Egypt and Qatar signed a partnership deal yesterday to develop a luxury real estate and tourism project on Egypt’s Mediterranean coast, part of Doha’s $7.5 billion investment pledge to Cairo.
Egyptian Prime Minister Mostafa Madbouly said at a signing ceremony held in Egypt’s New Administrative Capital that Qatar will pay $3.5bn in December for the land allocated to the Alam Al Roum project.
The land payment forms part of a $29.7bn investment by Qatari Diar, the real estate arm of Doha’s sovereign wealth fund, in the project, which would include golf courses and marinas on an undeveloped 7km stretch of coastline about 480km northwest of Cairo.
The $3.5bn will be fresh FDI, and not deposits, and will be used to lower debt and improve Egypt’s economic indicators, Egyptian Finance Minister Ahmed Kouchouk told Reuters.
Egypt will also receive housing units valued at $1.8bn and 15pc of the project’s profits after Qatari Diar recovers its investment costs, Madbouly said. Egypt has for years sought to attract foreign investment, particularly from Gulf states, as it struggles with heavy foreign debt and a widening budget deficit.
The International Monetary Fund held up disbursements to Egypt under a biannual review due to a delay in Qatari investment that Cairo had told the IMF would materialise by June, two financial sources said. Qatari Diar’s existing holdings in Egypt include the St Regis Cairo hotel and apartments and CityGate and NEWGIZA – planned residential developments on the outskirts of Cairo.
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