The deal was signed by Minister of Housing, Utilities and Urban Communities Sherif El-Sherbiny, represented by the New Urban Communities Authority (NUCA), and Qatar’s Municipality Minister and Diar Chairman Abdullah bin Hamad Al Attiya, in the presence of Prime Minister Mostafa Madbouly and Diar CEO Ali Mohamed Al-Ali.
The agreement aims to establish an integrated urban development project in accordance with global standards, making Alam El-Roum area a regional hub for service, tourism, residential, and commercial activities.
The city is set to become a world-class coastal tourism and investment destination as part of Egypt’s ongoing national efforts to attract more foreign direct investment.
According to the Egyptian Cabinet, the project includes upscale residential districts, tourism and entertainment developments, open artificial lakes, golf courses, an international marina, and two local internal marinas.
It also encompasses power distribution facilities, water desalination and treatment plants, as well as hospitals, schools, universities, and several government buildings.
Under the agreement, the project company, which will be established and is expected to be almost entirely owned by Qatari Diar, will be responsible for preparing a master plan aligned with NUCA’s building regulations.
The plan must be officially approved by the Authority.
During the ceremony, the Egyptian PM stressed that the agreement represents a major investment partnership with Qatar, reinforcing the deep-rooted fraternal relations and long-standing ties between the two countries.
Madbouly stressed that the deal aligns with the shared commitment of both leaderships to deepen economic cooperation between Cairo and Doha and expand joint investment efforts in a manner that supports sustainable economic development for the benefit of both peoples.
He also said that the agreement reflects the mutual understanding previously reached by the leaders of both nations to enhance economic partnership and launch a new wave of direct Qatari investments in Egypt.
Regarding the terms of the agreement, the Egyptian PM explained that the mechanism follows the state’s established approach with developers and private-sector partners, whereby the land is allocated to the investor, Diar, in exchange for a cash payment, an in-kind share, and a portion of the project profits allocated to NUCA.
According to Madbouly, the $3.5-billion cash payment will be transferred by Diar before the end of the year, while the in-kind share will be received in the form of residential units valued at approximately $1.8 billion upon sale after delivery.
Additionally, NUCA will receive 15 percent of the net profits, including returns from the project company and associated entities controlled by Qatari Diar, once full investment costs are recovered in accordance with the agreement.
He noted that housing developments will account for around 60 percent of the total land area, with service areas not exceeding 15 percent, and roads, public spaces, and green areas making up 25 percent, while no industrial components are planned for the site.
The land will be delivered free of any encumbrances in two main phases and several sub-phases, Madbouly noted.
The Egyptian PM further affirmed that the state is pressing ahead with efforts to attract and expand foreign direct investment, as major integrated development projects such as this one support land development.
Such projects, he said, also enable new urban communities, create job opportunities for young people, strengthen national economic growth, and provide strong returns for investors.
For his part, Diar Chairman said the project is a strategic step toward enhancing the status of Egypt’s North Coast as a fully integrated global destination.
It also reflects Qatar’s commitment as a partner in supporting Egypt’s efforts to achieve sustainable development and ensure year-round use of coastal areas.
Al Attiya noted that the project, with an estimated investment value of around $29.7 billion, is expected to create over 250,000 direct and indirect jobs, highlighting Qatari Diar’s strong confidence in the strength of Egypt’s economy and the exceptional strategic value of the project’s location.
In addition, Diar CEO confirmed that the project marks a new milestone in developing exceptional destinations in Egypt, as part of a series of strategic investments focusing on high-value tourism hubs.
Al-Ali added that the project will be a defining landmark in the development of the North Coast and a global destination reshaping Mediterranean tourism standards, offering a hotel capacity exceeding 4,500 rooms.
The project will be executed by the project company, wholly owned by Qatari Diar, in coordination with NUCA to ensure the design fully aligns with global best standards.
Alam Al-Roum project comes as part of a series of major investment initiatives in Egypt’s tourism destinations, aiming to support sustainable economic growth, and strengthen the country’s position as a leading regional hub for tourism and investment.
In September, Egypt signed an $18-billion deal with Emirati Emaar and Saudi City Stars to launch their latest flagship project, Marassi Red Sea, in the Red Sea governorate.
In February 2024, Egypt signed a landmark agreement worth $35 billion with the UAE’s ADQ to develop the Ras El-Hekma region on the North Coast into a world-class Mediterranean city.
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