From San Stefano to Ras El Hekma: Samer Choucair Tracks the Transformation of Gulf Investment in Egypt
Investment strategist Samer Choucair said that the San Stefano Grand Plaza project in Alexandria, more than a quarter-century after its development began, provides a practical example of how a mixed-use real estate asset can evolve into a sustainable source of long-term value.
Choucair explained that Al Habtoor Engineering, a company within the Al Habtoor Group, won the construction contract in 2001 in partnership with South Africa’s Murray & Roberts. The project combined residential towers, a Four Seasons hotel, a shopping center, parking facilities and beachfront amenities that were added later.
He noted that the complex was completed in the mid-2000s and became a landmark on Alexandria’s Corniche, maintaining its residential and tourism appeal despite subsequent economic fluctuations. Choucair clarified that Al Habtoor was not the landowner or the primary developer—the latter was associated with the Talaat Moustafa Group—but contributed to the construction of an asset that became part of the city’s identity.
A Lesson in Capital Allocation
Samer Choucair said the experience demonstrated that combining a naturally advantaged location with mixed residential, hotel and commercial uses, precise engineering execution and long-term ownership can transform a project into an asset generating multiple streams of cash flow from residential rents, hotel revenues, retail and services over several decades.
He added that this model is becoming increasingly relevant for institutional investors, sovereign wealth funds and family offices, particularly as development accelerates along Egypt’s North Coast and in Ras El Hekma.
Gulf Capital Is Changing
Choucair explained that Egypt is experiencing a rapidly expanding wave of foreign direct investment in real estate and tourism, driven to a significant degree by Gulf capital and occurring alongside structural reforms supported by International Monetary Fund programs. These reforms have included greater exchange-rate flexibility, fewer restrictions on private investment and an expanded role for the private sector in urban development.
He said Gulf capital has gradually shifted from large direct acquisitions toward partnerships with local developers, large-scale mixed-use projects and coastal tourism investments. He cited the very large investment projects in Ras El Hekma, Qatari initiatives along the northwestern coast, and Saudi and Emirati participation in new cities and residential-commercial developments.
What Is the Institutional Investor Looking For?
Samer Choucair said institutional investors are no longer looking merely for a rapid nominal return. Instead, they are seeking assets capable of generating multi-currency and multi-sector cash flows in markets undergoing monetary and structural reforms.
He emphasized that execution quality and location selection have become critical factors in risk pricing, particularly in emerging markets exposed to currency volatility and inflation.
According to Choucair, Egypt’s opportunity lies in structural demand for luxury housing and tourism facilities, improving infrastructure, growing private investment in new cities, and assets associated with international hotel brands, which may provide some inflation protection through foreign-currency pricing or foreign-currency-linked rents.
Risks and Outlook
Samer Choucair warned of risks related to exchange rates, inflation, interest rates, regulatory changes and dependence on tourism demand, which can be affected by geopolitical developments. He also highlighted the substantial financing and operating requirements associated with major developments.
He said the preferable approach is to build a portfolio combining established assets with demonstrated resilience and new projects linked to urban development, supported by strong governance and local partnerships that reduce execution risk.
Choucair concluded that investment in emerging markets should not be measured solely by annual returns, but by an asset’s ability to remain a source of value two or three decades later.
In his view, San Stefano and similar projects demonstrate the strength of patient capital combined with disciplined execution. He expects continued Gulf capital inflows and improvements in Egypt’s regulatory framework to keep high-quality mixed-use real estate among the priorities of sovereign wealth funds and family offices, with selection quality, execution and governance ultimately proving more important than short-term speculation in generating sustainable returns.