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| Investing in luxury real estate in Egypt |
Three Gulf funds are looking to seize opportunities in the Egyptian real estate sector with investments exceeding EGP 80 billion.
Three Gulf real estate funds are studying a range of investment opportunities in the Egyptian real estate sector with investments exceeding EGP 80 billion, according to an official close to the anticipated deals. The official explained that the three funds, belonging to Saudi Arabia, the UAE, and Kuwait, include Abu Dhabi Capital, a fund affiliated with the Saudi company Sumou Holding, and a joint Kuwaiti-Qatari fund.
The source indicated that the current studies are focusing on selected projects in various areas along the Mediterranean and Red Sea coasts, as well as downtown Cairo, which is considered one of the most attractive investment destinations at present.
"The three funds are currently preparing feasibility studies for potential projects to be implemented in cooperation with the Egyptian government in order to select the best opportunities in terms of demand and profitability," the official stated.
The official described downtown Cairo as one of the most important areas of interest to Gulf funds at present, explaining that intensive discussions are underway with government entities to study the most suitable investment opportunities within this vital area. He added that the focus is on acquiring land in the city center and along the Nile, in preparation for establishing major tourism and hotel projects.
Earlier, Emirati businessman Mohamed Alabbar, founder of Emaar Properties, expressed his keen interest in seizing promising opportunities in downtown Cairo and proposed establishing a fund comprising Egyptian and Arab investors to develop the area prudently without seeking excessive profit margins.
In addition to Alabbar, a consortium including Saudi Arabia's Sumou Holding, Egypt's Adair International, and the Egyptian companies Midar and Hassan Allam announced a study to invest up to $1 billion in a real estate project in downtown Cairo.
Opportunities on the North Coast
The official noted that the North Coast region is also emerging as a preferred destination for Gulf funds seeking to capitalize on opportunities in Egypt, given the high demand, particularly following the government's urban development initiatives and significant infrastructure improvements.
The North Coast has enjoyed increasing demand from both local and international investors for years and is considered one of the most important areas for real estate exports, according to the official.
Last year witnessed the largest direct investment deal in Egypt's history on the North Coast, following the acquisition by the Emirati holding company ADQ of the rights to develop the Egyptian city of Ras El Hekma in a deal valued at $35 billion.
The official also indicated that the Red Sea region is attracting the attention and being studied by the three Gulf funds, especially after the launch of the Marassi Red project, which is being developed through a Saudi-Emirati partnership.
He pointed out that the West Cairo area is also attracting increasing interest from Gulf real estate funds, most notably the Saudi company Sumou Holding, which is currently studying investment opportunities in hotel projects in the Sheikh Zayed area and the vicinity of the Grand Egyptian Museum.
The company aims to capitalize on the anticipated momentum following the museum's opening, in addition to the proximity to Sphinx International Airport and the promising opportunities it offers in the tourism and accommodation sectors. The official predicted that the first of these anticipated deals would be finalized by the beginning of 2026, without disclosing further details due to the confidentiality of the negotiations.
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