After a $29.7 billion real-estate and tourism deal on the North Coast and a $200 million agreement to produce sustainable aviation fuel in the Suez Canal Economic Zone (SCZone), Qatar has finalised an agreement to supply Egypt with liquefied natural gas (LNG) during the summer months.
This is the most recent form of cooperation between the two countries after a year in which many important agreements were signed. Qatar announced in 2025 that it would dedicate a $7.5 billion investment package to Egypt, and in late 2025 Qatari investments in Egypt totalled around $3.2 billion across 266 companies.
Recent months have witnessed a noticeable strengthening of economic relations between Egypt and the Gulf states, particularly Qatar, which has begun diversifying its investment destinations across various countries worldwide, Farag Abdallah, an economist and member of the Egyptian Association for Political Economy, told Al-Ahram Weekly.
He noted that the global economy is experiencing imbalances due to rapid political developments, which in turn affect the movement of capital seeking to minimise risks and contribute to reshaping the global investment landscape.
Abdallah explained that escalating concerns resulting from political tensions have pushed investments towards partnerships with governments, a trend reflected in Gulf investments, including Qatari investments in the Al-Alam Al-Roum deal in Egypt.
In December 2025, Egypt received $3.5 billion from Qatari Diar, the real-estate arm of Qatar’s sovereign wealth fund, as part of an investment agreement for the development and expansion of the Samla and Al-Alam Al-Roum Project on the northwestern coast of Matrouh governorate, with total investments amounting to $29.7 billion.
Of this sum, Egypt received $3.2 billion representing the value of the land last week.
Qatar has recently been moving towards diversifying its investment portfolio, even if returns are lower than oil revenues, in anticipation of potential changes in the global economic system, Abdallah said. This has prompted it to invest in assets and minerals instead of retaining its oil revenues in US and European banks.
Abdallah said that Qatar had injected around $55 billion of investments into Turkey following the earthquake that struck the country a year and a half ago in an example of its trend to invest in assets. He noted that Egypt’s stable political and economic environment makes it well positioned to attract further investments.
Abdallah noted that Egypt offers attractive incentives for foreign investment, from which Qatari investments also benefit, given the Egyptian market’s high profitability rates and lower tax levels compared to Europe and North America.
He highlighted Egypt’s role in establishing the Eastern Mediterranean Gas Forum and transforming it into an intergovernmental organisation headquartered in Cairo, a development that has strengthened Egypt’s position as a gas trading hub and contributed to attracting major deals in gas liquefaction and re-export.
Qatar Energy announced that it will supply Egypt with up to 24 shipments of LNG during the summer of 2026, under an agreement signed between the Egyptian Natural Gas Holding Company (EGAS) and the Qatari company.
The agreement comes as a continuation of the success of bilateral cooperation between the two countries, particularly in the supply of LNG.
Karim Adel, president of the Al-Adl Centre for Economic and Strategic Studies, a think tank, told the Weekly that Egypt has a strong track record in attracting foreign direct investment (FDI), relying on a system of tax exemptions, the availability of advanced basic and technological infrastructure, and efforts to remove obstacles facing the establishment of diverse business activities.
He explained that Egypt has become both a regional and a global hub due to its strength in key sectors, most notably agriculture and energy, supported by its unique geographical location and its role as the main gateway for business and investment in Africa.
Adel said that the recent Qatari investments are the result of important relations and partnerships that strengthen ties between Egypt and Qatar at the political, strategic, economic, commercial, and industrial levels.
He expects the coming period to see the implementation of a number of joint projects between the two sides, particularly in infrastructure development, energy, and transport, alongside the review of opportunities related to infrastructure and technology development.
Egypt and Qatar aim to achieve sustainable development and build a smart environment by focusing on mechanisms to realise sustainability and protect the environment in the light of global environmental challenges, he added.
The contribution of real-estate activities to Egypt’s economy has increased over recent years, reaching around 20 per cent of GDP. This makes real-estate investment, including tourism-related real estate, a store of value for individuals, companies, and states alike, Adel said.
He said that maximising the economic returns from these investments depends on the speed with which agreed-upon real estate, tourism, and hotel projects can be implemented, given their role as a key driver for various economic sectors in Egypt, including transport and logistics, communications and technology, construction, tourism, and housing.
* A version of this article appears in print in the 8 January, 2026 edition of Al-Ahram Weekly
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