IDFT&A's Sherif Toulan talks Egyptian expertise

Egypt is embarking on an airport transformation that will reshape travel retail across the country. Civil aviation authorities announced public-private partnerships for 11 airports at the beginning of the year, with five major hubs, including a new Terminal 4 at Cairo Airport, projected for completion within five years. The development carries world-class ambitions for sustainability, passenger experience and AI-driven technological integration from booking through boarding.

For International Duty Free Trading and Agencies (IDFTA), the announcement validates a strategic repositioning completed in 2023. The company emerged after shutdown with a distribution-focused model across two warehouse hubs in UAE with 125 staff covering the Middle East, Africa and Indian subcontinent, plus 4,000 square meters in Port Said and Cairo servicing the Egyptian travel retail market.

Dual-hub distribution

The company’s UAE facility supplies tobacco brands and confectionery exclusively for travel retail to major operators across the Middle East, Africa and Indian subcontinent.

Fadel Khalil, a travel retail veteran, serves as General Manager of UAE operations. Khalil joined as Commercial Director before assuming the General Manager role several months ago, overseeing the distribution network’s commercial strategy and operator relationships.

The Indian subcontinent represents new territory for IDFTA with distinct market dynamics. The company supplies all major Indian operators. CEO Sherif Toulan has visited multiple times to understand the market nuances and identify growth opportunities.

“The Indian subcontinent was a new region for me. Very interesting and a new learning experience,” says Toulan. “I went there several times to understand the market better. It’s very special and has huge potential.”

The Egyptian hub navigates a complex retail landscape with seven distinct customers. Airport operators include Egypt Air Duty Free, Heinemann Egypt, Avolta, Cairo Airport Duty Free, Egypt Free Shops Co. and Overseas Duty Free.

Each operator presents distinct demands and priorities. IDFTA’s decades of regional experience enable navigation of these requirements, though Toulan notes suppliers unfamiliar with the Egyptian market find it challenging.

Terminal 4 development

The development timeline projects completion within five years, with emphasis on seamless passenger flow enhanced by AI applications throughout the traveler journey.

“I would estimate this new terminal should be ready within five years, but from the information shared with us, the intention is to create a world-class, sustainable terminal,” Toulan explains. “I mean from every aspect: sustainability, passenger experience and operational smoothness. The technological aspects from the time you book until you board the plane are a high priority, including AI integration.”

Egyptian authorities managed airports effectively under the previous government-held model but recognized private partnership requirements to achieve the next competitive level regionally.

“This is a big shift from traditional civil aviation in Egypt that was held by the government, and they did a great job,” he says. “But to leap to the next level and achieve the rightful position within the region, this transformation is necessary.”

Construction company tenders are currently underway. Toulan expects substantially more information to emerge within the next year once construction partners are selected and discussions begin regarding retail integration into the new terminal development.

Evaluating opportunities

With UAE infrastructure established and operations functioning smoothly, Toulan has transitioned focus from operational management to strategic development. The functional separation between the two hubs allows concentrated attention on strengthening regional reach and identifying market development opportunities.

The dual-hub approach positions IDFTA to maintain Egyptian market performance while expanding distribution reach across emerging territories, and to capitalize on Egypt’s infrastructure modernization over the next five years without requiring immediate capital deployment.