The Royal Parks Marrakech project, still a financial pit for the Bahraini Gulf Finance House

Five years after relaunching its pharaonic project Royal Ranches Marrakech, the Bahraini group Gulf Finance House (GFH) does not yet see the end of the tunnel of financial profitability. Its hotel and real estate project in the ocher city, which was the subject, in 2006, of an investment agreement with the Moroccan State covering a budget of 7.5 billion dirhams before the scope of this luxury address in Marrakech was revised downwards, continues to cause abysmal losses at its subsidiary Royal Parks Marrakech, which invested no less than a billion dirhams in funds in this project.

Also, the 800 million dirhams in capital contributed by the parent company based in Manama, have already been reduced by more than 333 million dirhams in cumulative losses, including more than 40 million dirhams for the 2022 financial year alone. It must be said that in addition to the abysmal costs of starting up such a tourist site, the entry into operation of hotel activities, just before the crisis pandemic, has not helped matters either.

For the moment, the Islamic investment bank based in Manama does not yet need to get back into the pot and the significant recovery in tourism in Marrakech should allow a return to balance by 2024 at the latest.

source: challenge.ma