The Red Sea Ports Authority signed an agreement on Wednesday with Taba Heights and Taba, which are two hotels owned by business tycoon Samih Sawiris, to manage the port of Taba.
Orascom Hotels owns the largest tourist compound in Taba, with five international hotels.
Transport Minister Ibrahim al-Demeri said the agreement is a joint venture company of which 51 percent would be owned by the Red Sea Ports Authority.
“The aim is to attract tourists coming from the port of Aqaba,” he said.
Meanwhile, Orascom Hotels said in a statement to the Stock Exchange that the capital of the new company is LE1 million.
