Qatar nears $3.5 billion investment deal in Egypt’s mediterranean tourism sector

Egypt is reportedly in advanced negotiations with Qatar for a $3.5 billion investment into a major tourism development project on the country’s Mediterranean coast, according to Egyptian media reports.

The deal, which could be concluded before the end of 2025, is seen as a significant boost to Egypt’s economic recovery efforts amid heightened regional instability.

While the specific location and scope of the proposed project have not yet been publicly disclosed, the development is expected to target one of Egypt’s prime coastal destinations—an area long considered pivotal to the country’s long-term tourism and investment strategies.

This potential agreement would mark yet another show of financial support from Gulf nations, following the landmark $35 billion deal between Egypt and the United Arab Emirates (UAE) earlier in 2024.

That agreement, which included a $24 billion commitment to transform the Ras El Khema region into a global tourism and investment hub, played a vital role in stabilizing Egypt’s economy during a period marked by inflation, currency devaluation, and geopolitical spillovers from the Gaza conflict.

The talks with Qatar come at a time when Egypt faces renewed economic pressures due to regional uncertainties, including escalating tensions between Israel and Iran.

In this context, foreign capital inflows are not just welcome—they are crucial.

Sources familiar with the negotiations say the proposed deal includes an upfront payment of $1 billion from Qatar upon signing, with the remaining funds to be disbursed over the course of the following year.

The Egyptian government has previously expressed interest in leveraging its North Coast assets to replicate the UAE-backed Ras El Khema model, emphasizing large-scale development partnerships that can deliver both immediate economic relief and long-term growth.

If finalized, the Qatari investment would further cement Egypt’s position as a key regional destination for Gulf capital and could serve as a catalyst for additional international investment in the country’s vital tourism and real estate sectors.