The decree (No. 531 of 2022) was approved by the House of Representatives in February.
The deal is a "simplified" agreement, meant to simplify the negotiation and approval process, making it faster and easier to secure funding.
The agreement was signed on the condition that the project utilised French technology and expertise.
The Abu Qir metro project is meant to improve connectivity and reduce traffic congestion in Alexandria.
After its completion in 2028, the elevated railway line, which has 20 stations, will connect the Misr Station and Abou Qir stations located in downtown Alexandria with Abou Qir, situated 23 km northeast of Alexandria.
The first phase of the project began in 2021 and relied on the current Abu Qir railway track for about 22 km, with 18 surface and elevated stations.
The second stage will cover about 8 km from Misr to Max stations, while the third and final stage will complete the track from Max to the end of the line in Borg El-Arab for about 15.5 km.
The project is part of the government's efforts to improve transport links and boost economic growth. Officials say the project will create jobs and support development in Alexandria.
The project has received a total funding of €750 million, with the Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD), and Agence Française de Développement (AFD) each contributing €250 million.
Several other initiatives are underway in the Mediterranean city, including upgrades to the Misr station and electric rail systems.