Egypt extends hotel financing initiative by 6 months to boost tourism growth

Egypt’s government has approved a six-month extension for a 50 billion Egyptian pound hotel financing initiative aimed at expanding the country’s accommodation capacity to meet growing tourist demand, the finance and tourism ministries said in a joint statement Wednesday.

The extension, effective from 20 Oct., 2025, comes in response to requests from investors seeking more time to complete their projects and benefit from the initiative’s incentives. Under the scheme, the state treasury will continue to cover the difference in interest rates on loans extended through participating banks.

Applications and preliminary approvals will now be accepted until 20 April, 2026, the statement said, noting that the initiative is part of the government’s broader efforts to stimulate private sector growth while prioritising the tourism and hospitality industries — key drivers of job creation and foreign currency inflows.

Beneficiaries will continue to enjoy the subsidised interest rate for five years from the date of the first loan withdrawal. The ministries also granted a final six-month grace period for investors to obtain final or temporary operating licences for their hotel rooms, with a hard deadline set for December 2027.

The move reflects the government’s commitment to balanced fiscal and economic policies that support tourism expansion and attract fresh private investment to one of Egypt’s most vital sectors.

Attribution: Amwal Al Ghad English