s political stability and long-term economic outlook, analysts said.

Gulf Investment Wave Shapes Egypt’s Future

The Alam Al-Roum initiative is seen as part of Egypt’s evolving economic landscape, drawing Gulf investors eager to participate in new growth zones and tourism infrastructure.

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Market observers expect further announcements from Gulf entities in 2026, potentially expanding on the collaborative framework between Egypt and its Arab partners.

The landmark project demonstrates both nations’ shared ambition to transform the Mediterranean coastline into a premier global destination for investors and tourists alike.