Naeem Holding and Saudi-based Siraj Capital launched a $500 million company to invest in the hospitality and tourism sector.

Naeem Holding is an Egyptian investment bank which has private equity and corporate finance operations in Egypt, Saudi Arabia and the UAE.

The new company, Rahala, will hold exclusive rights in Saudi Arabia to Express by Holiday Inn hotels, and has plans to invest $200 million in at least 10 hotels over the next five years, a statement from the companies said.

It said Rahala would operate in compliance with Sharia, the Islamic legal code that prohibits interest payments and speculation on future risks and investments in sectors such as alcohol.

It added that the company will invest most of its capital in Saudi Arabia, and will be open to outside investors with a minimum investment of $10 million.

The new company also signed a co-development agreement with hotel brand Courtyard by Marriott, and committed to a joint venture with Kempinski for a new hotel brand, SHAZA, which will also be Sharia compliant, according to the statement.

It will also invest in the Dubai Wellness Centre, a $350 million development in Dubai Healthcare City. Reuters