Alam El-Roum: Turning Egypt’s North Coast into a Magnet for FDI

Updated 11/16/2025 9:00:00 AM

Egypt's path to economic resilience is strategically mapped along its Mediterranean coastline. In recent years, the government has launched a robust reform agenda aimed at attracting robust foreign direct investment (FDI) into high-value sectors, such as real estate, tourism, and infrastructure. This drive is not merely about attracting capital, it is about establishing new, integrated urban centers that diversify the economy and secure sustainable foreign currency inflows.

The latest and perhaps most significant milestone in this strategy is the massive Alam El-Roum project in Matrouh governorate on Egypt’s North Coast.

Redefining Coastal Development

The Alam El-Roum project represents a significant milestone in Egypt’s pursuit of FDI across vital sectors. Economist Ahmed Zayed notes that the project “aligns closely with Egypt’s broader strategy to attract large-scale FDI, particularly in real estate, tourism, and infrastructure. The deal reinforces investor confidence and demonstrates Egypt’s commitment to creating long-term partnerships with Gulf sovereign funds.”

Situated in Matrouh along the North Coast, the area has become central to Egypt’s coastal development strategy. Known for its pristine beaches and strategic proximity to both Europe and the Middle East, Alam El-Roum holds significant untapped opportunities for tourism and real estate growth.

Sherine Ghaly, an associate professor of economics at the Institute of National Planning, tells Arab Finance that Matrouh and the North Coast “have become a dream for both investors and tourists because of their prime location as a regional tourism hub, extensive government-led infrastructure development, and the growing demand for real estate and tourism.”

Over the last 10 years, Egypt has established itself as a key regional investment hub by capitalizing on its strategic location, demographic advantages, and reform-oriented economic policies.

“The government’s major spending on projects like the Alamein International Airport and new highway projects has contributed a lot to making the region accessible and attractive to both domestic and foreign capital,” Ghaly says. “This, in turn, is stimulating growth in real estate, tourism, and the services sector.”

Yet, what sets Alam El-Roum apart is not only its scale and strategic location, but its ambition to redefine coastal development. “Sustainability and smart urban planning are essential for projects such as Alam El Roum,” Ghaly explains. “They change the way the developmental model works from just a seasonal getaway into resilient communities that remain vibrant all year long and ensure ecological strength and attractive living conditions for both citizens and tourists.”

This approach reflects Egypt’s evolving development philosophy—one that prioritizes green infrastructure, resource efficiency, and data-driven city management to ensure long-term viability and livability.

Valued at $29.7 billion and backed by Qatari Diar, the Alam El-Roum deal exemplifies this vision.

“The project is linked to the renewal of a $4 billion in Qatari deposit at the Central Bank of Egypt (CBE), which supports external liquidity and helps stabilize Egypt’s balance of payments, both key factors for improving the country’s credit outlook,” Zayed explains.

He adds, “The project is likely to contribute to macroeconomic indicators, including FDI inflows, construction growth, and foreign currency reserves.”

The Project's Transformative Economic Potential

The Alam El-Roum development represents a transformative economic opportunity for Egypt, with wide-ranging benefits. As Zayed explains, “The project’s large scale, covering 4,900 acres around 20 million square meters along the Mediterranean coast, will create thousands of direct and indirect jobs in construction, services, and hospitality sectors.”

According to Zayed, the project’s composition—60% residential, 15% services, and 25% green spaces— has been designed to ensure sustained private-sector involvement. From real estate developers and infrastructure contractors to tourism operators and service providers, Alam El-Roum offers a platform for long-term investment in high-value sectors.

As Zayed notes, this structure “will help stimulate local supply chains and enhance private investment participation,” creating a dynamic ecosystem of growth and innovation.

On the other hand, the Alam El-Roum project is believed to strengthen regional partnerships. “Similar to the Ras El Hekma deal with the UAE, Alam El Roum could set a precedent for cross-border mega projects that blend sovereign investment with long-term real estate and tourism development. It signals a maturing model of economic cooperation in the region, one that balances capital inflows with sustainable development and infrastructure expansion,” Zayed adds.

Ghaly agrees, stating that “the Alam El Roum agreement and similar projects also contribute to strengthening Arab investment cooperation by enhancing Egypt's role as a stable regional hub for development and investment. It also provides a new forum for bilateral collaboration in development projects. This investment cooperation explains how economics can transform international relations.”

Ultimately, the Alam El-Roum project stands as a defining chapter in Egypt’s journey toward economic resilience and regional leadership. More than just a real estate or tourism venture, it embodies a strategic shift in how Egypt leverages its geographic assets, policy reforms, and international partnerships to build sustainable, high-impact urban ecosystems.

With its scale, structure, and sovereign backing, Alam El-Roum is expected not only to generate thousands of jobs and stimulate private-sector growth but also to reinforce Egypt’s credibility as a destination for long-term investment.

By Sarah Samir