meed-logo

line1 line2 line3
SIGN IN / REGISTER

The changing face of community

11 December 2023

Swiss-Egyptian property group Orascom Development Holding has been on a transformative journey over the past three years in response to global pressures on its core markets and areas of activity.

Operating in seven countries – Egypt, Morocco, Oman, the UAE, Montenegro, Switzerland and the UK – the group develops mixed-use communities that combine residential units with social infrastructure and amenities – and, more recently, commercial office space.

It also owns 33 hotels with a total of 7,000 keys that it either self-manages or allows a third party to manage, and holds a landbank of 100 million square metres across the seven countries, of which two-thirds is yet to be developed.

Orascom Development’s model revolves around developing out-of-town locations that provide a sense of departure from urban life while remaining within reach of major cities.

Historically, much of this was keyed into second home ownership, but more recently, and particularly with the Covid-19 pandemic, shifting global attitudes to work and travel have driven the group to reorient itself to new realities.

Group CEO Omar El Hamamsy notes that at the height of the pandemic, the black swan event resulted in diverging effects on the group’s hotel and real estate businesses. While travel restrictions led to a downturn in its hotel business, the real estate business experienced an unexpected surge in demand.

Much of this surge was driven by people seeking an escape from urban environments, which boosted the appeal of the group’s lifestyle-oriented out-of-town developments. Consumer mindsets also shifted from viewing such properties as second homes to viewing them as prospective primary residences.

As El Hamamsy explains: “The purpose of those towns historically was for them to be second homes. Over time, that model has morphed into: ‘Well, hey, especially after the pandemic, should these places and towns be your primary home in the first place? Why wouldn’t you live in the Swiss Alps, an hour and a half away from Zurich, or an hour or two hours away from Milan, if you can do that?’”

This shift has created demand for commercial space within existing communities, such as at El Gouna (pictured below), the community established by the group on Egypt’s Red Sea coast near Hurghada in the ’90s.

This has led, notes El Hamamsy, into “the creation of co-working spaces – so in El Gouna, we have something called G Valley, which is our little Silicon Valley, to which we’ve attracted a whole bunch of startups. Now a bunch of digital nomads startups come in and they use those co-working spaces.”

Divesting peripherals

The group is also pivoting towards leaner operations and away from the development model it followed in the past, in which it ran everything from utilities and infrastructure to services and amenities such as schools, hospitals, marinas and leisure facilities, including even one ski resort.

El Hamamsy notes the group’s need to stay focused on its core competencies and profit centres and to disentangle itself from operational aspects. 

“As part of our growth strategy, we recognise the need to transition from owning and operating everything,” he says. “This move is geared towards achieving profitable growth, enhancing customer experiences, and unlocking the stored value in our assets.

“The model over the past 30 years was incredibly capital intensive – putting a lot of money into cement and steel, into pipes underground, into schools and hospitals – so at some point, we needed to become more asset-light.

“The next step, and the one we’re doing now, is actually returning dividends to our shareholders through some de-assetisation – unlocking some of that stored value and returning it.”

In the past three years, the group’s strategic realignment has led it to post 2022 revenues that were 77 per cent higher than in 2020 and 52 per cent higher than the 2019 baseline.

Gross profit then nearly tripled from 2020 to 2022, while a 10-year net profit loss has become a two-year winning streak in 2021 and 2022, according to El Hamamsy.

There are positive projections for profitability in 2023, too.

Optimising integration

Moving forward, while all of the group’s communities are still being developed with a similar furnishing of facilities as before, a key difference is that operational partners are being brought on board from the beginning – convinced by the group’s now multinational, multi-decade track record of development.

One community under active development along these new lines is O West, a masterplan in Egypt’s 6th October City, about 40 minutes west of Cairo’s downtown.

Here, as El Hamamsy notes: “Now we’re at the maturity level where we can get out of owning and operating everything. We don’t need to generate our own electricity or do our own landscaping, necessarily. We don’t need to operate schools. In O West, we have brought in three operators for the schools, and that’s working great for us.

“And in the extension of our hospitals and wellbeing experiences, we’re bringing in third parties who specialise in certain types of wellbeing to actually build their own infrastructure and operate their own infrastructure.

“Our role, ultimately, is to curate, just like a museum curator – to say: this is the right experience for that community at this point in time.”

The group’s communities are also being designed to accommodate a broad demographic, including by incorporating affordable housing into their masterplans to ensure the entire working population can live there.

El Hamamsy emphasises the distinction between the group’s holistic approach and that of other residential developments, which – while integrating a range of different facilities and spaces – often lack functionality as fully-fledged communities.

Orascom Development’s level of community integration, on the other hand, even extends to its ownership of the El Gouna Football Club, which now sits in the Egyptian Premier League, based out of its El Gouna development.

It similarly owns an ice hockey team in connection with its community in Andermatt, Switzerland.

The group also undergirds sports and cultural events, such as the Ironman 70.3 Salalah, which centres on its Hawana Salalah community, and the El Gouna Film Festival.

And the communities keep coming. In 2022, Orascom Development welcomed residents into its first community in the UK – a lakeside village in Cornwall, while the first phase of O West in Cairo was delivered in 2023.

Despite the inflationary pressure in Egypt, the real estate market remains vibrant, according to El Hamamsy, who notes: “The opportunities in Egypt, given its low asset prices post-devaluation and favourable demographics, make it an appealing prospect for serious investors.”

Looking ahead, Orascom Development is also in the early stages of developing a major new community in Chbika in southwestern Morocco, and at Al-Sawda Island, off the southern coast of Oman – both just parts of the huge land bank that the group is yet to develop into its singular vision of urban planning.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11358551/main.gif
John Bambridge

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Slow year for Maghreb power and water awards

    7 July 2025

     

    The Maghreb region has experienced a slow 2025 in terms of power and water project contract awards. Hopes for the year now rely on a strong second half if the sector is to match the performance of previous years.

    As of early July, the total value of power project contract awards had reached $663m, according to regional projects tracker MEED Projects. This means that by the end of the year, the market is expected to fall significantly short of the peaks of $3.8bn in 2023 and $4.5bn in 2024. 

    Libya’s recovery was a major driver in 2023, accounting for $2.9bn of the total for that year, while Algeria contributed $430m and Morocco $210m. There are no recorded power contract awards for Algeria or Libya in 2025. Morocco and Tunisia contributed $353m and $310m, respectively. 

    The total value of contract awards for water projects has also declined significantly. For the first six months of 2025, the total reached $189m, which is tracking behind the $815m of water project contract awards recorded in 2024.

    Both 2025 and 2024 are far behind the peak of $3.6bn registered in 2022, when Algeria alone accounted for $1.8bn of contract awards, followed closely by Morocco with $1.6bn. 

    For upcoming power and water contract awards, there are over $6bn of contracts in the bid or prequalification stage that are expected to be awarded within the next year. 

    In the water sector, Libya leads with $210m of soon-to-be-awarded contracts, followed closely by Tunisia at $260m. In the power sector, Morocco stands out with an impressive projected contract value of $5.3bn, while in Tunisia, there are $300m of upcoming power contract awards.

    Xlinks disappointment

    There have been some notable project developments in the power and water sectors across the Maghreb region over the past year. Most recently, at the end of June, the UK government withdrew its support for the Xlinks Morocco-UK power project.

    The UK Department for Energy Security and Net Zero decided not to consider a contract for difference for this large-scale renewable energy initiative, which aimed to deliver 3,600MW of renewable energy from Morocco to the UK via a 4,000-kilometre high-voltage direct current cable system.

    Sir Dave Lewis, chair of Xlinks, expressed disappointment, emphasising the project’s potential to significantly lower wholesale electricity prices in the UK.

    Power progress

    Other projects in Morocco are proceeding. The Ministry of Energy Transition & Sustainable Development has issued an invitation for expressions of interest for a major liquefied natural gas (LNG) infrastructure project at Nador West Med Port. This project includes an LNG import terminal, pipelines and a gas power station with a capacity of approximately 1,200MW. The project aims to enhance Morocco’s energy security and diversify its energy sources.

    Additionally, Morocco’s National Office for Electricity and Drinking Water has invited firms to submit expressions of interest for contracts to build three gas-fired power stations with a total capacity of between 300MW and 450MW. These plants are expected to be commissioned by the summer of 2026, further contributing to the country’s energy infrastructure.

    Water advancements

    In the water sector, Algeria has inaugurated the El-Tarf desalination plant, which has a production capacity of 300,000 cubic metres a day. This facility is part of Algeria’s broader desalination programme, which aims to address water scarcity issues exacerbated by climate change. The Algerian government has allocated $3bn for the second phase of its desalination capacity expansion, with plans to build six new plants by 2030.

    Morocco is also advancing its water infrastructure, with Veolia undertaking the detailed design for a new seawater reverse osmosis plant near Rabat. This facility is expected to treat up to 822,000 cubic metres of seawater daily and will cater to regions particularly affected by drought.

    Policy focus

    For policy, governments have been manoeuvring as they respond to the global challenge of climate change. 

    Morocco is progressing with its green hydrogen initiatives, which are closely linked to its water projects. The country has set ambitious targets to produce 52% of its energy from clean sources by 2030, with plans to develop large-scale green hydrogen projects. These projects will require significant water resources for electrolysis, further intertwining the power and water sectors.

    Morocco also aims to increase its renewable capacity to 10,000MW by 2030, with a focus on solar, wind and hydroelectric power. Despite the recent Xlinks setback, the country is also exploring opportunities for exporting electricity to Europe, which could significantly enhance its energy market.

    Algeria is pursuing other avenues in its quest to diversify its energy sources. In April, Algerian Minister of Energy, Mines and Renewable Energies, Mohamed Arkab, met with Wang Yongge, president of the China National Nuclear Corporation (CNNC), in Algiers. The two reviewed the ongoing cooperation between Algeria’s Commissariat for Atomic Energy (Comena) and CNNC, focusing on the peaceful use of nuclear energy, its medical applications and prospects for future development.

    The Algerian government also plans to invest heavily in desalination projects to ensure a sustainable water supply, with desalinated water expected to account for 60% of drinking water by 2030.

    Main image: Noor electric power station close to Ouarzazate, Morocco
     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14212527/main.gif
    Colin Foreman
  • Iraq to retender Baghdad Metro PPP project contract

    7 July 2025

    Iraq intends to retender the contract to develop and operate the Baghdad Metro project, following the award of the estimated $2.5bn contract last year.

    According to local media reports, Nasser Al-Assadi, adviser to Prime Minister Mohammed Sudani, stated that the previous developers had overestimated the project budget; therefore, the government will relaunch the entire process to implement the project.

    Iraq’s National Investment Commission (NIC) awarded an estimated $2.5bn contract to develop and operate the Baghdad Metro project in July last year.

    The contract was awarded to a consortium comprising France’s Systra, Societe Nationale des Chemins de fer Francais (SNCF) and Alstom; Spain’s Talgo and Sener; and Turkish contractors.

    Germany’s Deutsche Bank was the project finance adviser.

    The project will be developed as a public-private partnership (PPP) scheme using a design, build, operate, maintain, finance and transfer model.

    Malaysian consulting firms ConsultantHSS and HSS Engineering were working on the project.

    Project scope

    The Baghdad Metro project is one of the largest infrastructure schemes in Iraq.

    It will comprise seven main lines totalling 150 kilometres (km), 64 metro stations, four workshops and depots for trains, two metro train control and management centres and power generation stations.

    The Green Line will extend 19km and run from the Al-Alawi terminal to the Doura terminal. The Red Line will be 27.7km long and will run from the Al-Alwai terminal to Maisaloun Square.

    The Blue Line will run 22km from the Al-Shaab terminal to Al-Zafaraniya. The Purple Line will be 14.5km long and will connect Al-Tayaran Square to Al-Shaab.

    The Yellow Line will extend 30km from Al-Baladiyat to Adan Square. The White Line will be 23km long and will run from Al-Kadhimiya to Al-Bayaa, while the Airport Line will run 12km from Baghdad airport to Al-Qadisiya.

    Each line will comprise a total of eight stations.

    The trains will include a gold-class cabin, a special cabin for women and children, and tourist cabins.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14211465/main.jpg
    Yasir Iqbal
  • Ibri 3 construction deal implies Masdar win

    7 July 2025

     

    A Chinese consortium of China Energy Engineering International Corporation (CEEC), China Power Construction Group East China Survey & Design Institute Company (East China Institute) and China Energy Construction Group Hunan Thermal Power Construction Company (Hunan Thermal Power) says it has won an early works contract to build the Ibri 3 solar independent power plant (IPP) in Oman.

    The engineering, procurement and construction (EPC) contract was awarded by Abu Dhabi Future Energy Company (Masdar), implying it has won the IPP’s development concession.

    Masdar, alongside Korea Midland Power (Komipo) and the local Al-Khadra Partners, was one of four groups to bid for the contract to finance, construct and operate the IPP in February.

    Under the terms of the EPC contract, the CEEC consortium will build the 500MW solar photovoltaic (PV) power plant together with an associated 150MWh battery energy storage unit. 

    It will also install a 400kV substation and two 400kV overhead transmission lines as part of the deal, it says.

    The client, Nama Power & Water Procurement Company (Nama PWP), received prequalification applications for the Ibri 3 solar PV IPP contract in March last year.

    Previous projects

    The sultanate’s first 500MW solar IPP scheme, Ibri 2, came onstream in September 2021 and was officially inaugurated in January 2022.

    The Manah 1 and Manah 2 solar IPP projects, each with a capacity of 500MW, were recently inaugurated. 

    A team comprising France’s EDF and South Korea’s Korea Western Power Company (Kowepo) won the contract to develop the Manah 1 solar PV IPP project.

    A team of Singapore’s Sembcorp Industries and China-headquartered Jinko Power Technology was awarded the second 500MW solar PV IPP contract.

    In September last year, Nama PWP tendered the contracts to develop two wind IPPs.

    The Jalan Bani Bu Ali wind IPP will cater to Oman’s Main Interconnection System (MIS), while the Dhofar 2 wind IPP will cater to the smaller Dhofar Power System (DPS).

    Three other wind IPPs are expected to be tendered separately. They are:  

    • Duqm wind IPP: Located in Ras Madrakah in Duqm, the project will have a capacity of 234MW-270MW, with commercial operations expected in Q4 2027
    • Mahoot wind 1 IPP: Located in Mahoot in the Al-Wusta Governate, the wind farm will have a capacity of 342MW-400MW, with a commercial operation target of Q4 2027 
    • Sadah wind IPP: Located in Sadah in the Dhofar Governorate, it will have a capacity of 81MW-99MW and is due for commercial operation in Q4 2027

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14211645/main.gif
    Edward James
  • Kuwait tenders renewables substation job

    7 July 2025

    Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE) has tendered a contract for the construction of the Shagaya Z 400/132/11kV substation to serve the Shagaya solar power complex.

    Interested prequalified firms have until 5 August to bid for the contract, which has an estimated value of $120m. A date of 20 July has been set for the pre-bid meeting.

    MEWRE, through the Kuwait Authority for Partnership Projects (Kapp), issued a request for proposals in June for the contract to develop the state’s first utility-scale solar photovoltaic plant at Shagaya.

    Prequalified developers have until 14 September to submit technical and commercial bids for the Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one independent power project (IPP), which will have a total power generating capacity of 1,100MW.

    Kapp issued the request for qualifications for the developer concession in January 2024, with six prequalified companies and consortiums announced the following August. 

    Unlike the solar project, the Shagaya Z substation is being procured on an engineering, procurement and construction (EPC) basis directly by the ministry. Associated transmission and distribution work often form part of the developers’ scope of work, but will not be the case in this instance.

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14211467/main.gif
    Edward James
  • Riyadh tenders first Expo 2030 construction work

    7 July 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Expo 2030 Riyadh Company (ERC), tasked with delivering the Riyadh Expo 2030 venue, has tendered a contract to build the site offices required for the initial construction works at the project site in Riyadh.

    MEED understands that the contract was tendered on 29 May, with bids due in the first week of July.

    The announcement follows the establishment of ERC as a wholly owned subsidiary of the Public Investment Fund (PIF) that will build and operate facilities for Expo 2030 in June.

    In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”

    The masterplan for Expo 2030 Riyadh encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo. Situated to the north of the city, the expo site will be located near the future King Salman International airport, providing direct access to various landmarks within the Saudi capital.

    Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions, contributing to the event’s legacy. This initiative is expected to create opportunities for business and investment growth in the region.

    The expo is projected to attract over 40 million visitors. After the event concludes, ERC plans to convert the expo’s secured area into a global village, to serve as a multicultural centre for retail and dining. This development will also feature an international residential community with a range of amenities, with a focus on sustainable tourism practices.

    Expo 2030 Riyadh will run from 1 October 2030 to 31 March 2031.

    Last month, MEED reported that the PIF had named Talal Al-Marri as the CEO of ERC. 

    Al-Marri has previously held several senior executive roles at Saudi Aramco, including president and CEO of Aramco Europe, senior vice-president of community services and senior vice-president of industrial services.

    In May, MEED exclusively reported that Riyadh had begun talks with stakeholders in preparation for the commencement of construction work for the event.

    The discussions were understood to have been held with the Royal Commission for Riyadh City and the PIF.

    German architectural firm Lava Architects and US-based engineering firm Jacobs are assisting with the project masterplan and the design of infrastructure for the site.

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14211012/main.jpg
    Yasir Iqbal