Egypt receives $3.5 billion to develop waterfront project

Egypt has received $3.5 billion from Qatar as part of an investment agreement to develop a residential and tourism project on its northwestern Mediterranean coast.   

The payment represents the cash portion of the deal, Mohmed El-Homosany, the spokesperson for the Egyptian cabinet, said in a statement. 

The second phase involves an “in-kind consideration” consisting of the project’s residential units, that are expected to fetch about $1.8 billion on sale, he said. 

The New Urban Communities Authority is entitled to a share equal to 15% of the project’s net profits. 

The New Urban Communities Authority and Qatari Diar Company - the real estate arm of Qatar’s sovereign wealth fund – signed an agreement in November to implement an urban tourism project in the Alam El Roum area on the northwestern coast of Egypt's Matrouh Governorate.

The $29.7 billion project spans across 4,900 acres, along a 7.2 kilometer Mediterranean waterfront, featuring residential complexes, tourism and entertainment projects, golf courses and a yacht marina.

The project will also host a service free zone, electricity distribution and water desalination and treatment plants, hospitals, schools, universities, and several government offices. 

Approximately 60% of the total land area will be allocated for residential development, 25% to roads, squares and open green spaces with 15% to service areas.