MIDAR, the master developer behind Mostakbal City, has entered into a strategic partnership with Saudi Arabia’s Sumou Investment, along with local powerhouses ADEER International and Hassan Allam Holding. This collaboration aims to channel $2 billion into hospitality and leisure projects along the Nile in Cairo, as well as within MIDAR cities.
The memorandum of understanding (MOU) was inked at MIDAR’s administrative headquarters in Mostakbal City. Signing the agreement were Ayman ElKousey, Managing Director and CEO of MIDAR, Abdulrahman Al-Qahtani, Managing Director of Sumou Investment, Bassel El-Serafy, CEO of ADEER International, and Mohamed Medhat Hassan Allam, Vice Chairman and Managing Director of Hassan Allam Properties.
The partnership reflects a broader strategy to bolster Egypt’s tourism and real estate sectors, leveraging Cairo’s unique geographical position along the Nile. This investment is expected to enhance the city’s infrastructure and appeal, potentially increasing tourist influx and creating thousands of jobs.
Dr. Ahmed Kamaly, an economist at the American University in Cairo, highlights the significance of such investments: “This initiative is not only a testament to Egypt’s robust investment climate but also a catalyst for economic growth, enhancing the country’s global competitiveness in the real estate market.”
The real estate sector in Egypt has recently seen a surge in foreign investment, with figures from the Central Bank of Egypt indicating a 12% rise in foreign direct investment in real estate in the last year alone. Experts attribute this growth to strategic partnerships and government reforms aimed at making Egypt more attractive to investors.
A report from JLL, a global real estate services firm, forecasts that Cairo’s real estate market will grow by 10% annually over the next five years, driven largely by international partnerships and infrastructural developments.
An insider source reveals that the projects under this MOU will include luxury hotels, entertainment hubs, and mixed-use developments, aiming to transform the Nile’s picturesque banks into a world-class tourist destination. These developments are anticipated to commence in early 2024, with phased completions over the next decade.
