Qatar negotiates with Egypt to buy shares in 7 state-owned hotels

The Qatar Investment Fund (QIA) is reportedly in discussions with Egypt to purchase a 30% stake in seven state-owned hotels, according to regional media.

The Qatar Investment Fund (QIA) is reportedly in discussions with Egypt to purchase a 30% stake in seven state-owned hotels, according to regional media. Qatar's sovereign wealth fund manages over $300 billion in assets and is looking to sell shares from the Sovereign Fund of Egypt (TSFE). This news comes as no surprise as Qatar has long been interested in acquiring hotels in Egypt for both their real estate and historical value.

Qatar negotiates with Egypt to buy shares in 7 state-owned hotels ph: Marriott Mena House

Egypt’s Tourism, Hotel and Cinema Joint Stock Company, a state-owned enterprise, is the current owner of the large and well-known hotels, including Marriott Mena House, Cairo Marriott, Shepherd, Steigenberger Cecil, Sofitel Winter Palace, Legend Old Cataract Aswan, and Cosmopolitan hotels. The hotels, situated in some of Egypt’s most attractive locations, provide stunning views and historical qualities that have made them top tourist destinations.

Some of these hotels were built in the late 1800s and have been owned by the Egyptians for many years. The Qatar Investment Fund clearly sees this acquisition as a strategic investment opportunity that can bring substantial returns, not only in terms of financial value but also historical and cultural.

The move also comes as the Egyptian government pushes ahead with the divestiture of 250 state-owned companies, including many large and famous hotels, as part of its privatization program to address the severe shortage of foreign currency, mainly the dollar. The move is in line with the Egyptian Government's commitment in a 46-month credit program worth $3 billion with the International Monetary Fund (IMF).

This new investment also emphasizes the strong economic and trade relationship between Qatar and Egypt, which have strengthened ties in all fields, especially economic and investment. Qatar is the third-largest Arab investor in Egypt, with 160 operating companies investing nearly $2 billion in the country. Last year, Qatar's Finance Minister Ali Al-Kuwari announced the Gulf nation's commitment to investing $5 billion in the Egyptian economy in the near-term to support the country's growing infrastructure needs.

The acquisition of the seven state-owned hotels by the Qatar Investment Fund is likely to generate new jobs and increase tourism in Egypt, providing valuable support to the country’s recovering economy. It is an exciting time for the hospitality industry, and investors are positioning themselves to be part of the rapidly growing tourism sector in Egypt.