Khaberni - Qatar's Diar company intends to sign a partnership agreement with the Egyptian New Urban Communities Authority to invest $29.7 billion in developing a tourism project on the country's northern coast, boosting the attractiveness of a region that has seen Gulf investment interest, according to Reuters.
The agreement includes the Qatari company paying $3.5 billion for land in the Alm al-Rum area, and a tangible investment of $26.2 billion to build the project, which will cover an area of 4900 acres along 7.2 kilometers of coast. Diar Qatari is owned by the Qatari sovereign wealth fund, Qatar Investment Authority.
"Diar Qatari" will focus on developing tourist sites, other real estate projects, and golf courses in the project, aiming to attract regional and international visitors, according to Bloomberg, citing individuals who wished to remain anonymous. The partnership contract with the company affiliated with the sovereign fund "Qatar Investment Authority" is expected to be signed on Thursday.
Al-Sharq reported in early October last year that Qatar had agreed to purchase 5000 acres in the "Alm al-Rum" area on the northern coast of Egypt for up to four billion dollars, to establish a comprehensive tourism project, according to a government official who spoke to Al-Sharq on condition of anonymity.
"Alm al-Rum", named for the presence of an ancient Roman fortress, is located east of Marsa Matruh city, and is a favored destination for fishing enthusiasts and family tourism due to its quiet beaches and natural beauty.
The project comes nearly a year after the launch of the "Ras Al Hikma" project on the northern coast as well, with investments estimated at $35 billion, under an investment agreement between the two countries, where the Emirati company "ADQ Holding" acquired development rights for $24 billion allocated for development, while the Egyptian government retained a 35% stake in the project and its revenues. Alm al-Rum area is about 50 kilometers from "Ras Al Hikma" city.
The Egyptian real estate market is experiencing increasing momentum with the influx of Gulf capital, where a report from consulting firm Knight Frank revealed that wealthy Gulf individuals plan to invest $1.1 billion in purchasing a second home in Egypt by 2025, with Emiratis and Saudis topping the list.
The northern coast, long known for its golden beaches favored by wealthy Egyptians in summer, is playing an increasingly important role in the country's plan to rapidly enhance foreign tourism and achieve the goal of welcoming 30 million visitors annually by 2031.
These investments are expected to help provide hard currency for Egypt, which is recovering from the worst foreign currency crisis it has experienced recently, which led to a devaluation of the currency. It is also expected to contribute to advancing efforts to attract foreign direct investment on a large scale, while the state commits to empowering the private sector. These two elements are key pillars in the extended IMF program worth $8 billion.
The International Monetary Fund postponed and merged the last two reviews of its program with Egypt, awaiting greater progress by the authorities in their commitments to selling state-owned assets and reducing the government role in the economy. The agreement with Qatar is likely to act as an important guarantee, likely paving the way for reaching an expert-level agreement and then disbursing $2.5 billion IMF loan tranches.
Saudi interest in the Red Sea
At the same time, Saudi Arabia's "Ajlan & Bros Holding Group" is seeking to inject initial investments of $1.5 billion to establish tourism projects in the "Ras Jamila" area overlooking the Red Sea coast in Egypt, according to an insider who spoke to Al-Sharq in April, on condition of anonymity.
Egypt has also begun developing an investment plan for the "Ras Banas" area on the Red Sea to offer it to private sector companies for development, similar to the "Ras Al Hikma" project, according to Housing Minister Sherif Al-Sharabini.
"Ras Banas" is described as one of the largest pristine coral reef assemblages in the world. The peninsula extends 50 kilometers into the Red Sea and includes the ancient Bernice Port.
This project comes as the Egyptian government intensifies its efforts to attract foreign investments, as part of its efforts to bridge the financing gap in its budget, reduce external debt, and enhance the role of the private sector, in line with the economic reform program agreed upon with the International Monetary Fund.
Egypt aims to attract $42 billion in foreign direct investments during the fiscal year 2025-2026 that began in early July.
