Egypt- Cairo-based Talaat Moustafa Group (TMG) is embarking on a groundbreaking $21 billion investment to develop a premier tourism project on Egypt’s Mediterranean coast. Named SouthMed, this ambitious development is set to rival Europe’s most luxurious destinations, sprawling across 23 million square meters. CEO Hisham Talaat Moustafa announced that the project is expected to generate sales of $35 billion. Impressively, TMG reported initial bookings worth EGP 60 billion ($1.25 billion) within just 12 hours of pre-launch sales.
SouthMed is designed to compete with the famed beach destinations of southern France, Italy, Spain, and Greece. The Egyptian government is strategically focusing on major tourist, entertainment, and service attractions to maximize returns and unlock significant opportunities in areas like Ras El Hekma and SouthMed. The project will feature residential units, retail spaces, restaurants, golf courses, and entertainment facilities, positioning it as a comprehensive luxury destination.
This initiative aligns with Egypt’s broader plan to develop its north coast and double the number of tourists by 2030. Prime Minister Mostafa Madbouly emphasized that the north coast’s moderate climate and topography make it an ideal area for future population growth. The government is keen to encourage Egyptian youth to settle in the region by providing ample job opportunities through large, integrated projects.
In February, Egypt signed a deal with Abu Dhabi’s ADQ to build the “largest new city” in the country to promote tourism and drive economic growth. ADQ, along with Abu Dhabi-based ADNEC Group, also acquired a 40.5% stake in TMG’s hospitality arm, ICON Group, through a capital increase. The investment will be facilitated through a special purpose vehicle, with ADQ holding 49% equity ownership and ADNEC holding 51%.
Prime Minister Madbouly highlighted the project’s potential to create 1.6 million direct job opportunities in construction and related industries. This development is seen as a model of partnership between the state and the private sector, demonstrating the government’s commitment to encouraging private sector involvement in national economic development.
At a recent conference, Hisham Talaat Moustafa underscored Egypt’s drive to attract global investments and develop the North Coast through projects like Ras El Hekma and SouthMed. The Ras El Hekma project alone saw a $35 billion investment from ADQ, marking a significant step towards establishing it as a leading holiday destination and financial hub with world-class infrastructure.
SouthMed complements the Ras El Hekma project, with both expected to significantly boost foreign tourism and foreign currency inflows. These projects are part of Egypt’s strategy to enhance its tourism sector, aiming to attract millions of high-spending tourists from Europe and Arab countries. The government hopes that these initiatives will not only draw international visitors but also encourage Egyptians to settle permanently in the region, thus supporting the country’s economic and demographic growth.
In summary, the SouthMed project by Talaat Moustafa Group marks a significant milestone in Egypt’s tourism and real estate sectors. With an investment of $21 billion and projected sales of $35 billion, it underscores the country’s potential as a luxury destination comparable to Europe’s finest. The project’s rapid pre-launch sales and the strategic government focus on the north coast highlight Egypt’s commitment to leveraging its natural and economic assets to attract global investments and enhance its tourism infrastructure.