Mohamed El-Shimy, Minister of the Public Enterprises Sector, and Karim Badawi, Minister of Petroleum and Mineral Resources, witnessed the signing of a usufruct agreement on Tuesday to rehabilitate and operate the Jet Beach Hotel in Ain Sokhna. The agreement was signed between the Egyptian General Company for Tourism and Hotels (EGOTH) and the Petroleum Projects and Technical Consultations Company (Petrojet), with a total investment of approximately EGP 120m. Contents * Institutional Synergy and Tourism Growth * Strategic Vision for Asset Utilisation * Development Details and Timeline * Driving Sustainable Economic Development Under the terms of the contract, EGOTH will undertake the rehabilitation, upgrading, operation, and management of the hotel for a 20-year period, based on a usufruct system that ensures long-term, sustainable returns for both parties. The agreement was signed by Walid Lotfy, Chairman and Managing Director of Petrojet, and Hisham El-Demery, Managing Director of EGOTH, in the presence of Amr Attia, Executive Managing Director of the Holding Company for Tourism and Hotels, as well as senior officials from both ministries. Institutional Synergy and Tourism Growth Minister El-Shimy described the project as a successful model of institutional integration between state-owned companies, aligned with the ministry's strategic focus on maximizing the returns from public-sector assets, particularly underutilized ones. "The reopening of Jet Beach Hotel will enhance Ain Sokhna's hospitality capacity and support tourism growth in one of Egypt's most promising coastal destinations," El-Shimy said. He emphasized that this partnership reflects an investment-focused approach that creates added value by reactivating dormant assets in a well-planned and economically sound manner. El-Shimy added that the initiative is expected to generate new job opportunities, encourage local investment, and contribute to the government's broader sustainable development goals. He also underscored EGOTH's selection as the operating partner, citing its proven expertise in hotel and tourism facility management as key to ensuring the project's success and return on investment. "The development will elevate the hotel's standards and position it as a premium destination, with a strong focus on service quality and operational efficiency," he stated. Strategic Vision for Asset Utilisation Minister Badawi expressed his strong support for the initiative, noting that it reflects the Ministry of Petroleum's strategic vision for leveraging its assets through cross-sectoral cooperation. "This agreement is a practical example of how the petroleum sector can work in tandem with public enterprises to unlock the economic potential of state-owned assets," he said. "Turning the Jet Beach Hotel into a tourism destination adds significant value and opens the door for further investment opportunities." Badawi added that collaboration with specialized entities like EGOTH ensures that such assets are professionally operated, transforming them into viable, income-generating ventures. Development Details and Timeline The development plan covers a total area of 15,345 square meters and includes comprehensive upgrades to the hotel and its annexes. EGOTH will be responsible for enhancing the facility's technical and operational infrastructure to bring it in line with modern hospitality standards. The project is expected to be completed within 18 months, with the possibility of adding entertainment and service areas to align with Ain Sokhna's growing appeal as a tourism hub. Driving Sustainable Economic Development The partnership between EGOTH and Petrojet reflects the broader government strategy of optimising the use of state-owned assets through public-public partnerships. It also aligns with Egypt's vision for sustainable economic development by focusing on long-term value creation rather than short-term gains. The Ministers concluded that the initiative is a clear example of how institutional cooperation and professional management can drive meaningful economic transformation, unlock underutilized assets, and support national development priorities.
