Saudi-Egyptian Investor Alliance Injects $266.7 Million into Egypt

(Arabic) – A consortium 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 the other Saudi, paving the way for the fund to commence 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, primarily real estate development, hospitality, and hotels, according to Hisham El Sherbini, Chairman of the Board of Asl Holding.

El Sherbini stated that the new company acquired the Egyptian firm “Zurich Real Estate Development” and the Saudi firm “Al Kiyam Al Fanniya Al Arabiya for Contracting” last week, with total investments estimated at approximately 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 and New Mansoura, alongside a 35-acre project in New Cairo, and projects in Sheikh Zayed.

Ahmed Attia, CEO of Asl Holding, explained 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 strategy in the Egyptian real estate market.

He noted that the company is considering geographical expansion toward the Red Sea region, while placing greater emphasis on the hospitality and hotel sector, pointing out that the Egyptian market still suffers from a significant shortfall in hotel supply, estimated at around 5,000 hotel units.

Attia added that Asl Holding aims to add approximately 1,000 hotel units to the Egyptian market over the next three years by developing new hotel and tourism projects, while moving toward contracting with international hotel brands to manage the company’s hotel units.

He stated that the expansion into the hospitality sector is part of the company’s strategy to capitalize on the growing demand for hotel and tourism units in Egypt, particularly in areas with strong tourism and investment potential.

He pointed out that Asl Holding is currently in the final stages of the procedures required to obtain approval from the Egyptian Financial Regulatory Authority (FRA) to convert into a holding company, which will support its plan to expand investments and manage a diverse portfolio of companies and projects in Egypt.

He emphasized that the Egyptian market represents a key pillar in the fund’s investment strategy in the coming phase, given the opportunities available in the real estate development, hospitality, and tourism sectors, as well as the need to inject new investments to meet the rising demand for real estate and hotel products.