Sovereign Fund of Egypt Plans 2,600 New Hotel Rooms in Cairo

EGYPT’S SOVEREIGN FUND OF EGYPT (SFE) LEADS URBAN RENAISSANCE WITH 2,600 NEW HOTEL ROOMS. TOURISM TARGETS DOUBLE WITH AMBITIOUS 30 MILLION ANNUAL VISITOR GOAL. INTERNATIONAL COLLABORATIONS AND STRATEGIC ASSET TRANSFORMATIONS DRIVE EGYPT’S SOVEREIGN FUND SUCCESS.

In a strategic move, the Sovereign Fund of Egypt (SFE) unveils plans for downtown Cairo, spearheading the creation of 2,600 hotel rooms, 15,000 square meters of green spaces, and the restoration of historic buildings. CEO Ayman Soliman disclosed these ambitious initiatives during a parliamentary committee meeting.

During the Parliamentary Planning and Budget Committee, Soliman stated that the SFE has been the state’s investment & development arm. With a vision to attract 30 million tourists annually by 2028, Egypt aims to double the current figure of 15 million.

Minister of Tourism Ahmed Issa emphasizes the need for doubling hotel capacity, offering affordable air travel, and diversifying tourist products. Egypt witnessed a notable 46.2% increase in tourist numbers, reaching 11.7 million in 2022. H1 2023 recorded 7 million tourists, with expectations to reach 15 million by year-end.

SFE’s Urban Restructuring, Luxury Upgrades, and Financial Triumph

Seven assets have already transferred to SFE, with more planned for downtown Cairo. A transformative plan includes repurposing the former Ministry of Interior headquarters into a multi-functional complex, housing a tech hub, a French university, serviced apartments, and a hotel through a deal with A Developments.

Strategic agreements with a US consortium, led by Oxford Capital Group, Global Ventures Group, and Al-Otaiba Investments, involve a $3.5 billion deal to upgrade Mugamma Al-Tahrir. This 14-storey building, owned by SFE, is set to transform into a luxury hotel. With a $200 million investment, it aims to boost Egypt’s global appeal.

As of July 2023, SFE’s assets have soared to an impressive $12 billion, marking a significant financial milestone. This signals the success of Egypt’s concerted efforts in leveraging its sovereign fund for economic development and tourism growth.