Qatar is preparing to invest nearly $4 billion in a large-scale tourism and real estate development along Egypt’s northwestern Mediterranean coast, according to senior government sources cited by Asharq News. The project, led by the Qatar Investment Authority (QIA), would represent a major expansion of Gulf economic influence in Egypt’s strategic tourism corridor.
Planned for the coastal town of Ras Alam El-Rum, the development will span approximately 240,000 square meters and feature high-end resorts, luxury residences, retail centers, a marina, and integrated leisure infrastructure, positioning it as a direct counterpart to the UAE-backed Ras Al-Hekma megaproject.
Gulf Rivalry Driving Strategic Investment into Egypt
The move comes just over a year after ADQ (Abu Dhabi Developmental Holding Company) pledged $35 billion to develop Ras Al-Hekma, now the largest foreign investment in Egypt’s modern history. Qatar’s new project is widely seen as both a strategic and economic response, reaffirming Doha’s commitment to regional investment competition and Cairo’s growing role as an investment gateway.
According to officials, the first phase of the QIA-backed project will develop 20–25% of the total land area, with Egypt retaining a 15% revenue share. Negotiations over final land allocation and licensing are in progress, with a formal announcement expected before the end of 2025 if talks succeed.
$42 Billion in FDI as Fiscal Pressures Mount
The project aligns with Egypt’s aggressive investment drive aimed at attracting $42 billion in foreign direct investment during the current fiscal year (2025–2026), amid ongoing efforts to ease public debt burdens, stabilize the Egyptian pound, and secure long-term IMF support.
A recent report by the Institute of International Finance (IIF) urged Cairo to accelerate privatization, reduce state dominance, and deepen structural reforms—critical conditions for sustained assistance from the IMF and Gulf sovereign wealth funds.
Strategic Value of Egypt’s Mediterranean Frontier
Egypt’s Mediterranean coastline is rapidly emerging as the new frontier for luxury real estate and tourism investment in the Middle East. Ras Alam El-Rum—less than 300 kilometers from Alexandria—offers favorable climate, natural beauty, and strategic access to European markets.
The QIA project is expected to mirror the “new city” model adopted at Ras Al-Hekma, combining upscale tourism, urban infrastructure, and foreign-funded development to stimulate local economies and generate employment in adjacent governorates.
“Qatar’s entry into the Mediterranean development race reinforces the region’s potential as a premium destination,” said an economist at a regional think tank. “It’s no longer just about Red Sea resorts—this is the next phase of Egypt’s tourism economy.”
Public–Private Partnership Model Gains Momentum
The proposed revenue-sharing arrangement—granting Egypt a 15% stake—reflects a broader shift in Cairo’s approach to foreign investment: moving from land sales to long-term, profit-sharing models that preserve national interests while leveraging foreign capital.
Egyptian authorities have increasingly favored strategic Gulf partnerships that provide currency inflows without adding to external debt, particularly in light of tightening global financing conditions.
