Qatar taps Egypt’s fund for investment

The Qatar Investment Authority (QIA) is currently engaged in discussions with The Sovereign Wealth Fund of Egypt (TSFE) regarding a potential investment in seven historic hotels in Egypt. This represents a significant opportunity for both countries, as diplomatic relations were restored in 2021 following a prolonged dispute. Two sources familiar with the matter, who chose to remain anonymous, confirmed that the QIA is considering acquiring a stake of up to 30% in these hotels, although the specific hotels were not disclosed.

While the QIA, with assets worth $445 billion, has been diversifying its investments into sectors such as technology, healthcare, and public and private markets, the sources indicated that the hotel deal would align with its existing portfolio and investment expertise. The hotels would be valued not only as real estate assets but also for their historical significance, with some dating back to the 1800s. The QIA has made notable investments in iconic properties like London’s Shard skyscraper and Harrods department store.

Among the potential hotels for investment is the Old Cataract in Aswan, which overlooks the Nile and is believed to have inspired Agatha Christie’s novel “Death on the Nile.” The Egyptian government has previously expressed interest in selling stakes in such hotels. The reestablishment of diplomatic relations between Egypt and Qatar, along with efforts led by Saudi Arabia, has contributed to a warming of relations between the two countries. This investment opportunity holds promise for both parties, particularly as Egypt grapples with an economic crisis and a devalued currency due to the impact of Russia’s invasion of Ukraine.

Last year, Qatar pledged $5 billion to invest in Egypt’s economy and has emphasized its commitment to supporting regional economies through commercial investments rather than direct financial aid. The potential investment in historic hotels aligns with this strategy and represents a landmark opportunity for Qatar and Egypt to strengthen their economic ties and foster further cooperation.

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