Ahmed Kamel – Egypt Daily News
Credit rating agency Moody’s described Egypt’s recently signed investment agreement with Qatar to develop the Alam El-Roum area on the country’s northwestern coast as a “significant credit-positive event,” saying it will strengthen Egypt’s economic stability and support its sovereign rating over the medium term.
According to Moody’s, the $29.7 billion project signals renewed confidence in Egypt’s investment environment and could play a key role in easing the nation’s external financing pressures. The agency noted that sustained inflows of foreign direct investment (FDI) would help stabilize the Egyptian pound, bolster investor sentiment, and lower the government’s borrowing costs, ultimately improving Egypt’s debt-carrying capacity, even though that capacity remains relatively weak at present.
Moody’s added that large-scale investment inflows such as the Alam El-Roum deal are essential for mitigating macroeconomic risks, boosting foreign currency reserves, and reducing the financing challenges that have weighed on Egypt’s economy in recent years.
The landmark agreement, signed between Qatar’s Al Diar Real Estate Company and Egypt’s New Urban Communities Authority (NUCA), involves the development of a massive mixed-use coastal project spanning approximately 4,900 acres and extending over 7.2 kilometers along the Mediterranean. The Qatari company will pay $3.5 billion for the land and invest an additional $26.2 billion in construction and development.
The Alam El-Roum project, located near Marsa Matrouh, will be built over 15 years and aims to create a fully integrated urban community featuring residential zones, commercial centers, and luxury tourism facilities. Around 60% of the site will be dedicated to residential units, while the remainder will include entertainment areas and world-class hotels offering approximately 4,500 rooms.
Sheikh Hamad bin Talal Al Thani, Head of Development and Projects for Asia and Africa at Al Diar, said the first phase representing about 20% of the project’s total area is scheduled to begin in 2026. He emphasized that the project aligns with Qatar’s strategy to expand its international real estate footprint and deepen economic partnerships across Africa.
Economic analysts view the agreement as a strong signal of renewed Gulf investment confidence in Egypt, particularly in the country’s North Coast region, which has attracted growing attention from regional investors in recent years. The deal is also seen as a cornerstone in Egypt’s broader plan to attract long-term FDI to support foreign reserves, generate employment, and diversify sources of hard currency income beyond tourism and remittances.
For Egypt, the Alam El-Roum partnership with Qatar represents not just a major development venture but also a strategic milestone, one that may help reinforce the country’s fiscal resilience, strengthen its balance of payments, and provide much-needed momentum for sustained economic recovery.
