Monday, 25 May 2026
Visitors take photos in front of the entrance to the New Alamein Festival and residential projects in New Alamein City, Matrouh Governorate, Egypt, on Thursday, August 24, 2023. Source: Bloomberg
Egypt and Qatar finalize $4 billion tourism mega-project on Mediterranean Coast
Egypt and Qatar are putting the final touches on a landmark tourism development project worth $4 billion in Egypt’s North Coast, as both nations strengthen their investment partnership.
According to three informed sources cited by Asharq Business, including two government officials who spoke on condition of anonymity, the new venture will take shape in the “Alam El Roum” area, east of Marsa Matrouh.
The deal was solidified during a recent meeting between Egyptian Prime Minister Mostafa Madbouly and his Qatari counterpart, Sheikh Mohammed bin Abdulrahman Al Thani. It will see the creation of an integrated tourist city spanning roughly 60,000 feddans (about 246 square kilometers), with Qatar Investment Authority set to operate the site under a usufruct agreement.
Early plans for the new city include world-class resorts, luxury housing, shopping and entertainment centers, a state-of-the-art marina, and advanced service facilities—reminiscent of the recently announced Ras El Hekma project, which attracted $35 billion in Emirati investment last October.
The Alam El Roum region, named for its ancient Roman fortress, is a beloved destination for families and fishing enthusiasts, renowned for its tranquil beaches and natural beauty. It lies approximately 50 kilometers east of Ras El Hekma on Egypt’s famed Mediterranean shores.
Recent reports indicate Qatar has been in advanced discussions to inject as much as $3.5 billion into the wider North Coast tourism sector.
According to one of the sources, the first phase of the project will cover 20-25% of the total land area. Upon full completion, Egypt’s government could receive up to 15% of the project’s overall revenues. The initial $4 billion investment covers both the land operation rights and the infrastructure development, the latter to be handled by the Egyptian government.
Currently, final steps are underway to allocate the land and secure the necessary licenses. Should discussions progress smoothly, an official announcement is expected later this year.
This partnership comes as Egypt intensifies efforts to attract more foreign investment—key to closing finance gaps, lowering external debt, and expanding the private sector, all in line with its economic reform program agreed upon with the International Monetary Fund.
The country aims to bring in $42 billion in direct foreign investment during the 2025-2026 fiscal year, which began this July. However, Egypt has struggled to privatize shares in state-backed companies and banks, largely due to low bids amid ongoing geopolitical tensions.
These challenges have prompted the IMF to merge the fifth and sixth reviews of Egypt’s loan program, set for September and October, underscoring the urgent need for the country to demonstrate progress in divestment and foreign currency inflows.
As the region continues to attract significant international capital, the Egypt-Qatar tourism city project stands as a hopeful beacon for broader economic revival, job creation, and cultural exchange on the shimmering Mediterranean coast.