The Saudi group has officially presented a proposal to the Cabinet, outlining its plan to develop around 10 hotels in the Sharm El-Sheikh area. These hotels will range from 4 to 5 stars and aim to offer a total of 3,000 hotel rooms.
Saudi’ Ajlan & Bros Holding Group intends to invest $1.5 billion in the initial phase to establish tourism projects in the Ras Jamila region of Egypt, which is situated along the Red Sea coast, according to sources cited by Asharq Bloomberg.
The Saudi group has officially presented a proposal to the Cabinet, outlining its plan to develop around 10 hotels in the Sharm El-Sheikh area. These hotels will range from 4 to 5 stars and aim to offer a total of 3,000 hotel rooms.
It's important to note that the initial investment will primarily focus on the hotel infrastructure and excludes the valuation of the land, as per the sources.
The successful completion of this deal is linked to ongoing negotiations for other projects in Egypt. All contracts related to these projects will be finalized simultaneously.
Additionally, the group has made an offer to acquire companies participating in Egypt's IPO program. These negotiations are expected to be finalized within a span of 6 months.
Egypt's IPO program involves a list of 35 state-owned companies that are being offered to strategic investors, the public, or both, with the aim of generating foreign currency as part of the government's policy.
In February, the Minister of Finance, Mohamed Maait, expressed Egypt's goal of attracting $6.5 billion through its IPO program in 2024.
This recent deal follows the investment agreement between Egypt and the UAE, wherein the Abu Dhabi Developmental Holding Company (ADQ) acquired the development rights for the Ras El Hekma project.
It's worth highlighting that Ras El Hekma deal represents Egypt's largest foreign investment, totaling $35 billion.
