Ahmed Kamel – Egypt Daily News
Egypt has received an initial $3.5 billion payment from Qatar as part of a major agreement to develop a large-scale real estate and tourism project on the country’s Mediterranean coast, marking one of the most significant recent Gulf investments in the Egyptian economy.
The funds represent the cash portion of a broader development deal in Alam El-Rum, a coastal area west of Alexandria that has been earmarked for large-scale urban and tourism expansion. Mohamed El-Homsany, spokesperson for the Egyptian cabinet, confirmed the transfer in an official statement, describing it as the first phase of Qatar’s financial commitment.
A second component of the agreement will be delivered in kind rather than in cash, consisting of residential units within the project itself. Egyptian authorities estimate the value of this portion at approximately $1.8 billion, reflecting anticipated revenues from high-end housing and tourism-related properties once development progresses.
The deal builds on an agreement signed in November between Egypt’s New Urban Communities Authority and Qatari Diar, the real estate development arm of Qatar’s sovereign wealth fund. Under that agreement, the two sides committed to investing around $30 billion in transforming Alam El-Rum into a mixed-use urban destination, combining residential neighborhoods, tourism infrastructure, and commercial facilities.
The project is part of Egypt’s broader strategy to attract foreign direct investment, particularly from Gulf states, as it grapples with economic pressures including high inflation, foreign currency shortages, and the need to service external debt. Large-scale real estate developments along the Mediterranean and Red Sea coasts have become a central pillar of this strategy, offering investors long-term returns while allowing the government to secure much-needed hard currency.
Qatar’s renewed investment also reflects warming economic ties between Cairo and Doha after years of political tension earlier in the last decade. In recent years, Qatari entities have increased their exposure to the Egyptian market across sectors ranging from banking and energy to tourism and infrastructure.
Officials have framed the Alam El-Rum project as a catalyst for regional development, expected to create jobs, boost tourism revenues, and attract further private investment. While timelines for construction and completion have not been fully disclosed, the size of the financial commitment underscores the project’s strategic importance for both countries.
As Egypt continues to court foreign capital to stabilize its economy, Gulf-backed mega-projects such as this one are likely to remain at the center of its development agenda, reshaping parts of the country’s coastline while deepening economic interdependence with regional partners.
