Qatar is reportedly set to invest USD 4 bn in a major tourism development on the North Coast, Asharq Business reports, citing three sources it says are familiar with the matter, including two government officials. The project, located in the Alam El Roum area, will reportedly span 60k feddans and be developed under a usufruct agreement with the Qatar Investment Authority, the sources are quoted as saying.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

The fine print: The USD 4 bn ticket covers both land rights and the cost of infrastructure to be developed by the Egyptian government. The state’s revenue share could reach 15% of total project income once all phases are completed, with the first phase of the project expected to cover 25% of the total development area. The development will feature tourist resorts, luxury residential units, commercial and entertainment centers, a yacht marina, and advanced service facilities, mirroring the model of Ras El Hekma, according to one source.

Where things currently stand: Final procedures for land allocation and licensing are underway, with a final announcement anticipated later this year.

Background: Qatar previously agreed to work toward a USD 7.5 bn direct investments pledge in Egypt, without providing details. Reports later suggested that Qatar was in advanced talks to develop a North Coast tourism project, with expectations of an agreement by year-end. Under the reported terms, Egypt would receive USD 1 bn upfront, with the remaining funds to be disbursed over the following year. Qatari investors are also reportedly eyeing majority stakes in terminal operators.

Qatar’s investments are part of a growing GCC investment wave: After Abu Dhabi wealth fund ADQ signed the USD 35 bn agreement last year to develop Ras El Hekma, other GCC countries began lining up for fresh investment talks in Egypt. Kuwait is in talks to convert USD 4 bn of deposits it holds in Egypt’s central bank into direct investments across several sectors, while Saudi Arabia also plans to convert some of its USD 10.3 bn in deposits into long-term investments. There have also been reports that a still-unnamed Gulf sovereign wealth fund is planning to announce a big-ticket project in the Ras Shukier project in the Red Sea.

Tags: