Cairo, Egypt, November 19, 2015—IFC,
a member of the World Bank Group, will provide up to $20.5 million in loans
to Credence Hospitality Developments, part of an effort to support Egypt’s
tourism sector and help boost job creation and economic growth in the North
The financing will support Credence’s
efforts to expand and refurbish an existing 950-room beach hotel in the
Red Sea resort town of Hurghada. Credence plans to add 378 rooms to the
development. The financing, which will be committed as two consecutive
loans, will also support the construction of three hotels in the Cairo
catering to extended-stay corporate travelers. The hotels are expected
to be among the most eco-friendly in the country, using at least 20 percent
less energy than traditional developments.
“This investment will help us provide
world-class accommodations to foreign and local visitors, supporting the
recovery of the vital tourism sector,” said Islam Mahdy, Credence Chief
Executive Officer. “It will also support our efforts to push the bounds
of green building in Egypt.”
Tourism accounts for 15 percent of Egypt’s
gross domestic product and employs 11 percent of workers.
“Continuing to support vital sectors
like tourism is crucial to boost economic growth and create much needed
jobs. We believe this sector has considerable long-term potential, but
needs support from key players to demonstrate its viability to investors
despite ongoing challenges,” said Nada Shousha, IFC Country Manager in
Hurghada is the third largest city in
the Red Sea area, and one of Egypt’s fastest-growing tourist destinations.
It handles 34 percent of the country’s tourist arrivals. In addition to
the 700 people currently employed by Credence in Hurghada, the project
is expected to create 600 additional permanent jobs as well as temporary
The initiative is part of IFC’s wider
efforts in Egypt to create jobs and drive sustainable economic growth.
Between fiscal years 2011 and 2015, IFC’s investments in the country totaled
close to $1.2 billion, including mobilization. Those investments covered
18 projects across a host of sectors, including financial markets, infrastructure,
oil and gas, agribusiness, manufacturing, and health care.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
About Credence Hospitality Developments:
Credence aims to be Egypt’s leading
leisure choice. Since 1983, it has launched more than 35 innovative projects
in a wide variety of fields, including hotels, real estate, attractions,
and restaurants. After years of aggressive expansion, the organizational
strategy was redirected toward consolidating into two main bodies: Sindbad
Club and Urbane. Sindbad Club is a developer of mixed- use destinations
that owns and manages integrated hotels, attractions, and real estate.
Urbane Develops and manages innovative food concepts and urban developments.