Egypt is close to reportedly finalizing a $4 billion investment agreement with Qatar that would see the Gulf state’s deposits in Egypt’s central bank converted into a large-scale real estate project.
Qatar-Egypt partnership
The investment will be directed to the Ras Alam El-Rum region on Egypt’s northwestern Red Sea coast, envisioned as a premier tourism and residential hub.
The project will cover 240,000 square meters and include luxury resorts, high-end housing, shopping malls, a yacht marina, and supporting infrastructure, Asharq reported earlier.
When completed, the $4 billion agreement would mark one of the largest Gulf-driven real estate investments in Egypt in recent years.
Fakhry Elfeki, chairman of the Planning and Budget Committee in the Egyptian Parliament, told CNBC Arabia that the transaction involves a usufruct agreement—a long-term lease structure—rather than an outright land sale.
The real estate venture is part of a broader $7.5 billion partnership package under discussion between Cairo and Doha, highlighted during meetings between Egyptian Prime Minister Mostafa Madbouly and his Qatari counterpart earlier this year. By converting central bank deposits into real assets, the agreement also signals a shift toward sustainable investment rather than short-term financial support.
FDI in Egypt
Cairo has stepped up efforts to attract $42 billion in foreign direct investment (FDI) during the 2025/26 fiscal year, which began July 1. The government is banking on Gulf partnerships to help ease debt burdens, finance development projects, and stabilize its currency.
Egypt already attracted $46.1 billion in FDI inflows in FY2023/24, ranking ninth globally and first in Africa as an investment destination, according to the General Authority for Investment and Free Zones (GAFI). Officials say large-scale real estate and tourism ventures, like the Alam El-Rum project, are crucial for sustaining this momentum, Zawya reported.
Qatar’s investment in Egypt
For Qatar, the deal strengthens its investment footprint in Egypt, a country of over 110 million people and a strategic gateway between Africa, the Middle East, and Europe. Qatar’s sovereign wealth fund has been diversifying beyond energy into sectors like real estate, hospitality, and logistics, aligning with this project’s scope.
Source: Forbes, QIA
