Qatar, Egypt Sign Deal To Implement $29.7Bn Urban Development Project

*Qatari Diar Real Estate Investment Company and Egypt's New Urban Communities Authority to develop an integrated urban tourism project in the Alam al-Roum area on the Mediterranean coast

Qatari Diar Real Estate Investment Company signed an investment partnership agreement with Egypt's New Urban Communities Authority to implement an integrated urban tourism project according to the highest international standards, in the Alam El Roum area on the North Coast of Matrouh Governorate.

The project extends over an area of ​​around 4,900 acres and along 7.2km of Mediterranean beaches, with total investments estimated at more than $29.7bn.

The signing ceremony was attended on the Egyptian side by Prime Minister Dr Mostafa Madbouly, Minister of Finance Dr Ahmed Kouchouk, and Minister of Housing, Utilities, and Urban Communities Sherif El Sherbini.

On the Qatari side, it was attended by His Excellency Minister of Municipality and Chairman of the Board of Directors of Qatari Diar Abdullah bin Hamad bin Abdullah al- Attiyah, CEO of Qatari Diar Ali Mohammed al-Ali, and Chief Development and Project Delivery Officer — Asia and Africa at Qatari Diar, Sheikh Hamad bin Talal al-Thani.

The project aims to transform Alam al-Roum into a comprehensive tourism and investment destination, encompassing residential, tourist, commercial, and service areas.

 It will feature upscale residential complexes and neighbourhoods, tourism and entertainment projects, open artificial lakes, golf courses, and a marina for yachts, including one international and two inland local marinas.

The project will also include a complete infrastructure, such as a service free zone, electricity distribution and water desalination and treatment plants, hospitals, schools, universities, and several government offices.

Stretching along a 7.2 km waterfront, the project is expected to be one of the largest development projects in the region and is anticipated to attract investments, boost economic growth, and create both direct and indirect job opportunities.

The agreement includes a cash price of $3.5bn and an in-kind consideration of 396,000 square meters of built-up area, the sale of which is expected to generate revenues of at least $1.8 bn. In addition, 15 % of the project's profits will be allocated to the New Urban Communities Authority after the company recovers its full investment costs. These profits include the output of the company and its subsidiaries.

The land use within the project is distributed as follows: residential land constitutes approximately 60 % of the total area, 15 % is allocated to service areas, and 25 % to roads, squares, and open green spaces. The project land will be delivered free of any encumbrances in two main phases and several sub-phases.

In this context, Dr Mostafa Madbouly emphasised that this agreement represents a major investment partnership reflecting the depth of the fraternal relations between Egypt and Qatar. 

He said that it is an important step in strengthening economic and investment cooperation between the two countries, given the distinguished relationship between President Abdel Fattah al-Sisi and His Highness the Amir Sheikh Tamim bin Hamad al-Thani.

 He added that the partnership embodies the vision of both leaderships for integrated economic cooperation that contributes to supporting sustainable development and attracting high-quality investments to the Egyptian market.

He noted the government's commitment to removing any obstacles facing investors and its keen interest in partnering with Qatar on this project, which is one of the largest Arab investments in the real estate and tourism development sector and reflects investor confidence in the Egyptian economy.

For his part, HE Abdullah bin Hamad bin Abdullah al- Attiyah said that the project represents a strategic step toward enhancing the status of Egypt's North Coast as a comprehensive global destination, and embodies Qatar's commitment as a partner in supporting the Egyptian government's efforts to achieve sustainable development and year-round operation of coastal areas.

The project represents one of the most prominent investment ventures in the region, with a total investment of approximately $29.7 bn, he said, noting that this is expected to provide more than 250,000 direct and indirect job opportunities.

HE Minister of Municipality and Chairman of the Board of Directors of Qatari Diar added that the project also reflects Qatari Diar's confidence in the strength of the Egyptian economy and its belief in the value of investing in Egypt's unique geographical location.

Speaking to Qatar News Agency following the signing of the deal, CEO of Qatari Diar Ali Mohammed al-Ali emphasized that the "Alam al-Roum" project represents a new step in developing luxury destinations in Egypt, as part of a series of strategic investments targeting high-value tourist destinations. He added that the project will be a landmark in the development of the North Coast and a global destination that will redefine tourism standards on the Mediterranean through development spanning more than 20mn square meters and boasting over 4,500 hotel rooms.

He indicated that the project will be implemented by a special-purpose project company wholly owned by Qatari Diar, in coordination with the New Urban Communities Authority to ensure the design adheres to the highest international standards.