Qatari Diar To Invest $29.7 Billion In Egypt's Mediterranean Coast Development Project
Qatari Diar, the real estate division of Qatar's sovereign wealth fund, is poised to collaborate on a significant development along Egypt's Mediterranean coast. This venture involves an investment of approximately $29.7 billion, according to a source familiar with the situation, as reported by Reuters. The agreement is expected to be finalised on Thursday, as per local news outlet Cairo24.
The partnership will see Qatari Diar and Egypt's New Urban Communities Authority (NUCA) working together to develop the Alam El-Roum area. Under this arrangement, Qatari Diar will pay $3.5 billion for the land and provide an in-kind investment worth $26.2 billion for construction and development.
Egypt has been actively seeking foreign investments, especially from Gulf countries, to alleviate its growing foreign debt and budget deficit. This deal aligns with Egypt's strategy of partnering with international investors to boost urban growth and attract foreign direct investment in its coastal areas.
Once completed, the coastal project is anticipated to become one of Egypt's largest real estate and tourism initiatives. It is projected to generate annual revenues of at least $1.8 billion. NUCA will receive 15 percent of the project's profits, highlighting Egypt's collaborative approach with global investors.
Egypt is currently engaged in an Extended Fund Facility (EFF) loan programme with the International Monetary Fund (IMF). As part of this programme, Egypt has committed to using 50 percent of proceeds from its divestment plan, including initial public offerings (IPOs), to lower its debt ceiling.
An IMF mission is expected in Cairo soon for discussions related to completing the fifth and sixth reviews of Egypt's $8 billion EFF loan programme. The fifth review was initially set for June but was delayed due to slow reform progress aimed at enhancing private sector involvement.
During October's annual meetings of the IMF and World Bank Group in Washington DC, Egyptian representatives emphasized recent positive economic indicators. They also discussed a new economic plan extending to 2030 and noted the first upgrade to Egypt's credit rating in seven years.
The combined fifth and sixth reviews are now anticipated for completion by December. This development underscores Egypt's ongoing efforts to stabilize its economy through strategic partnerships and reforms aimed at fostering sustainable growth.
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