• Egypt receives $3.5 billion initial payment from Qatar-backed coastal project

• Deal targets Mediterranean real estate and tourism development near Matrouh

• Inflow supports foreign currency needs amid strained public finances

Egypt has received an initial payment of $3.5 billion under a Qatar-backed real estate and tourism development deal aimed at redeveloping a stretch of its Mediterranean coast, the government said on Tuesday.

The payment, announced on Dec. 30, represents a direct inflow of foreign capital and will be used to finance land acquisitions and support the government’s development agenda, according to a statement. It forms part of an agreement signed in November between Egyptian authorities and Qatari Diar Real Estate Investment Company, a subsidiary of Qatar’s sovereign wealth fund, to develop a large-scale project on the country’s northwest coast.

The project will redevelop a narrow, undeveloped waterfront area in the Semla and Alam Al-Roum districts near Matrouh into a high-end destination featuring residential units, hotels, marinas, tourism infrastructure and leisure facilities. Under the terms of the deal, Egypt is also set to receive residential units valued at $1.8 billion and will be entitled to 15% of the project’s net profits once investment costs have been recouped.

Total investment in the project is estimated at more than $29.7 billion.

For Cairo, the foreign currency inflow comes as public finances remain under strain, with high external debt and a growing need for hard currency. In recent months, the government has signed several agreements with Gulf partners as it seeks to support growth, stabilise the currency and revive investment.

Beyond the financial impact, authorities have presented the project as a driver of tourism development and job creation, particularly in underdeveloped coastal regions. Egypt’s Mediterranean coast is increasingly seen as a priority for diversifying tourism beyond the Red Sea resorts and the country’s historical sites.