• Qatar will inject $4 billion into a new tourism megacity on Egypt’s northern coast.

• The site will cover 24,000 hectares, with luxury hotels, residences, and a marina.

• Egypt targets $42 billion in FDI for the 2025-2026 fiscal year to boost its weak economy.

Egypt is betting big on Gulf wealth to pull its sluggish economy out of crisis. Reeling from multiple shocks—including the Ukraine war, Middle East turmoil, and Gulf instability—the government now leans heavily on sovereign funds from oil-rich monarchies for lifeline investments.

On July 21, Asharq Business reported that the Qatar Investment Authority (QIA) will invest $4 billion in a large-scale tourism project on Egypt’s northern coastline. The report cites three sources close to the matter, including two senior Egyptian officials.

According to these sources, Egyptian Prime Minister Mustapha Madbouly recently signed an agreement with his Qatari counterpart, Sheikh Mohammed Ben Abderrahmane Al Thani, to launch the project. Officials expect an official announcement in the coming months.

The project will rise in Alam El-Rum, along the Mediterranean coast. It spans 24,000 hectares, and will feature luxury hotels, upscale residential areas, shopping malls, entertainment districts, and a modern marina.

Government insiders say the project draws inspiration from Ras El-Hekma, another massive coastal initiative. There, Abu Dhabi Developmental Holding Company—Abu Dhabi’s sovereign wealth fund—is investing $35 billion to turn the area into a tourist hub, financial centre, and free zone just 350 km northwest of Cairo.

An Egyptian official confirmed the government is now finalizing land allocation and licensing procedures for QIA. These fast-moving preparations signal Egypt’s intent to begin construction quickly.

This deal aligns with Egypt’s broader strategy. Authorities recently set an ambitious goal to attract $42 billion in foreign direct investment during the 2025–2026 fiscal year, which began on July 1st, 2025.

This article was initially published in French by Walid Kéfi

Edited in English by Ange Jason Quenum