Egypt seeks GCC investment boost for tourism development
Egypt is embarking on an ambitious journey to revitalize its tourism sector, with a focus on attracting investments from the Gulf Cooperation Council (GCC) countries. During her participation at the Arabian Travel Market (ATM) 2024, Dr. Ghada Shalaby, Egypt’s vice minister for tourism at the Ministry of Tourism and Antiquities, discussed the Egyptian government’s plans to attract more investments from the GCC to develop tourist destinations across the country.
Shalaby highlighted areas such as the North Coast, the South Sinai region, Luxor and Aswan that offer attractive investment opportunities for foreign investors. Moreover, she highlighted Egypt’s goal of attracting 30 million tourists by 2028 and additional funding for more tourism development projects.
In addition, Shalaby revealed that the total number of tourists visiting Egypt during the first four months of 2024 increased by 27 percent, which reflects the sector’s growth and recovery despite regional and economic challenges.
During his participation at ATM 2024, South Sinai governor, Major General Dr. Khaled Fouda, revealed that Egypt is developing multiple tourist areas in Nuweiba, Saint Catherine and Dahab in South Sinai. He reiterated Egypt’s commitment to developing its coastline and attracting new markets of tourists from around the world.
FDI’s role in Egypt’s outlook
Recent developments signal positive momentum for Egypt’s economy. Fitch Ratings recently revised the country’s outlook from stable to positive, citing stronger foreign direct investment (FDI) and additional foreign capital. Key initiatives, such as the $35 billion Ras Al Hekma deal and an $8 billion financial support package from the IMF, $1 billion of which will go to tourism, underscore Egypt’s attractiveness to foreign investors.
In light of geopolitical tensions and economic struggles, Egypt has faced a host of challenges in the tourism sector. However, with the prospects of easing tensions, Egypt aims to focus on tourism to achieve its ambitious targets of increasing tourism inflows by 20 to 25 percent and more than doubling room inventory, from 222,716 currently to 500,000 in less than five years.
Investment incentives
To facilitate FDI inflows, Egypt has introduced multiple incentives including the golden licenses. These licenses streamline the investment process by providing approval for land acquisition and project operation without multiple government approvals. Additionally, investors benefit from tax relief, customs waivers and import charge reductions, further enhancing Egypt’s appeal as an investment destination.
Egypt’s ambitious plans to attract GCC investment demonstrate its commitment to revitalizing the tourism sector and driving economic growth. With a favorable economic outlook and a proactive approach to investment facilitation, Egypt presents promising opportunities for investors seeking to capitalize on the country’s tourism potential.