Nearly half of Qatar’s USD 7.5 bn direct investment pledge will go toward a Red Sea project, which will be undertaken by the Qatar Investment Authority-owned Qatari Dair and Marriott-owned hospitality chain St. Regis, a senior government source told EnterpriseAM. Details on the proposed USD 3.5 bn project are still few and far between, but it could be part of previously reported negotiations with unnamed Gulf sovereign wealth funds to launch big-ticket projects in the 174 sq km Ras Shukeir zone on the Red Sea.

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The news follows an increased focus on the area from hospitality and real estate players, including a EGP 900 bn — yes, you read that right — integrated tourism project from Emaar Misr and Saudi-owned real estate developer Citystars Properties. We also heard that the government is working to position the Red Sea as a year-round global destination, with four to five new tourism projects in the pipeline, covering 3-4 mn sqm, a government source has previously told EnterpriseAM.

The remaining USD 4 bn of the investment package will go toward a project on the North Coast, which Qatari Ambassador to Egypt Tariq Ali Faraj Al Ansari has recently told EnterpriseAM will be announced “as soon as possible.” Negotiations with the Qatari Real Estate Regulatory Authority are still underway and are focusing on the final parts of the agreement, our senior government source confirmed yesterday.

Another North Coast city project is in the works, with the government planning to launch a 2 mn sqm city that will house tourism developments, administrative areas, a special area for sports, and a sizable health resort. The offering will be open to international investors with a focus on public-private partnerships.

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