Saudi-Egyptian Alliance Establishes Real Estate Fund

A coalition of Saudi and Egyptian investors plans to establish a real estate investment fund named “Asl” in both Egypt and Saudi Arabia, following the acquisition of two companies in the real estate development and contracting sectors—one Egyptian and one Saudi—in preparation for launching the fund’s operations in the Egyptian market. The fund aims to inject new investments into the Egyptian market worth up to 1 billion Saudi riyals (equivalent to $266.7 million) within a year, through Asl Holding, as part of a plan to expand into several sectors, with real estate development, hospitality, and hotels at the forefront, according to Hisham El-Sharbini, chairman of the board of Asl Holding.

El-Sharbini told Arabiya Business that the new company acquired last week the Egyptian firm Zurich Real Estate Development and the Saudi Arabian Al-Kayan Technical Arab Contracting Company, with total investments estimated at around 50 billion Egyptian pounds ($1 billion). He added that Asl Holding is being established in Egypt to develop and manage the projects of the acquired companies, noting that the company’s portfolio currently includes seven projects distributed across several areas, including New Damietta, New Mansoura, a 35-acre project in New Cairo, and projects in Sheikh Zayed.

Ahmed Attia, CEO of Asl Holding, stated that the company is preparing to launch a new project in the Fifth Settlement next October, with another project to be launched in Sheikh Zayed City later this year, as part of its expansion plan in the Egyptian real estate market. He noted that the company is considering geographic expansion toward the Red Sea region, while placing greater emphasis on the hospitality and hotel sector, explaining that the Egyptian market still suffers from a significant shortfall in hotel supply, estimated at around 5,000 hotel units.