Dubai-based Emaar Properties has won an auction organised by the Egyptian government to buy a large strip of real estate on Egypt’s Mediterranean coast for EGP1bn (US175m, £91.7m, 136m euro).
The 625 hectare (1,560 acre) site will be used for a development that will include two luxury hotels, a number of private residencies, a marina, a golf course, a mosque, a helipad and various sports facilities.
Emaar will spend EGP10bn (US$1.74bn, £912m, 1.35bn euro) to develop the site, which is expected to be completed five years after receipt of the land.
Competitors in the auction included Egypt’s Orascom Hotels and Development and the Talaat Mustafa Group, an Egyptian real estate firm.
Dr Nader Mohamed, executive director of international operations at Emaar, said: “In building our company’s international portfolio, Egypt is of key importance to us. We are committed to developing value-added projects to the country with a principal focus on tourism by providing visitors with luxurious facilities and world-class leisure amenities.”
Emaar has also recently announced a number of other major projects in Egypt which include an integrated community in downtown Cairo and a waterfront redevelopment project for the Alexandrina Bibliotheca.
Egyptian authorities are hoping to develop the country’s north coast beaches in order to boost tourist numbers to around 14 million people by 2011.
Tourism is reportedly worth around 10 per cent of Egypt's economy a year, being worth more than EGP40.5bn (US$7bn, £3.6bn, 5.4bn euro). Details: www.emaar.ae
