Egypt receives $3.5bn from Qatar in coastal development deal

Egypt has received $3.5 billion from Qatar as part of a deal to develop a mega real estate and tourism project in Alam El-Rum on the Mediterranean coast.

The payment is the cash portion of the deal, Mohamed El-Homsany, the official spokesperson for the Egyptian cabinet, said in a statement.

The second part will be an “in-kind” payment, consisting of residential units within the project, which is expected to generate $1.8 billion, he said. 

In November Egypt’s New Urban Communities Authority and Qatari Diar, the real estate arm of Doha’s sovereign wealth fund, signed an agreement to invest around $30 billion in an urban development project in Alam Al-Roum.

El-Homosany said that the New Urban Communities Authority will receive 15 percent of the project’s net profit after the full recovery of investment costs.

Alam El-Rum is located nearly 50km from Ras El Hekma city, which is being developed by Abu Dhabi’s sovereign wealth fund, ADQ, at a cost of $35 billion.

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In September 2024 Egyptian prime minister Mostafa Madbouly said the country was planning new developments along the Red Sea coast, with at least five areas identified for deals similar to those in Ras El Hekma.

Qatar has already pledged to invest $7.5 billion in Egypt as Cairo seeks to attract new money and boost economic growth.

Cairo aims to attract $42 billion in foreign direct investment during the 2025-26 fiscal year, which commenced in early July.