Akam Al Rajhi Developments has signed a cooperation agreement with Absolute Hotel Services—one of the fastest-growing hospitality groups in Asia and Europe—to manage and operate the second hotel within its flagship D.O.S.E project on Egypt's North Coast. The new hotel will be operated under the U Hotels brand, marking the group's official entry into the Egyptian market. The partnership also includes the management of branded hotel residences under the "Jay by U" concept. Speaking on behalf of Minister of Tourism and Antiquities Sherif Fathy, Mohamed Amer—Head of the Central Administration for Hotel Establishments, Shops, and Tourist Activities—hailed the collaboration as a valuable addition to Egypt's hospitality sector. He noted that it aligns with the country's Vision 2030, which aims to double Egypt's licensed hotel room capacity from 230,000 to 460,000 by the end of the decade. Amer added that 2024 has already shown robust performance, with hotel occupancy rates surpassing 90% and increased investor interest from both domestic and international players. He highlighted recent incentives introduced by the Ministry of Tourism, including amendments to Law No. 8, allowing investors to acquire hotel licenses through a streamlined one-stop-shop system. The legislative updates now offer more flexibility, minimize bureaucratic obstacles, and encourage greater private sector participation. He also announced the rollout of a hotel support initiative allocating EGP 50bn in low-interest financing over a two-year period, which has already disbursed EGP 40bn to support approximately 50,000 hotel rooms. Additional initiatives are under review to further stimulate tourism investment and hotel development. Representing Minister of Investment Hassan El-Khatib and GAFI Chairperson Hossam Heiba, Ahmed Bediwy, Head of the Promotion Sector at the General Authority for Investment and Free Zones (GAFI), reaffirmed Egypt's position as one of the MENA region's most attractive investment destinations—particularly in tourism, a cornerstone of the national economy. Bediwy emphasized the sector's resilience, its contributions to SME growth and local development, and the government's continued efforts to enhance the investment climate through targeted incentives, infrastructure improvements, and legislative reform. He stressed that attracting 30 million tourists annually is a central objective of Egypt's Vision 2030, necessitating the expansion of tourism projects and hotel capacity. Commenting on broader regional cooperation, Bediwy highlighted the evolving global economic landscape as an opportunity for deeper economic ties between Egypt and Saudi Arabia, with tourism investment a key area for future collaboration. He encouraged Saudi businesses to explore Egypt's growing tourism sector and leverage its competitive advantages. Abdulwahab Al Rajhi, Chairperson of Al Rajhi Group and Co-founder of Akam Al Rajhi, stated that the agreement is part of the company's vision to deliver a distinctive, world-class development on Egypt's North Coast. He noted the significance of bringing U Hotels—a well-established global brand with a strong presence across Asia and Europe—into this landmark project. Essam Mansour, Chairperson of Akam Al Rajhi, underscored the strategic importance of the D.O.S.E project's location, its expansive 125-feddan footprint, and the over EGP 9bn invested to date. Akam Al Rajhi CEO Idris Mohamed confirmed that the new U Hotels property will feature 150 hotel rooms and will manage over 1,000 serviced hotel residences within the D.O.S.E development. The hotel will offer a comprehensive suite of hospitality and leisure services, including scenic landscapes, artificial lakes, swimming pools, a wellness club, dedicated jogging and cycling tracks, and a shopping complex—designed to provide a premium lifestyle experience for residents and visitors alike. Kevork Deldelian, CEO of Absolute Hotel Services for the Middle East and Africa, noted that the Bangkok-headquartered company is one of the fastest-growing hospitality management groups worldwide. It currently operates over 69,000 hotel rooms across 50 properties under various brand names and is known for its high standards of service across global markets.
