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
  • Egypt approves plans for 869MW wind power plant

    22 June 2026

    Egypt’s Cabinet has approved plans for French renewable energy developer Voltalia to develop an 869MW wind power project.

    The scheme will be built on land allocated by the New & Renewable Energy Authority (NREA), according to a statement posted by the Cabinet following its most recent weekly meeting.

    Voltalia will make an initial investment of $53m and has committed to achieving commercial operations by December 2028.

    Voltalia already operates the 32MW Ra solar plant at the Benban solar complex in Aswan and is expanding its renewable energy portfolio in Egypt.

    Previously, in 2024, it signed a framework agreement with Egypt’s Taqa Arabia to develop a green hydrogen and renewable power cluster near the Ain Sokhna port in the Suez Canal Economic Zone.

    The green hydrogen development is planned in two phases, each centred on a 500MW electrolyser powered by more than 1.3GW of renewable generation capacity. The project, still in its early stages, is expected to produce up to 350,000 tonnes of green ammonia a year.

    Voltalia’s partnership with Taqa Arabia also includes plans for a 3.2GW hybrid wind and solar project to repower the existing 545MW Zafarana wind farm in Suez Governorate. The Cabinet statement did not indicate whether the newly approved 869MW wind project forms part of that proposal.

    Meanwhile, the developer won another contract, earlier this year, to develop a 132MW solar power project in Tunisia’s Gabes region.

    The project, known as Wadi, marked Voltalia’s third major solar award in the country after the Sagdoud and Menzel Habib projects awarded in 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17376730/main.jpg
    Mark Dowdall
  • Local firm signs Jeddah drainage contracts

    22 June 2026

    Local contractor Alkhorayef Water & Power Technologies (AWPT) has announced it has signed two contracts with Jeddah Municipality to operate and maintain stormwater and surface water drainage networks across the city.

    The contracts have a combined value of SR202.06m ($53.9m), and each will run for five years.

    The first contract, valued at SR108.46m ($28.9m), covers the operation and cleaning of stormwater and surface water networks in the South and Al-Malisa sub-municipalities.

    The second contract, worth SR93.59m ($25m), covers similar services for the Airport Sub-Municipality.

    In March, MEED reported that the firm had won a long-term contract to carry out work in the airport’s sub-municipality area. The agreement was signed on 16 June.

    Elsewhere, construction has yet to begin on phases one and two of the King Abdullah Road-Falasteen Road tunnel project, each valued at about $175m.

    According to sources, Jeddah Municipality selected Saudi contractor Thrustboring Construction Company to build the large-diameter stormwater drainage tunnels in 2025. However, an official agreement has yet to be signed.

    The municipality was also previously planning to rehabilitate the existing Al-Zahra pumping station. Prequalification for the project began in 2020; however, it is understood that the main contact tender was cancelled last year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17376097/main.jpg
    Mark Dowdall
  • Saudi firm signs Uzbekistan water treatment PPP

    22 June 2026

    Saudi-listed Miahona has signed a public-private partnership agreement to enhance, operate and maintain Uzbekistan’s Zomin water treatment plant in the country’s Jizzakh region.

    The agreement was signed on 18 June with Uzsuvtaminot, the country’s state-owned water utility, the developer said in a filing with the Saudi stock exchange.

    Miahona will carry out enhancement works and 25 years of operation and maintenance services for the existing plant, which has a design treatment capacity of 50,000 cubic metres a day

    The contract marks the company’s entry into Uzbekistan’s water sector. According to the disclosure, it will enter into force once a project-related governmental decree is issued in accordance with Uzbekistan’s applicable legislation.

    The contract is estimated at $105m (SR395m), with a final value to be confirmed following the issuance of the governmental decree.

    MEED reported earlier this month that Uzbekistan had stepped up its engagement with Middle Eastern investors, including holding talks with Saudi Arabia’s Acwa and Vision Invest on renewable energy, water management, waste recycling, digital infrastructure and urban utility projects.

    The government also recently held discussions with a UAE delegation led by Suhail Mohamed Al-Mazrouei, minister of energy and infrastructure and chairman of Etihad Water & Electricity’s Board of Directors.

    At the Tashkent International Investment Forum, it signed a €197m financing package with Germany’s KfW Development Bank to support drinking water supply and wastewater projects in the Surkhandarya and Fergana regions.

    The projects will cover Termez and several district centres in Surkhandarya region, as well as Kokand and Margilan in Fergana region.

    This includes “the construction and reconstruction of hundreds of kilometres of drinking water and wastewater networks, pumping stations and modern wastewater treatment facilities”, deputy prime minister Jamshid Khodjaev said.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17375811/main.jpg
    Mark Dowdall
  • Qiddiya seeks contractors for indoor arena project

    22 June 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabian gigaproject developer Qiddiya Investment Company (QIC) has invited contractors to prequalify for a contract to build an indoor sports arena within its Qiddiya entertainment city project.

    The invitation was issued on 21 May, with a submission deadline of 28 June.

    The multipurpose arena is designed to International Olympic Committee standards.

    It will be located in District 18, in the Uptown South area of Qiddiya.

    Once completed, the indoor arena will be capable of hosting a wide range of sports, cultural and entertainment events.

    The arena will feature numerous sports courts for basketball, handball, futsal, volleyball, tennis, boxing and gymnastics.

    It will have a seating capacity of 18,000 spectators.

    The project is scheduled for completion by 2030.

    QIC’s other major projects include an e-sports arena, the National Tennis Centre, Prince Mohammed Bin Salman Stadium, a motorsports track, a racecourse, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    QIC opened the Six Flags theme park to the public in December last year.

    The park covers 320,000 square metres and features 28 rides and attractions, including 10 thrill rides and 18 aimed at families and young children.

    The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17375504/main.jpg
    Yasir Iqbal
  • Egypt signs gas deal with Harbour Energy

    22 June 2026

    Egypt’s Ministry of Petroleum & Mineral Resources has signed a new agreement with London-headquartered Harbour Energy.

    Under the scope of the agreement, Harbour Energy will drill two new exploration wells and carry out maintenance work for one of the existing wells within the Dsouq-1 development contract.

    Harbour Energy committed an initial $6m investment and a $1m signing bonus for the Dsouq concession. Total investment could rise to $18m if commercial discoveries are made.

    The signing was witnessed by Egypt’s Minister of Petroleum, Karim Badawi.

    He said that his ministry is continuing to implement a package of investment measures and incentives aimed at encouraging partners to increase investments and intensify exploration, development and production activities.

    The agreement was signed by Syed Saleem, a member of the executive branch of the state-owned Egyptian Natural Gas Holding Company (EGAS), and Samah Sabry, the executive director of Harbour Energy for the Middle East and North Africa region.

    Harbour Energy drilled two new wells in Egypt during the fiscal year 2025/2026, resulting in the addition of reserves estimated at 35 billion cubic feet of gas.

    The company aims to drill three new exploration wells during the fiscal year 2026/2027.

    Egypt is currently pushing to boost the production of both oil and gas in its territory.

    Earlier this month, Egypt’s Ministry of Petroleum & Mineral Resources announced that it had fully settled all outstanding arrears owed to oil and gas companies.

    Two years ago, in June 2024, the country owed approximately $6.1bn to partners in the oil and gas sector.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17374536/main4731.jpg
    Wil Crisp