Egypt Attracts More Than $1.1bn in New Hospitality Investment for Sharm El Sheikh

International and regional investors have committed more than US$1.1 billion (approximately EGP55 billion) to new hospitality developments in Sharm El Sheikh, marking a significant influx of private capital into one of Egypt’s leading resort destinations. The pipeline is led by a strategic partnership between Dubai-based The First Group and Egypt’s Pulse Developments, which together will invest more than US$670 million in an integrated hospitality platform that will roll out three projects over the next four years and add more than 3,200 hospitality units.

"The government is targeting 30 million international visitors annually by 2030," the announcements note, underscoring the broader national objective behind the investment wave.

The First Group and Pulse Developments detailed a trio of developments that together account for the bulk of their US$670 million-plus commitment: the US$100 million Sharm Oasis project in Nabq; a second hotel in Naama Bay valued at up to US$70 million; and a flagship development in Al Montazah with investments exceeding US$500 million. Collectively these projects will deliver leisure and hospitality capacity across prime Sharm locations and will be operated under internationally recognised brands as part of an integrated hotel development, management and operations platform.

• Partnership headline investment: more than US$670 million
• Total announced pipeline for Sharm El Sheikh: over US$1.1 billion (~EGP55 billion)
• Sharm Oasis (Nabq): US$100 million
• Naama Bay hotel: up to US$70 million
• Al Montazah flagship: in excess of US$500 million
• Gulf Egypt for Hotels & Tourism (URC subsidiary) investment: more than EGP20 billion over 354,458 sqm
• Tourism revenues (2024/25): US$15.3 billion

Separately, Gulf Egypt for Hotels & Tourism, a subsidiary of Kuwait’s United Real Estate Company (URC), announced plans to invest more than EGP20 billion in an integrated tourism destination spanning 354,458 square metres. International advisory firms HVS and JLL have been appointed to prepare market studies and the master plan for the mixed-use development, which will combine hotels, branded residences, wellness and entertainment facilities.

Tourism is already a central foreign-currency earner for Egypt, generating US$15.3 billion in revenues during 2024/25. The announced projects are intended not only to expand lodging capacity but to stimulate construction activity, create employment opportunities and boost foreign currency inflows through higher visitor numbers and increased private-sector participation.

Sharm El Sheikh remains a magnet for long-term investment because of its year-round demand, established international air links, mature hospitality infrastructure and global reputation for leisure, diving and conference tourism. Those structural advantages give developers what officials describe as a "comparatively lower-risk environment" than many emerging resort destinations and support sustained hotel occupancy levels throughout the year.

Outlook: While the commercial success of these developments will hinge on continued growth in global travel demand, sustained airline connectivity and regional stability, the scale and diversity of the announced investments signal persistent investor confidence in Egypt’s hospitality market. If realised, the new hotels and mixed-use projects will materially expand Sharm El Sheikh’s accommodation base and help the country progress toward the stated objective of 30 million international visitors by 2030, while intensifying competition with Gulf destinations that are simultaneously accelerating large-scale hospitality builds.