Qatari Diar, the real estate arm of Qatar’s sovereign wealth fund, has broken ground on the first phase of a $29.7 billion luxury development along Egypt’s northwestern Mediterranean coast.

The project aims to transform a remote stretch of shoreline near Marsa Matrouh into a year-round world-class city.

The first phase of the Alam El-Roum development spans 4 million square metres and carries investments of roughly EGP220 billion ($4.4 billion). Construction is now underway following a site visit by Egyptian Prime Minister Mostafa Madbouly on Sunday, 9 August 2026. Handover of the first phase is scheduled for 2030.

The initial phase will feature four hotels with more than 1,000 rooms, a 50-berth marina, a 2-kilometre beachfront promenade, and 195,000 square metres of swimmable artificial lagoons. Open spaces account for approximately 85 percent of the total land area.

The project’s overall masterplan includes 22 kilometres of seawater-connected lagoons, an 18-hole championship golf course, and more than 3,500 hotel rooms across internationally branded resorts.

“Phase One embodies our vision of creating a world-class coastal city that introduces a new lifestyle on the Mediterranean, guided by the highest international standards of urban planning and sustainability,” said Sheikh Hamad bin Talal Al-Thani, Chief Executive Officer of Qatari Diar. “From the earliest stages, we have partnered with leading global experts in master planning, marina design, hospitality consulting, landscape architecture, and infrastructure engineering to ensure the project meets international best practices.”

The development spans 20.58 million square metres across 7.2 kilometres of Mediterranean waterfront in Matrouh Governorate, approximately 480 kilometres northwest of Cairo. It is envisioned as a fully integrated coastal city combining residential, hospitality, commercial, cultural, entertainment, educational, and healthcare components.

The total investment package includes $3.5 billion in direct cash payments to the Egyptian government, with the remainder coming through in-kind investments. Qatari Diar signed the project agreement with Egypt’s New Urban Communities Authority in November 2025.

The first phase alone is expected to generate approximately 30,000 direct and indirect jobs, with the full project projected to create over 250,000 jobs upon completion.

“We are implementing Phase One according to a carefully structured timeline targeting starting delivery in 2030,” Al-Thani said. “The project will help attract further investment, strengthen Egypt’s tourism sector, and capitalise on the exceptional advantages of the North Coast.”