International and regional investors have committed more than US$1.1 billion (approximately EGP55 billion) to new hospitality developments in Sharm El Sheikh, reinforcing Egypt’s strategy to expand tourism capacity and attract higher international visitor numbers as the sector continues to underpin economic growth and foreign currency earnings.
The investment pipeline is led by a strategic partnership between Dubai-based The First Group and Egypt’s Pulse Developments, which plan to invest more than US$670 million in an integrated hospitality platform combining hotel development, management and operations under internationally recognised brands.
The partnership will launch three projects in Sharm El Sheikh over the next four years, adding more than 3,200 hospitality units. The developments include 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.
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. The mixed-use project will combine hotels, branded residences, wellness and entertainment facilities, with international advisory firms HVS and JLL appointed to prepare market studies and the master plan.
Tourism remains one of Egypt’s largest sources of foreign currency earnings, generating US$15.3 billion in revenues during 2024/25, according to official government figures. The government is targeting 30 million international visitors annually by 2030, supported by expanded hotel capacity, improved aviation connectivity and increased private-sector investment across the country’s principal tourism destinations.
Sharm El Sheikh continues to attract long-term investment owing to its year-round tourism demand, established international air links, mature hospitality infrastructure and global reputation for leisure, diving and conference tourism. These advantages provide developers with a comparatively lower-risk environment than many emerging resort destinations while supporting sustained hotel occupancy throughout the year.
Beyond increasing accommodation capacity, the projects are expected to stimulate construction activity, create employment opportunities and generate additional foreign currency revenues through higher visitor numbers and stronger private-sector participation in the tourism economy.
The announcements also come amid intensifying regional competition for tourism investment as Gulf countries accelerate large-scale hospitality developments. Nevertheless, Egypt continues to leverage its established tourism infrastructure, internationally recognised destinations and competitive development costs to attract long-term investment into the sector.
While the commercial performance of the projects will depend on sustained growth in global travel demand, strong airline connectivity and regional stability, the scale of the announced investments demonstrates continued investor interest in Egypt’s hospitality market. Collectively, the developments illustrate how Egypt is expanding tourism capacity through private capital while positioning the sector as a central pillar of long-term economic growth, employment and foreign currency generation.
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