Egypt has received $3.5bn from Qatari Diar Real Estate Investment Company as the initial cash payment for a project to develop the Semla and Alam El Roum area on the northwestern coast, the Egyptian cabinet said.
The payment is part of an investment partnership agreement signed on Nov. 6 between Egypt’s New Urban Communities Authority and the Qatari firm to develop an integrated urban tourism destination in Matrouh Governorate.
Cabinet spokesman Mohamed El-Homsani stated the $3.5bn represents the “cash price” component, which is the first part of the agreement. This will be followed by an in-kind component consisting of residential units within the project’s building area. The sale of these units is targeted to generate an estimated $1.8bn.
Furthermore, the New Urban Communities Authority is entitled to a 15% share of the net profits of the project company and its controlled subsidiaries. This profit sharing will commence after the full recovery of investment costs in accordance with the agreement’s provisions, El-Homsani said.
The total investment for the venture is estimated at more than $29.7bn. The project extends over an area of approximately 4,900 acres and includes 7.2 kilometres of Mediterranean beaches.
Abdullah bin Hamad bin Abdullah Al Attiyah, the Qatari Minister of Municipality and Chairperson of Qatari Diar, said in November, the development provides a strategic boost to the North Coast as a world-class, fully integrated destination. He made the remarks during a signing ceremony attended by Prime Minister Mostafa Madbouli, adding that the project underscores Qatar’s commitment to supporting the Egyptian government’s sustainable development efforts.
The development is expected to create more than 250,000 direct and indirect job opportunities. Ali Mohamed Al Ali, CEO of Qatari Diar, said the project marks a new milestone for high-value tourism hubs in Egypt and will feature a hotel capacity of over 4,500 rooms across a coastline spanning more than 20 million square metres.
According to the project plans, Alam El Roum will be transformed into a comprehensive destination encompassing residential, commercial, and entertainment areas. It will feature upscale residential complexes, artificial lakes, golf courses, and three yacht marinas, including one international and two inland local facilities.
The plans also include complete infrastructure such as a service free zone, electricity distribution plants, and water desalination and treatment facilities. The site will further host hospitals, schools, universities, and several government offices.
El-Homsani said the progress achieved today reflects the directives of President Abdel Fattah al-Sisi and the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, to deepen the economic partnership and bilateral cooperation between Cairo and Doha to serve the economic development of both countries.
