Nine years ago, while attending MIPIM - the real estate world’s equivalent of the Monaco Yacht Show - the CEO of one of Egypt’s largest urban development firms had a prescient realization.
Taking a survey of the French Riviera, the vibrant marinas populated with superyachts drew his fascination, after which he alighted on an idea: why not do the same in the Red Sea? But standing in the way of executing this plan was red tape; obtaining approval would prove difficult, and it placed the project on hold for some time.
But Dr. Ahmed Shalaby, President and CEO of Tatweer Misr, and facing challenges are old friends. His first project after launching the company in 2014, the luxury resort IL Monte Galala in Ain Sokhna, was constructed on a piece of land previously deemed uninhabitable. The subsequent developments, built across a total of 7.4 million square meters and comprising 34,000 residential units, followed this route, turning a technical setback into an opportunity to innovate. It was only a matter of time until a superyacht-related venture would find its way to one of Tatweer Misr’s properties.
Now, his long-gestating aspiration to have an international-standard yacht marina has finally made inroads. In February, after receiving the green light from the government, Tatweer Misr announced the latest addition to the IL Monte Galala flagship: IL Monte Galala Marina Towers, a $1 billion investment that will find a superyacht berthing hub as its centerpiece. The waterfront development is already bearing fruit, having sold $700 million worth of units in five days, making up 75% of the company’s half-year earnings.
The delay turned out to be a blessing in disguise. In the interim, the Red Sea has transformed into an emerging winter yachting destination, with Egypt, Saudi Arabia and Jordan all investing in marine infrastructure and streamlining regulations to attract the global fleet, and IL Monte Galala Marina is only the next step in the market’s maturity.
The facility will offer 180 berths for vessels up to 80 meters in length. It will also be the first in Egypt to benefit from the muscle of an experienced player: IGY Marinas, the international company brought on as IL Monte Galala’s operator.
Hours before the official signing ceremony at the Monaco Yacht Show, Dr. Shalaby spoke to the Maritime Observer Newsletter to share the rise behind demand in waterfront developments, the role of marinas in boosting tourism, and what is in store for the Red Sea as a yachting hub.
Meanwhile, there has been one question animating the yacht market this year: Have geopolitical tensions hampered the Middle East sector’s momentum? On the news front for this month, the stream of announcements coming out of a busy Monaco Yacht Show seemed to have provided an answer. New build premieres, marina launches and agreements, new boat shows, a yachting alliance in the UAE, and Saudi Arabia’s first maintenance facility have all set the stage for what’s to come in 2027 and beyond.
Thank you for reading.
faisal@maritimeobserver.com
Tatweer Misr CEO Dr. Ahmed Shalaby discusses $1 billion project IL Monte Galala Marina Towers, IGY Marinas partnership and what’s next for the Red Sea as a yachting hub
You’ve been working in the sector for a number of years before starting Tatweer Misr. Why did you decide it was the time? What were you planning on achieving?
I shifted to real estate in 2006 as a general manager of the largest company at the time. This was a period where I learned the process from the best in the world.
But at that point, I decided I needed to do something different. When it comes to innovation and quality in real estate, I felt like Egypt was far behind.
So I thought, why not start a company and try to do something different? I was lucky to pitch my idea to a friend of mine who was an investor. He loved the idea and helped me get the investment needed to start the company.
This interview has been edited and condensed for clarity.
Was it a challenge starting with the Il Monte Galala flagship project?
To start a real estate company in 2014, I think the selection of the site of IL Monte Galala was the most difficult decision. It was just land, with different hills scattered everywhere; it wasn’t accessible by car.
[But] for me, it was clear, and it was the right decision because if you need to do something different, you need to start from the beginning. You need to select a different piece of land in a different setup that will allow you to do something different. This is the DNA that we are keeping up in every project, in every development.
How did you realize this was the land before transforming it?
The real estate developer should be able to see where the development is going because we do not develop in hotspots, but in areas where people are going to live in the future. We even started IL Monte Galala before the announcement of Galala City by the government.
Yes, developing in hotspots is safe, but it’s expensive; the criteria is definitive and the flexibility for innovation is not there. When you start jumping far away from others, you have the flexibility to innovate.
In every development, there is an aspect of innovation. And that is what distinguishes Tatweer from any real estate company in the country.
And then came your latest announcement, IL Monte Galala Marina Towers, which will cater to yacht owners and even future prospective buyers. Why was this the right moment to cater to this demographic?
The idea behind it was two things. One thing was from visibility studies and economic reasons, but the other is that you want to do something big.
Ain Al Sokhna was characterised by being a second-home destination, but we built our development to be a first-home destination. So to do something big, integrated and from a second-home to a year-round destination, we had to include different economic bases.
Which brings us to an integral piece of the development: the marina. Take us behind this strategy and how the partnership with IGY Marinas came about.
It started back in 2017/18. Attending [real estate exhibition] MIPIM in Cannes, we saw how the marina, hotels, and facilities created a strong economic base for the region. At that point we thought, ‘why not do the same in IL Monte Galala?’
We were very careful about selecting our partners. It’s okay to build it, but to run it, operate it and get the right revenue from it is a different story.
This is why we brought IGY Marinas back in February. We invited them to Egypt to visit the place. We hired them as advisors for 6 months to review the specs, the drawings, the requirements, and now we signed the management agreement.
IGY will be in a better position to understand the clients and to lead us through developing something that will match the needs of the clients.
It’s interesting to hear you say the idea for a marina was conceived in 2017/18. In the interim, were you observing the rise of the Red Sea as a yachting destination?
The reason behind the delay for us was getting approval - It’s very hard to get approval for a marina in Egypt - which took us more than three years to finalize. For our development, it came from the president himself.
Having this transformation in Egypt, the rise of yacht tourism and marina tourism in Egypt, Saudi Arabia, and Jordan is a great value addition. And I’m glad to see international players coming and operating marinas here. This is the way to put Arab countries on the map, because no one can do it alone and be successful.
It has to be the whole area, like what you see in the French Riviera and Côte d’Azur. It’s a network; you have tens of marinas, and this is why it’s a success.
From your perspective, what needs to be done to ensure the maturity of the region as a yachting destination?
We need to respond to the needs of yacht tourism. I always say the government needs to work on the enabling environment.
The developers need to develop the destinations, and international expertise is needed to operate the destinations, to be part of a broader network of yacht tourism so that we make it a success.
Now, the Government is doing a lot of regulations to ease movement in the Red Sea, to ease movement between the Red Sea and the Mediterranean, and the canal.
They are now understanding the needs. This kind of tourism is so luxurious; people are not going to suffer from any bureaucracy. Unless you give them what they want, they will not come.
I’m very happy to see what is happening now in the region, and I’m glad that we are coming at the right time.
Everything is delayed for a reason. I always believe that everything comes at the right time.
The popularity of waterfront developments has been rising in recent years. What do you think is behind this boom?
It’s changed over the last few years, but it was there from the beginning. The North Coast of Egypt was always the summer destination for Egyptians, but it was not that sophisticated. Now, developing waterfront destinations is a reflection of the needs of the people.
It is a complex issue because it’s not only about the destination; it’s about the experience of people living there and the trends that are coming. Food and beverage restaurants, along with the marina, will play an important role in creating the experience, which new generations are more interested in.
All these elements will help in creating a different experience. It’s changing with time, and we have to be flexible. We have to have the ability to transform what we are doing and change according to their needs.
Let’s turn our attention to sustainability. Have you taken it into consideration when conceiving the marina and the project as a whole?
We put sustainability at the heart of everything we are doing. We have had a lot of sustainable measures in our developments; Montegalela already has 8 ISO environmental certificates.
We do a lot when it comes to water treatment, reusing water, energy efficiency, water desalination plans, and so on. With the marina design and marina operations, we will make sure it’s sustainable, and this is what we asked IGY to help us with.
Sustainability is not an option anymore. It’s something that should be considered in any new development.
Time for some rapid-fire questions. Where do you see IL Monte Galala in ten years?
I want to see it as a global destination, like what I’m seeing in Monaco. The Monaco Yacht Show- I want to see it happening in IL Monte Galala in ten years.
When giving lectures, what is one piece of advice that you like to impart to your students?
I always advise my students of one thing that I learned from my advisor: Networking is key in any development in your life. Try to be connected with people and try to learn from people all the time. The network you create around you is what will help you succeed.
If you weren’t in this industry, what would you be doing?
Doctor.
Is there something you’re trying to learn right now
I’m trying to learn about the yacht and marina industry. This is the beauty of real estate, we can learn about everything. Whether we build hospitals, schools, hotels, malls, or marinas, we are learning as we do it and about how it comes together.
Finally, what still excites you the most?
Transforming a land into a development. The joy and positive energy that I get from this is incomparable.
The happiest time for me is when I go for a site visit, and see the progress of what we are achieving. There is nothing compared to the joy of transforming a desert land or a mountain into a development, and I believe it’s the purpose of humanity.
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