Egyptian PM Explores Mobile Phone Manufacturing, Hotel Room Expansion Plans

(MENAFN- Daily News Egypt) Egyptian Prime Minister Mostafa Madbouly chaired a meeting in New Alamein City on Sunday to discuss plans for localizing mobile phone manufacturing for export. The meeting also explored investment opportunities related to expanding hotel room capacity.

As part of the government's efforts to attract foreign investment and boost economic growth, Prime Minister Madbouly emphasized the commitment to supporting mobile phone production within Egypt and encouraged international companies to establish a presence in the industry.

“We are working to pave the way for encouraging various international companies to establish a presence in Egypt and ensure that this industry operates on the largest possible scale within the country,” Madbouly said.

The meeting was attended by Amr Talaat, Minister of Communications and Information Technology, who outlined the goals of the initiative. Talaat explained that localizing mobile phone manufacturing would meet the needs of the Egyptian market, increase exports, and deepen local manufacturing.

Talaat showcased the growing presence of mobile phone manufacturers in Egypt, highlighting that Samsung established a factory in Beni Suef in 2022 with a production capacity of 2 million units, an investment of $20m, and creating approximately 400 job opportunities. Vivo established a factory in Tenth of Ramadan City in the same year, with an investment of $20m, a production capacity of 2 million units, and providing 400 jobs.

Talaat also mentioned that Xiaomi, Nokia, Infinix, and Micromax manufacture phones locally through third parties. The combined production capacity of these four companies reaches 7.5 million units. He highlighted Nokia's establishment of a production line in 2023 in collaboration with Seco in Asyut, with a production capacity of 2.5 million units, an investment of $20m, and creating 400 job opportunities.

The government's efforts to localize mobile phone manufacturing have yielded positive results. The total current production capacity of these companies reaches 11.5 million units, with total current investments reaching $87.5m.

The total current job opportunities represent 2050, and these figures are currently increasing due to new expansions.

Talaat also discussed the strategy for localizing the mobile phone industry in Egypt, which includes incentives and mechanisms for attracting companies involved in auxiliary industries.

In a separate meeting, Madbouly discussed the investment opportunities available in land plots that can be utilised to build approximately 250,000 hotel rooms, with the aim of accommodating 30 million tourists annually. This is a key target for the government as it seeks to bolster tourism.

“Alongside the government's efforts to promote various tourist destinations, there are targets that the state is currently working on, namely attracting 30 million tourists annually,” Madbouly said.“However, in turn, we face a challenge in the need to add approximately 200,000 to 250,000 hotel rooms.”

The meeting was also attended by Sherif Fathy, Minister of Tourism and Antiquities; Sherif El-Sherbiny, Minister of Housing, Utilities, and Urban Communities; Hassan El-Khatib, Minister of Investment and Foreign Trade; and Manal Awad, Minister of Local Development, via video conference.

Madbouly directed the Minister of Investment and Foreign Trade to work on attracting investors involved in developing and operating facilities and hotel rooms, in conjunction with the Ministry of Tourism and Antiquities.

Fathy proposed that a“tourism opportunities bank” be established to promote available opportunities. He also emphasised the need for incentives serving tourism, recreational areas linked to the proposed land plots, and the development of new tourist cities on the Red Sea.

The Minister of Investment and Foreign Trade, Hassan El-Khatib, noted that the government will work as one team to promote integrated tourism opportunities.

El-Sherbiny reviewed investment opportunities in hotel activity in new cities and governorates, highlighting proposals to accommodate over 200,000 hotel rooms in areas affiliated with the New Urban Communities Authority and the General Authority for Tourism Development.

The minister discussed the potential for building hotel rooms in 35 locations across 10 new cities and three governorates. He also presented 16 proposed locations by the General Authority for Tourism Development and 1,381-feddan plots proposed by both authorities for hotel development.

El-Sherbiny identified specific investment opportunities in a number of land plots for hotel activity, including 12 opportunities in the area of the Alamein Marina Center and its southern extension that can add approximately 3,000 hotel rooms.

He also highlighted 10 opportunities in New Alamein City that can add 9,000 hotel rooms, two opportunities in New Damietta City that can add 2,200 hotel rooms, an opportunity in West Port Said that can add 1,200 hotel rooms, and a plot of land in New Aswan that can be used to establish 1,200 hotel rooms.

He noted that among the proposed investment opportunities in the New Administrative Capital is the iconic tower, which will offer approximately 485 hotel rooms. It is located within the central financial and business district. He also highlighted two plots of land in New Cairo where it is targeted that the number of hotel rooms from the proposed projects will reach 1,700 rooms.

Finally, El-Sherbiny discussed opportunities in the cities of the Sixth of October and October Gardens, where it is targeted to build approximately 580 hotel rooms, and an investment opportunity in New Nasser City in Asyut Governorate, which can offer approximately 250 hotel rooms.

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