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Dubai-based The First Group has entered the Egyptian market through a strategic partnership with Pulse Developments, marking its first expansion beyond the United Arab Emirates since its establishment nearly two decades ago.
The partnership will introduce The First Group’s hospitality investment model to Egypt, combining internationally branded hotels with professionally managed investment opportunities. The first development, Sharm Oasis in Sharm El Sheikh, is expected to be followed by additional projects across the country.
On the sidelines of the partnership signing, Kamal Zohran, Chief Sales & Owner Relations Officer at The First Group, spoke with us about the company’s expansion strategy, why Egypt was selected as its first international destination, the investment model behind the project, and the company’s long-term vision for the Egyptian hospitality market.
Q: What does today’s partnership mean for The First Group?
This is a landmark moment for our company.
Since The First Group was founded in Dubai in 2006 by British entrepreneurs Danny Lubert and Gary Shepherd, we have focused on developing, operating, and managing hospitality assets. Over the years, we have built a portfolio of nearly 20 projects and established a strong reputation in Dubai’s hotel sector.
Following our success in the UAE, we began evaluating international markets for expansion, and Egypt emerged as the natural choice for our next step.
The partnership with Pulse Developments allows us to launch our first Egyptian project, Sharm Oasis, while establishing a long-term platform for future hospitality developments across the country.
Q: Why did Egypt become your first international expansion market?
Egypt offers a unique combination of strong tourism fundamentals, large-scale infrastructure investments and a government committed to expanding the country’s hospitality sector.
We believe the market has reached a stage where internationally managed hospitality investments can create significant value for both investors and the tourism industry.
Our decision was based on long-term market fundamentals rather than short-term opportunities.
We see Egypt becoming one of our key growth markets over the coming years.
Q: Why did you choose Pulse Developments as your local partner?
Entering a new market requires a partner with extensive local expertise.
Pulse Developments understands the Egyptian market, has strong development capabilities, and shares our long-term vision.
The partnership is built around complementary strengths.
Pulse is responsible for project development and execution, while The First Group contributes international hospitality expertise, global sales capabilities, and hotel management experience.
That combination creates a very strong platform for growth.
Q: Why was Sharm El Sheikh selected as the starting point?
Sharm El Sheikh is one of the Middle East’s leading tourism destinations.
Before making our decision, we conducted extensive market research and found that hotel occupancy averages around 88%, slightly higher than Dubai’s average of approximately 86%.
The city attracts international tourists year-round, making it an ideal location for our hospitality investment model.
Q: How does your investment model differ from traditional real estate developments?
Our model is fundamentally different from conventional residential projects.
Investors purchase a hotel unit rather than a residential apartment.
The First Group then manages and operates the entire hotel, including accommodation services, restaurants, food-and-beverage outlets, and all hospitality facilities.
As a result, investors own an income-generating hospitality asset without having to manage it themselves.
It is a fully integrated hospitality investment rather than a traditional property purchase.
Q: Can investors use their units?
Yes.
Just as we do in Dubai, investors are entitled to use their units for between two and four weeks each year.
For the remainder of the year, the units stay within the hotel’s rental program, generating operating income for their owners.
This approach allows investors to enjoy personal use while maintaining the investment’s income-generating potential.
Q: What returns do you expect investors to achieve?
Based on our operating experience, investors can expect annual returns ranging from 6% to 8%, depending on the hotel’s operational performance.
This investment model has proven successful across our projects in Dubai, giving us confidence as we introduce it in Egypt.
Q: Tell us more about Sharm Oasis.
Sharm Oasis is a low-density luxury resort comprising buildings of no more than three stories.
The development includes approximately 350 hotel rooms and hospitality units, together with a full range of internationally standardized hospitality amenities and guest services.
The objective is to create a premium guest experience while delivering sustainable returns for investors.
Q: What gives you confidence that the project will succeed?
Our track record speaks for itself.
Today, we have approximately 7,000 property owners invested across our developments and manage nearly 8,000 hotel rooms in Dubai.
Perhaps the strongest indicator of customer confidence is that around 40% of our monthly sales come from existing investors purchasing additional units.
That level of repeat business demonstrates the strength of our operating model.
Historically, many of our Dubai projects have sold out within six months, and we are optimistic about achieving similar momentum in Egypt.
Q: Which investor markets are you targeting?
We have built a broad international investor network over many years.
Saudi investors have historically been among our largest investor groups, and we expect continued interest from across the GCC.
At the same time, we see significant opportunities among Egyptian investors and international buyers looking for professionally managed hospitality assets in one of the region’s fastest-growing tourism markets.
Q: What is the size of The First Group’s current hospitality portfolio?
Today, we manage approximately 8,000 hotel rooms in Dubai and will also operate Sharm Oasis once construction is complete.
Our value proposition extends beyond development.
We are a long-term hospitality operator, which gives investors confidence that their assets will be professionally managed throughout the life of the investment.
Q: Is Sharm Oasis only the beginning of your plans in Egypt?
Absolutely.
Sharm Oasis is our entry point into the Egyptian market, but certainly not our final destination.
We are currently studying another hotel development in Cairo comprising approximately 430 rooms, which reflects our confidence in the city’s growing tourism sector and increasing demand for internationally managed hotel accommodation.
As Egypt continues investing in tourism infrastructure and destinations such as the Grand Egyptian Museum, we see substantial opportunities to expand our hospitality portfolio.
Q: Finally, how do you view the future of Egypt’s hospitality sector?
We are extremely optimistic.
Egypt has all the ingredients needed for sustained growth: world-class tourism assets, continued government investment in infrastructure, rising international visitor numbers and a clear strategy to increase hotel capacity.
These factors make Egypt one of the region’s most attractive hospitality investment markets.
We are proud that it is the first country chosen for The First Group’s international expansion, and we look forward to playing a meaningful role in the continued development of Egypt’s tourism industry. This marks the beginning of a long-term commitment to Egypt.
