Dubai-based British hospitality developer The First Group has entered the Egyptian market through a strategic partnership with Pulse Developments, launching an integrated hospitality investment platform that marks the company’s first expansion outside the UAE. The partnership will initially deliver three hospitality developments in Sharm El Sheikh comprising more than 3,200 hotel units.
In an interview with Daily News Egypt, Nader Elias, Vice President of Business Development at The First Group; Mostafa Gamal, CEO of Pulse Developments; and Kamal Zahran, Sales Director at The First Group, discussed the partnership, Egypt’s hospitality potential, and their long-term investment strategy.
Why Egypt?
Nader Elias explained that although The First Group is a British company, all of its developments over the past two decades have been located in the UAE. Egypt represents its first expansion outside that market. The company has been visiting Egypt for more than 13 years while promoting its UAE projects and has closely followed the country’s tourism and real estate sectors. Elias stated that Egypt offers exceptional long-term opportunities, particularly in hospitality, making it the ideal first destination for international expansion.
Partnership Structure
Mostafa Gamal, CEO of Pulse Developments, said the company was looking for more than an international brand—it wanted a partner with proven expertise in hospitality development, operations, and investor relations. The First Group manages nearly 20 hotels in Dubai according to international standards and has built a strong global investor network. Gamal noted that Pulse Developments handles development and construction, while The First Group is responsible for international marketing, hotel management, and operations.
Sharm El Sheikh as Launch Point
Sharm El Sheikh was selected as the starting point because it remains one of Egypt’s strongest tourism destinations, with consistently high occupancy rates throughout the year. Kamal Zahran, Sales Director at The First Group, said research showed hotel occupancy levels in Sharm El Sheikh averaging around 88%, comparable to Dubai, demonstrating strong investment potential.
Project Details and Expansion Plans
The first project is Sharm Oasis. The second project, expected to be announced within weeks, will require investments of approximately $65m-70m. The third project will be significantly larger, with investments exceeding $500m, bringing total planned investments in the three developments to more than $670m.
Nader Elias stated that The First Group currently has an investment portfolio exceeding $5bn in Dubai. As it expands into Egypt, it expects that portfolio to continue growing in both countries. The company aims to launch around two new projects annually across Egypt and the UAE.
Mostafa Gamal added that Pulse Developments already has three projects in Sharm El Sheikh, a land plot on the North Coast, and is working to secure two additional sites over the coming months, including one near the Grand Egyptian Museum.
Hospitality Investment Model
Kamal Zahran explained that investors purchase hotel units rather than residential apartments. The hotel is professionally managed, generating annual returns typically ranging between 6% and 8%. Owners can also use their units for several weeks each year while benefiting from professionally managed rental income during the remaining period. This model has proven highly successful in Dubai, where many of the company’s developments have sold out within six months.
Target Markets
Nader Elias noted that Saudi Arabia has long been one of The First Group’s strongest markets, while Egypt and Africa have become increasingly important. The company serves more than 8,000 clients representing approximately 200 nationalities, with Egypt becoming one of its fastest-growing markets in recent years.
Why it matters
The partnership aligns directly with Egypt’s government strategy to boost tourism, expand hotel capacity, attract foreign investment, and increase foreign currency inflows. International investors today are looking for fully managed hospitality assets rather than standalone properties. By introducing a model proven in Dubai, the partnership could accelerate hotel development in key Egyptian destinations and provide a template for similar foreign-direct-investment structures in the region. The planned investment of more than $670m across three Sharm El Sheikh projects signals significant confidence in Egypt’s tourism recovery and long-term growth prospects.
