T M G HOLDING
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TMG Holding Joins Forces with ADQ and Modon to Transform Ras El-Hekma into $24B Mediterranean Powerhouse
Strategic $24B partnership between TMG Holding, ADQ, and Modon to develop Ras El-Hekma into a premier Mediterranean destination and economic hub.
February 25, 2024 at 12:44:00 PMScore: 88
Cairo-based TMG Holding has inked a strategic partnership with Abu Dhabi's ADQ and Modon Properties to co-develop the $24 billion Ras El-Hekma megaproject. The collaboration aligns with TMG's shareholder value-creation strategy, as disclosed in regulatory filings. ADQ, leading a private consortium, acquired development rights for the coastal region located 350 km northwest of Cairo. The Egyptian government retains a 35% stake in the venture, which aims to transform Ras El-Hekma into a premier Mediterranean tourism hotspot, financial hub, and free zone with cutting-edge infrastructure. Construction is slated to begin in early 2025. This follows ADQ's recent acquisition of a 40.5% stake in TMG's hospitality arm, ICON, through a capital increase. TMG reported a 34% YoY surge in 9M 2023 net profit to EGP 2.68 billion, signaling strong financial momentum.
Recommended Actions
- Consider holding TMG shares for long-term infrastructure play
- Monitor ADQ's project milestones through official disclosures
- Evaluate exposure to Egypt's tourism recovery narrative
- Review TMG's debt levels amid expansion commitments
- Track ICON Hospitality's performance post-ADQ investment
Positive Aspects
- Government-backed infrastructure development
- Diversification into high-growth tourism and finance sectors
- 34% YoY profit growth demonstrating financial health
Negative Aspects
- Execution risks inherent in multi-year megaprojects
- Dependency on external funding for consortium partners
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