Gulf cash is flowing to Egypt, with investors targeting hard assets rather than continuing the practice of providing financial aid to Cairo.
Qatar’s sovereign wealth fund is reportedly finalizing a $4 billion tourism project in Ras Alam El-Rum, east of Alexandria on the Mediterranean coast, as part of a broader plan to invest $7.5 billion in Egypt. Kuwait Foreign Petroleum Exploration Co. and Shell Egypt will begin an offshore gas project.
The moves are the latest in a wave of Gulf deals in Egypt’s energy and real estate sectors as Cairo aims to secure $42 billion in foreign direct investment this fiscal year. While Gulf cash has provided an economic lifeline, it has also sparked local concerns that it’s driving up property prices and changing the architecture of Egyptian cities, transforming districts into clones of Dubai.