A major investment agreement was signed early this month between Qatari Diar Real Estate Investment Company and Egypt’s New Urban Communities Authority (NUCA). The deal concerns the development of an integrated urban tourism project on Egypt’s Mediterranean coast.

The total investment in the project is estimated at more than USD 29.7 billion, or approximately £24 billion. The massive coastal development will be implemented in the Alam El Roum area, located in the Matrouh Governorate on the North Coast.

The project will extend over an area of around 4,900 acres and along 7.2 kilometers of Mediterranean beaches. It aims to transform the land, which exceeds 20 million square meters, into a comprehensive, world-class tourism and investment destination, attracting both residents and tourists throughout the year.

The development will encompass residential, tourist, commercial, and service areas. Planned features include upscale residential complexes and neighbourhoods, tourism and entertainment projects, golf courses, and open artificial lakes. The project will also include a marina for yachts, including one international and two inland local marinas. Furthermore, a complete infrastructure is planned, featuring service free zones, water desalination and treatment plants, hospitals, schools, universities, and several government offices.

The signing ceremony was a high-level affair. It was attended on the Egyptian side by Prime Minister HE Dr Mostafa Madbouly, Minister of Finance HE Dr Ahmed Kouchouk, and Minister of Housing, Utilities, and Urban Communities HE Eng Sherif El Sherbini. On the Qatari side, attendees included Minister of Municipality and Chairman of the Board of Directors of Qatari Diar HE Abdullah bin Hamad bin Abdullah Al Attiyah, CEO of Qatari Diar Eng Ali Mohammed Al Ali, and Chief Development and Project Delivery Officer – Asia and Africa at Qatari Diar, Sheikh Hamad bin Talal Al-Thani.

The agreement details the financial structure of the deal. Egypt will receive an initial cash payment of USD 3.5 billion before the end of 2025. This will be followed by an in-kind consideration of 396,000 square meters of built-up area. The sale of this land is expected to generate revenues of at least USD 1.8 billion. In addition, 15 percent of the net project profits will be allocated to NUCA after Qatari Diar has fully recovered its full investment costs.

Egyptian Prime Minister Madbouly said that this agreement represents a major investment partnership reflecting the depth of the fraternal relations between Egypt and Qatar. He added that it is an important step in strengthening economic and investment cooperation between the two countries, given the distinguished relationship between HE President Abdel Fattah El-Sisi and the Amir HH Sheikh Tamim bin Hamad Al-Thani. He noted that the project is expected to provide more than 250,000 jobs during construction and operation.

Minister 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 the State of Qatar’s commitment as a partner in supporting the Egyptian government’s efforts to achieve sustainable development and year-round operation of coastal areas. CEO Al Ali stated 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 20 million square meters and boasting over 4,500 hotel rooms.