Egypt's GAFI, Maxim Group to establish $1.5 billion health resort

Ahram Online , Tuesday 9 Jan 2024

The Egyptian General Authority for Investment and Free Zones (GAFI) signed a contract with Maxim Investment Group (MIG) to establish the country's first medical and health resort, with $1.5 billion in investment, according to a Cabinet statement on Tuesday.

The signing ceremony.
The signing ceremony.

The 40-feddan resort will be located in the investment zone in El-Saf Centre in the Giza governorate.

Under the agreement, MIG will manage and operate the resort, which is expected to create more than 4,500 jobs.

Additionally, the resort is projected to become the focal point of medical tourism in Egypt, aligning with the country's comprehensive strategy to develop the health sector and boost tourism, as per the statement.

The contract was signed by GAFI CEO Hossam Heiba and MIG Chairman Mohamed Karar.

Heiba emphasized that the resort embodies the successful partnership between the Egyptian government and the private sector, which serves as a pivotal step towards achieving the government's objective of increasing the private sector's contribution to the economy from its current 30 percent to 65 percent by 2026.

Karar emphasized the resort's role in making Egypt a global destination for medical tourism, generating sustainable foreign exchange income.

"The resort represents the first of its kind in the country, as it will include many medical specialties and will host leading doctors worldwide."

The Egyptian medical tourism market is estimated at over $115 billion annually, with an annual growth rate of more than 12.5 percent, and is expected to reach over $346 billion annually by 2030, Ahmed El-Sobky, chairman of General Authority for Healthcare (GAH).

Last year, Egypt ranked fourth regionally and 26th globally in the Medical Tourism Index, as announced by Minister of Health and Population Khaled Abdel-Ghaffar.

Egypt's strategic vision to enhance tourism revenues is reflected in its objective to achieve a 20 percent annual increase, targeting a surge from $13.63 billion in FY2022/2023 to $45 billion by 2030.

As part of this plan, the country aims to add 25,000 new hotel rooms by mid-2024 and attract 30 million tourists by 2028, Minister of Tourism Ahmed Issa said previously.

These endeavors align with Egypt's broader strategy to attract foreign currency and bridge a financing gap of $17 billion by 2026, of which $6 to $8 billion is expected in the current FY2023/24.

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