Tourism Egypt’s $21bn project to rival Europe’s top holiday destinations By Pramod Kumar July 3, 2024, 4:51 AM TMG Initial bookings for SouthMed reached $1.25 billion in 12 hours of pre-launch sales, Talaat Moustafa Group said Cairo-based Talaat Moustafa Group (TMG) is investing $21 billion to develop a new tourism project on Egypt’s Mediterranean coast to compete with Europe. Named SouthMed, the development will cover 23 million square metres and is expected to generate sales of $35 billion, Reuters reported, citing CEO Hisham Talaat Moustafa. Initial bookings reached EGP60 billion ($1.25 billion) in 12 hours of pre-launch sales, TMG said in a filing to the Egyptian stock exchange on Tuesday. NewsletterGet the Best of AGBI delivered straight to your inbox every week NewsletterGet the Best of AGBI delivered straight to your inbox every week The SouthMed project is being developed to rival the most luxurious international destinations in the northern Mediterranean, such as the beaches of southern France, Italy, Spain and Greece. The government has strategically shifted its focus towards major tourist, entertainment and service attractions to maximise returns and unlock significant new opportunities by developing areas such as the Ras El Hekma and SouthMed projects, the statement said. The new project will include residential, retail, restaurants, golf courses and entertainment facilities, the developer said on its website. Egypt hails record tourist numbers despite regional conflict War and tensions mean Egypt dials down tourist forecast Egypt to host more Turkish tourists as relations improve The project aligns with Egypt’s mega plan to develop the north coast with the aim to double the number of tourists, Egypt Today newspaper reported, citing prime minister Mostafa Madbouly. Egypt in February signed a deal with ADQ, an Abu Dhabi sovereign wealth fund, to build the “largest new city” in Egypt to promote tourism and drive economic growth. In May Egyptian housing minister Assem El Gazzar said ADQ would begin building the infrastructure for its Ras El Hekma development on the country’s north coast before the end of this year. In January, ADQ and Abu Dhabi-based ADNEC Group signed deals to acquire a 40.5 percent stake in TMG Holding’s hospitality arm, ICON Group, through a capital increase. ADQ and ADNEC agreed to invest through a special purpose vehicle, with 49 percent equity ownership by ADQ and 51 percent equity ownership by ADNEC. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
