Ahmed Kamel – Egypt Daily News
Qatar’s state-owned real estate developer, Al Diar, plans to sign a partnership agreement with Egypt’s New Urban Communities Authority to invest $29.7 billion in developing a massive tourism and real estate project along the country’s North Coast, according to reports by Reuters. The project underscores the deepening wave of Gulf investment flowing into Egypt’s property and tourism sectors amid the country’s efforts to stabilize its economy and attract foreign capital.
Under the agreement, Al Diar will pay $3.5 billion for the land located in the Alam El-Roum area east of Marsa Matrouh and contribute a further $26.2 billion in in-kind investments to build the resort complex, which will span 4,900 acres (nearly 20 square kilometers) and stretch over 7.2 kilometers of pristine Mediterranean coastline.
Al Diar is a subsidiary of the Qatar Investment Authority (QIA), the Gulf state’s sovereign wealth fund. According to Bloomberg, the project will include luxury hotels, residential properties, golf courses, and entertainment venues designed to attract both regional and international visitors. The partnership agreement between the QIA subsidiary and the Egyptian government is expected to be formally signed on Thursday.
A Strategic Expansion of Gulf Investments
This major Qatari venture comes roughly a year after Egypt and the United Arab Emirates launched the $35 billion Ras El Hekma development, one of the country’s largest-ever foreign investment projects. That deal granted Abu Dhabi’s ADQ Holding development rights to the Ras El Hekma area, located about 50 kilometers east of Alam El-Roum, in exchange for $24 billion earmarked for project development and a 35% equity stake retained by the Egyptian government.
Both projects reflect a wider trend of intensifying Gulf investment in Egypt’s lucrative North Coast, a region historically known for its golden beaches and elite summer tourism but now being reimagined as a year-round international destination.
According to a report by the real estate consultancy Knight Frank, high-net-worth investors from the Gulf—led by Emiratis and Saudis plan to invest $1.1 billion in second homes in Egypt by 2025, further boosting demand for coastal real estate and luxury tourism infrastructure.
Reviving Tourism and the National Economy
The Egyptian government views such large-scale foreign investments as critical to achieving its target of attracting 30 million tourists annually by 2031, while also generating much-needed foreign currency inflows. The country continues to recover from one of the most severe foreign exchange crises in its modern history, which forced multiple currency devaluations and sparked inflationary pressures.
The Qatari deal, if finalized, is expected to significantly strengthen Egypt’s balance of payments and help unlock further tranches of its $8 billion Extended Fund Facility with the International Monetary Fund (IMF). The IMF has delayed its final program reviews pending progress on Egypt’s commitment to privatization and reducing the state’s dominance in the economy. Analysts say that a major agreement with Qatar could serve as a key confidence boost, paving the way for the release of an additional $2.5 billion in IMF funds.
Saudi and Regional Interest in Egypt’s Coasts
Beyond the North Coast, Saudi Arabia is also stepping up its involvement in Egypt’s tourism sector. In April, Ajlan & Bros Holding Group announced plans to invest $1.5 billion in tourism projects along the Ras Jamila area overlooking the Red Sea, according to sources cited by Asharq Business.
Meanwhile, Egypt’s Housing Minister Sherif El Sherbiny revealed that the government is finalizing an investment plan for the Ras Banas peninsula one of the Red Sea’s most ecologically rich regions, aimed at offering development opportunities to private investors. Ras Banas, known for its pristine coral reefs and historic Port of Berenice, extends some 50 kilometers into the Red Sea and is being positioned as the next frontier for high-end sustainable tourism.
Economic Context and Outlook
Egypt has intensified efforts to attract foreign direct investment (FDI) as part of its economic reform agenda, which prioritizes private-sector empowerment, fiscal stability, and external debt reduction. The government aims to secure $42 billion in FDI during the 2025–2026 fiscal year, which began in July.
For Cairo, the Qatari investment marks not only a deepening of Arab economic partnerships but also a significant signal to international markets that investor confidence in Egypt’s long-term potential is returning.
The Alam El-Roum project named after a nearby Roman-era fortress could become a flagship of that recovery: a vast, world-class coastal destination symbolizing both Egypt’s modern economic ambitions and the Gulf’s enduring appetite for strategic investments along the Mediterranean and Red Sea shores.
