Arab Finance: Gulf investments in Egypt remain long-term and are continuing, supported by confidence in the country’s growth prospects and resilience to regional developments, Tarek El Shazly, CEO of Gulf Egypt for Hotels and Tourism, said.

Speaking at the Cityscape 2026 summit, El Shazly noted that Egypt has strong fundamentals to serve as a regional investment hub, citing its geographic location, large domestic market, developing infrastructure and access to African and regional markets.

The human element and the Egyptian people represent the biggest investment opportunity, as Egyptian workers are key to building and developing large-scale projects, and domestic demand was a major driver of investment success, according to El Shazly.

El Shazly said Egypt’s tourism and investment sectors had demonstrated resilience, with around 9 million tourists visiting the country in the first half of 2026, up 4%.

Tourism revenues rose 14.9% to $14.4 billion from July through March of fiscal year (FY) 2025/2026, while net foreign direct investment inflows reached $13 billion during the same period, up 33% year-on-year (YoY), he said.

Gulf investors view Egypt as a safe, stable market with a large consumer base of more than 100 million to 120 million people, as well as more than 3,200 kilometers of coastline along the Mediterranean and Red Seas, in addition to the Nile and lakes, El Shazly said.

Government decisions and financing institutions were also supporting the investment environment, he said, adding that flexibility, sustainable demand and the ability to generate long-term value had become key considerations for investors.

Gulf Egypt’s 50 years of operations in the Egyptian market reflected the company’s long-term confidence in the country and its tourism and hospitality sectors, El Shazly added. The company’s portfolio currently includes about 840 hotel rooms and suites and provides more than 1,200 jobs.

Gulf Egypt’s planned project in Sharm El Sheikh reflects a shift in the hospitality sector toward integrated experiences and mixed-use destinations combining hospitality, residential and entertainment offerings, El Shazly said.

The project covers more than 354,000 square meters and has a 750-meter beachfront. It will include a luxury hotel, two residential complexes under international brands, a beach club and integrated entertainment components.

The company selected Sharm El Sheikh and Sinai for their natural and infrastructure advantages, moderate climate, improved road networks, and Sharm El Sheikh International Airport.

Gulf Egypt also plans to announce new and unconventional projects and products in Cairo that integrate hospitality with modern lifestyle offerings, El Shazly revealed.

The company has worked with international firms including HVS and JLL on feasibility studies and the master plan for the Sharm El Sheikh project, he said.

High financing costs, exchange-rate fluctuations and inflation remain among the main challenges facing the hospitality sector, El Shazly highlighted, while government incentives and measures to support tourism and increase hotel capacity are helping mitigate those pressures.

Accelerating project execution has become essential to counter inflation and avoid cost fluctuations while helping Egypt meet its target of attracting 30 million tourists, he explained. Delays increase investment risks, while faster completion allows projects to begin generating cash flows sooner and capitalize on current demand.

He added that changing tourist and investor behavior was pushing the sector away from traditional hotels toward projects focused on integrated experiences and mixed-use destinations.