Abu Dhabi-based ADQ and ADNEC Group have entered definitive agreements to acquire a 40.5% stake in Talaat Moustafa Group Holding Company's (TMG Holding) hospitality division, ICON. The deal involves a capital increase and will be executed through a special purpose vehicle, with ADQ holding 49% and ADNEC 51%. This strategic move represents a significant foreign direct investment (FDI) in Egypt, aligning with projections that the tourism sector will surpass 30 million annual visitors by 2028. Part of the investment will reduce ICON's existing debt, while the remainder will fund the acquisition of a seven-luxury-hotel portfolio owned by the Egyptian government. Post-transaction, ICON will manage 15 prime hospitality assets across Cairo, Luxor, Aswan, Sharm El-Sheikh, and Alexandria, totaling 5,000 keys. ADNEC CEO Humaid Matar Al Dhaheri highlighted the deal's role in global expansion and access to Egypt's thriving tourism market. TMG Holding CEO Hisham Talaat Moustafa emphasized growth opportunities and shareholder value. EFG Hermes advised TMG on the transaction, which remains subject to regulatory approvals. TMG Holding reported a 34% YoY surge in 9M 2023 net profits to EGP 2.68 billion.