Gulf money is extending its reach along Egypt’s coastlines—northwards on the Mediterranean Sea and eastwards on the Red Sea—amid an Emirati-Saudi-Qatari struggle to secure the largest share of a valuable prize.

From Ras Al-Hikma to Alam Al-Rum, and from Marassi Red to Ras Gamila, Gulf states are pouring billions of dollars into investments in massive real estate and tourism projects along Egypt’s shores.

Financial and economic experts are divided between supporters and opponents, but questions impose themselves: why is the direction of Gulf investment in Egypt turning towards real estate and tourism projects? What lies behind the Gulf competition for Egypt’s shores? And are there economic risks to the Egyptian economy as a result?

Mega Projects

The UAE took the lead in penetrating Egypt’s North Coast by concluding a massive deal to purchase and develop the city of Ras Al-Hikma in October 2024, valued at $35 billion, with the Emirati Modon Holding appointed as the project’s master developer.

Along similar lines, and some 50 kilometres from the city of Ras Al-Hikma, Aldiar, owned by the sovereign wealth fund Qatar Investment Authority, acquired 5,000 feddans in the Alam Al-Rum area in November last year, for $3.5 billion in cash, in addition to expected investments worth $26.2 billion. Under the deal, the Egyptian government is to receive an in-kind component comprising 400,000 square metres of real estate units, with an estimated value of $1.8 billion, as well as 15 per cent of the project’s net profits, according to statements by Egypt’s Minister of Housing, Sherif El-Sherbiny.

The list of competitors on Egypt’s shores includes an alliance between the Saudi company City Stars and the Emirati firm Emaar Misr to develop the Marassi Red tourism project on the Red Sea coast, with total investments reaching $20 billion, under an agreement signed with the Egyptian government in September last year.

READ: UAE in talks to buy Egypt coastline for $22bn 

Competitors are awaiting a decision on Saudi Arabia’s Ras Gamila deal on the Red Sea, which appears to be stalled due to the low value of the Saudi offer, the lack of agreement between the two sides over the financial terms, and Cairo’s refusal to sell outright without securing future........

© Middle East Monitor