Cairo – Mubasher: The Egyptian Cabinet has approved the final draft outlining the requirements, determinants, and mechanisms for implementing a new tourism sector support initiative.

The initiative, funded by the Ministry of Finance with EGP 50 billion, aims to accelerate investment in building hotel rooms, according to an official statement.

Key determinants of the initiative, agreed upon with the Ministries of Finance, Tourism and Antiquities, Investment, and Foreign Trade, include determining the credit volume available for each company based on its business size and banking regulations.

Each company will have access to financing of up to EGP 2 billion, provided through a maximum of two banks.

The funds are directed to companies in the tourism sector that have prior approval from the Tourism and Antiquities Ministry to build and operate new hotel rooms, expand existing projects, or convert closed buildings.

Priority regions for funded rooms include Luxor, Aswan, Greater Cairo, the Red Sea, and South Sinai.

Companies can start benefiting from the initiative within a month of its launch, with a 12-month availability period and a maximum 16-month withdrawal period ending on 30 June 2026. There is a 6-month deadline from the end of the withdrawal period to obtain an operating licence.

Benefiting firms will bear a reduced return price of 12%, with the Finance Ministry covering the difference from the central bank's credit and discount rate plus 1%.

No additional expenses or commissions will be included. Companies are prohibited from using the granted credit to pay other banking sector debts.

The initiative supports the Tourism Ministry's strategy to attract 30 million tourists by adding 240,000-250,000 new hotel keys.

The expected returns from the new hotel rooms could generate annual revenues of $1-2 billion and EGP 1.50-2 billion in value-added tax, creating about 45,000 direct and indirect jobs.