Prime Minister Dr. Mostafa Madbouly today witnessed, at the Cabinet headquarters in the New Capital, the signing ceremony of a new investment deal, through an investment partnership between the Ministry of Housing, Utilities and Urban Communities, represented by the New Urban Communities Authority, and Qatar's "Qatari Diar" company, to implement a project to develop a plot of land covering 4,900.99 feddans (equivalent to 20,588,235 square meters) within the "Samla and Alam El-Roum" area on the northwestern coast, in Matrouh Governorate.
The contract was signed by Eng. Sherif El-Sherbiny, Minister of Housing, Utilities and Urban Communities, and Abdullah bin Hamad bin Abdullah Al-Attiyah, Minister of Municipality and Chairman of the Board of Qatari Diar, in the presence of Minister of Finance Ahmed Kouchouk; Eng. Hassan El-Khatib, Minister of Investment and Foreign Trade; Eng. Ali Mohammed Al-Ali, CEO of Qatari Diar; and Sheikh Hamad bin Talal Al Thani, Head of Development and Projects in Asia and Africa at Qatari Diar.
The agreement aims to establish an integrated urban development project in line with international standards, to serve as a regional attraction for various service, tourism, residential and commercial activities, turning the Alam El-Roum area into an integrated, world-class coastal tourism and investment zone, as part of the Egyptian state's current efforts to attract more foreign direct investment.
The project includes the construction of upscale residential compounds and neighborhoods, in addition to tourism and entertainment projects, open artificial lakes, golf courses, an international tourist marina and two internal local marinas. The project also includes electricity distribution stations and other stations for water desalination and treatment, in addition to a number of hospitals, schools and universities, as well as a number of government headquarters.
Under the agreement, the project company (almost entirely owned by Qatari Diar), which is to be established to implement the project, is committed to preparing a master plan for the project in line with the building regulations set by the New Urban Communities Authority, and the master plan will be approved by the authority.
In his speech, Prime Minister Dr. Mostafa Madbouly affirmed that concluding this agreement today, which amounts to a major investment partnership with the Qatari side, crowns the firmly rooted brotherly relations and the depth of historical ties between Egypt and the sister State of Qatar. It also comes in light of the brotherly relations between the leaders of the two countries, His Excellency President Abdel Fattah El-Sisi, President of the Republic, and his brother His Highness Sheikh Tamim bin Hamad Al Thani, Emir of the State of Qatar, and the keenness of both sides to deepen the economic partnership between Cairo and Doha, the strong desire to enhance economic cooperation between the two countries, and continued joint work toward boosting investment and economic exchange, reflecting the political will of Egypt and Qatar and contributing to sustainable economic development that serves the aspirations of the two brotherly peoples.
Dr. Mostafa Madbouly said: Today's agreement embodies what was previously agreed upon between the leaders of the two countries regarding supporting the economic partnership between the two countries and launching a package of Qatari direct investments in Egypt during this phase.
Regarding the terms of the agreement, the Prime Minister indicated that it will follow the same mechanism the state, represented by the New Urban Communities Authority, uses with all developers and the private sector, whereby a plot of land is allocated to the investor (the Qatari company), and in return the state receives a "cash price" in addition to an "in-kind consideration", as well as a share of the project's profits allocated to the New Urban Communities Authority.
In this context, the Prime Minister explained the financial aspect stipulated in the agreement with the Qatari company, noting that the deal includes two parts: a first part, a "cash price" worth $3.5 billion, to be transferred by the investor before the end of this year, and another part, an "in-kind consideration" in the form of built-up area from the project's residential component in residential units (whose sale after handover is targeted to generate a value estimated at $1.8 billion), in addition to a profit-sharing stake allocated to the New Urban Communities Authority. Besides the cash price, the commercial deal entitles the authority to the equivalent of 15% of the project's net profits (the net profits of the project company and its subsidiaries and controlled entities, whether of "Qatari Diar" or the project company), after full recovery of the recoverable investment cost in accordance with the provisions of the agreement.
Housing land accounts for about 60% of the total area, in addition to service areas not exceeding 15%, and roads, squares, and green and open spaces of about 25%. There is no industrial component on the project land, and the land will be handed over free of all encumbrances in two main phases, each with a number of sub-phases.
Madbouly stressed that the Egyptian state continues to work very seriously to take the necessary measures and decisions to attract and increase the flow of foreign direct investment, based on the fact that such projects provide integrated development that achieves many goals, including providing the opportunity to develop land and establish new urban projects, as well as providing more job opportunities for Egyptian youth. In addition, these investments contribute to supporting the growth of the national economy, along with the returns these projects generate for investors as they reap the fruits of their investment projects.
Abdullah bin Hamad bin Abdullah Al-Attiyah said: "The project represents a strategic step toward strengthening the position of Egypt's North Coast as an integrated global destination, and embodies the State of Qatar's commitment as a partner in supporting the Egyptian government's efforts to achieve sustainable development and operate coastal areas year-round."
He noted that the project is one of the most prominent investment projects in the region, with an estimated investment of about $29.7 billion, and is expected to provide more than 250,000 direct and indirect jobs. The project embodies Qatari Diar's confidence in the strength of the Egyptian economy and its belief in the feasibility of investing in its exceptional geographical location.
Eng. Ali Mohammed Al-Ali, CEO of Qatari Diar, affirmed that the "Alam El-Roum" project represents a new step in developing exceptional destinations in Egypt, and is part of a series of strategic investments focusing on tourist destinations of high economic value.
He added that the project will be a milestone in the development of the North Coast and a global destination that redefines tourism standards on the Mediterranean, through a development extending over more than 20 million square meters, with a hotel capacity exceeding 4,500 rooms.
He explained that the project will be implemented through the project company wholly owned by Qatari Diar, in coordination with the New Urban Communities Authority to ensure the design complies with the best international standards, according to the official Facebook page of the Egyptian Cabinet.
