Business Reporter
Egyptian billionaire and tourism investor Samih Sawiris is investing €200 million over the next five years to revive a long-delayed resort development on Morocco’s Atlantic coast, in a major bet on the country’s growing tourism sector.
According to Billionaires.Africa, Sawiris plans to transform the unfinished Mogador-Essaouira development near the coastal city of Essaouira into an integrated tourism destination modelled on his successful El Gouna resort in Egypt.
The first phase of the project will involve about 800 rooms across three hotels and a club, covering approximately 2.5 million square metres.
A second phase is expected to require an additional €100 million to €150 million, although no timetable has yet been announced.
Sawiris told Moroccan media that his ambition is to recreate the success of El Gouna, the resort town he developed from largely undeveloped desert on Egypt’s Red Sea coast.
Billionaires.Africa reported that Sawiris does not intend merely to acquire and operate existing hotels, but instead follows a model of developing entire destinations incorporating hotels, residential properties and supporting infrastructure.
Reviving a stalled development
The Mogador project was launched in the early 2000s but remained unfinished for more than two decades.
Sawiris has since taken joint indirect control of Société d’Aménagement d’Essaouira Mogador, the state-linked company responsible for the development, alongside UAE-based Al Nowais Investments and Eastern Investment.
The three investors acquired 100% of the company’s capital and voting rights through Orascom Investments LLC, a UAE-registered company established for the transaction, according to Billionaires.Africa.
The exact ownership percentage held by Sawiris has not been publicly disclosed.
The investment follows a memorandum of understanding signed in February 2023 between Sawiris, other investors and Morocco’s tourism ministry covering 4 billion Moroccan dirhams of investment to revive the resort. The overall project has been valued at more than $400 million.
Tourism growth drives investment
The development comes as Morocco accelerates investment in tourism infrastructure and prepares to co-host the 2030 FIFA World Cup with Spain and Portugal.
The country has been expanding airports and air connections as it seeks to increase international visitor numbers.
Essaouira, located about 170 kilometres west of Marrakech, is known for its historic medina, fortified walls, fishing harbour and strong winds that have made it a destination for windsurfing and other water sports.
However, the city has historically lacked sufficient hotel capacity to convert large numbers of day visitors from Marrakech into overnight tourists.
Hala Matar Choufany, president for the Middle East, Africa and South Asia at hotel consultancy HVS, told Billionaires.Africa that the Mogador project will face a more complicated task than simply acquiring an operating hotel.
The development must establish infrastructure, create hotel capacity, generate demand and manage seasonality, meaning investors may have to wait years before the project reaches its full potential.
Choufany said projects of this nature should be assessed over a 10- to 15-year period, rather than on short-term returns.
She also cautioned against relying too heavily on the 2030 World Cup, arguing that the tournament should serve as a catalyst rather than the foundation of an investment’s economics.
Sawiris’ resort-building strategy
The Moroccan project represents another expansion of Sawiris’ strategy of building integrated destinations rather than simply investing in individual hotels.
His flagship El Gouna development became a major resort destination on Egypt’s Red Sea coast and subsequently provided a template for projects in countries including Oman, Montenegro, Switzerland and the United Arab Emirates. Billionaires.Africa estimates Sawiris’ net worth at about $1.4 billion.