Egypt and Qatar signed a partnership deal on Thursday 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 state TV reported.
Reuters reported on Wednesday that Qatari Diar, the real estate arm of Doha’s sovereign wealth fund, would invest $29.7 billion in the project, which would include golf courses and marinas in Alam Al-Roum, an undeveloped 7-km (4.4-mile) stretch of coastline about 480 km northwest of Cairo.
Egypt will also receive housing units valued at $1.8 billion and 15% of the project’s profits after Qatari Diar recovers its investment costs, Egyptian Prime Minister Mostafa Madbouly said at a signing ceremony held in Egypt’s New Administrative Capital.
Madbouly added on Thursday that Qatar will pay $3.5 billion in December for the land allocated to the Alam Al-Roum project.
These $3.5 billion will be fresh FDI, and not deposits, Egyptian Finance Minister Ahmed Kouchouk told Reuters.
Egypt has for years sought to attract foreign investment, particularly from wealthy Gulf states, as it struggles with heavy foreign debt and a widening budget deficit.
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.
(Reuters)