Saudi and Egyptian firms sign $450 million hotel deal

The Swiss hotel and resort brand, owned and represented by Saudi Hospitality Development Group (HDG), aims to build eight hotels in Egypt as part of a management deal with Tharawat International Investment Corp. (HDG photo)
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Updated 25 February 2020

Saudi and Egyptian firms sign $450 million hotel deal

  • Total Saudi investments in Egypt have reached $54 billion

CAIRO: Egypt’s Tharawat International Investment Corp. has signed a $450 million deal with the Saudi Hospitality Development Group (HDG) to manage Swiss International.

HDG owns and represents the Swiss hotel and resort brand with its three brands: Swiss Spirit, Swiss International and Royal Swiss.

“Many of our investors are interested in investing in Egypt and we have started tourist projects mainly in Hurghada, Sharm El-Shiekh and Cairo,” Jamal Al-Hamed, chief development officer of Swiss International Hotels and Resorts, told Arab News.

Ahmed Awad, who is chairman of the board at Tharawat, said the company aimed to build eight hotels for the Swiss chain in two years with investments worth $450 million in Cairo, Hurghada, Sharm El-Sheikh and Marsa Alam on the northern coast, as well as Luxor and Aswan.

Awad said the company intended to invest in the management and operation of hotels in the administrative capital and the new city of El-Alamein.

Swiss International Group CEO, Nagy Al-Shiha, confirmed that the group aimed to reach 30 hotels by the end of 2020.

Al-Shiha said the group planned to build and manage 20 hotels in Egypt in addition to tourist resorts during the next five years.

“We started our long-term strategy to expand in Arab countries which includes Jordan and Egypt,” Al-Hamed said. “We are already present in all Gulf countries and, in the next period, our focus will be on north African countries. We aim for Tunisia, Algeria and Morocco but we will start first with Egypt.”

Economic and commercial relations between Egypt and Saudi Arabia have experienced continuous growth since the 1980s. Saudi investments in Egypt rank first among Arab countries and second globally.

Total Saudi investments in Egypt have reached $54 billion, including $44 billion in investments for Saudi companies or their Saudi partners in Egypt and $10 billion in investments from the Saudi government through the public investment fund.

According to the vice-chairman of the Saudi-Egyptian Business Council, Abdullah bin Mahfouz, the top sectors for Saudi investments are services, followed by industry, construction, real estate development, agriculture, communications, IT, tourism and banking.


Investors, scientists urge IEA to take bolder climate stance

Updated 33 min 8 sec ago

Investors, scientists urge IEA to take bolder climate stance

  • The energy agency’s head is under pressure to align its policies with the 2015 Paris accord goals

LONDON: Fatih Birol, the head of the International Energy Agency (IEA), faced renewed calls to take a bolder stance on climate change on Friday from investors concerned the organization’s reports enable damaging levels of investment in fossil fuels.

In an open letter, investor groups said an IEA report on options for green economic recoveries from the coronavirus pandemic, due out in June, should be aligned with the 2015 Paris accord goal of capping the rise in global temperatures at 1.5C.

The more than 60 signatories included the Institutional Investors Group on Climate Change, whose members have €30 trillion ($33.42 trillion) of assets under management, scientists and advocacy group Oil Change International.

“Bold, not incremental, action is required,” the letter said.

The Paris-based IEA said it appreciated feedback and would bear the letter’s suggestions in mind. It also said it had been recognized for leading calls on governments to put clean energy at the heart of their economic stimulus packages.

“We have backed up that call with a wide range of analysis, policy recommendations and high-level events with government ministers, CEOs, leading investors and thought leaders,” the IEA said.

Birol has faced mounting pressure in the past year from critics who say oil, gas and coal companies use the IEA’s flagship World Energy Outlook (WEO) annual report to justify further investment — undermining the Paris goals.

Birol has dismissed the criticism, saying the WEO helps governments understand the potential climate implications of their energy policies, and downplaying its influence on investment decisions.

FASTFACT

1.5°C

The 2015 Paris accord aims to cap the rise in global temperatures at 1.5C.

But campaigners want Birol to overhaul the WEO to chart a more reliable 1.5C path. The world is on track for more than double that level of heating, which would render the planet increasingly uninhabitable, scientists say.

The joint letter followed similar demands last year, and was published by Mission 2020, an initiative backed by former UN climate chief Christiana Figueres.