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
  • Public Investment Fund backs Neom

    16 April 2026

    Commentary
    Colin Foreman
    Editor

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Public Investment Fund (PIF) has backed Neom by including it as one of six strategic ecosystems in its newly approved 2026-30 strategy.

    The future of the $500bn gigaproject had been thrown into doubt following the postponement of the 2029 Asian Winter Games at the Trojena mountain resort, the cancellation of construction contracts – such as the $5bn deal with Italian contractor Webuild for dam works at Trojena – and the slowdown of development at The Line, where tunnelling contracts were cancelled and staff left the project.

    The backing comes as Neom’s operational focus appears to be evolving in response to shifting regional dynamics and global economic conditions. For example, on 15 April Neom posted on its official X account about a new Europe-Egypt-Neom-GCC corridor, describing it as a faster route for time-sensitive goods. It said the corridor combines trucking and ferry services to move goods quickly into the Gulf, adding that importers from several European markets are already using it to reach the UAE, Kuwait, Iraq, Oman and beyond.

    Powered by Pan Marine, DFDS and regional RoPax services, the initiative is positioned as a way to add flexibility and resilience to regional supply chains. This emphasis on logistics and immediate trade utility suggests a shift away from the more speculative architectural announcements that characterised Neom’s early years, towards activity more directly tied to current market realities.

    PIF’s broader 2026-30 strategy places heavy emphasis on “delivering competitive domestic ecosystems to connect sectors, unlock the full potential of strategic assets, maximise long-term returns and continue to drive the economic transformation of Saudi Arabia”.

    The inclusion of Neom as a standalone ecosystem within the Vision Portfolio suggests that while the project remains part of the kingdom’s Vision 2030 goals, it will be subject to the fund's focus on working with the private sector.

    That means the long-term success of Neom will increasingly depend on its ability to attract external investment and function as a viable economic hub rather than just a state-funded construction site.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16417262/main.jpeg
    Colin Foreman
  • Kuwait gas project worth $3.3bn put on hold

    16 April 2026

     

    State-owned Kuwait Gulf Oil Company’s (KGOC’s) planned tender for the development of an onshore gas plant next to the Al-Zour refinery has been put on hold due to uncertainty created by the US and Israel’s war with Iran, according to industry sources.

    The project budget is estimated to be $3.3bn, and the last meeting with contractors to discuss the project took place in Kuwait on 10 February.

    Previously, it was expected to be tendered in late March, but the tendering process was delayed due to the regional conflict and disruption to shipping through the Strait of Hormuz.

    One source said: “This tender is now effectively on hold while KGOC waits for increased stability in the region before it invites companies to bid for the contract.”

    Under current plans, the plant will have the capacity to process up to 632 million cubic feet a day of gas and 88.9 million barrels a day of condensates from the Dorra offshore field, located in Gulf waters in the Saudi-Kuwait Neutral Zone.

    Ownership of the field is disputed by Iran, which refers to the field as Arash.

    Iran claims the field partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development.

    It is believed that the Dorra field’s close proximity to Iran will make development difficult due to the current security environment.

    The offshore elements of the project are expected to be especially difficult to protect from attacks from Iran.

    In July last year, MEED reported that KGOC had initiated the project by launching an early engagement process with contractors for the main engineering, procurement and construction tender.

    France-based Technip Energies completed the contract for the front-end engineering and design.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16413221/main.png
    Wil Crisp
  • Iraq pushes to revive oil pipeline through Saudi Arabia

    16 April 2026

    Iraq is pushing to revive an oil pipeline that passes through Saudi Arabia, allowing it to diversify export routes.

    Saheb Bazoun, a spokesman for Iraq’s Oil Ministry, said the pipeline would help to insulate Iraq from any future blockades of the Strait of Hormuz, which has been largely closed since 28 February.

    The original pipeline through Saudi Arabia has not been used for more than 30 years and would need work to be done in order to bring it online.

    It is 1,568km long, extending from the city of Zubair in Iraq to the Saudi port of Yanbu on the Red Sea.

    The pipeline was built in two phases during the 1980s. The first phase stretches between Zubair and Khurais, while the second extends to Yanbu. The pipeline’s operating capacity reached over 1.6 million barrels a day (b/d).

    Following the Gulf War, the pipeline was shut down in August 1990. It has remained out of operation for decades, despite Iraq’s several attempts to restart it.

    The original pipeline project cost over $2.6bn, including storage tanks and loading terminals.

    In the wake of the US and Israel attacking Iran on 28 February, global markets have lost 11 million barrels a day (b/d) of oil supply due to the effective closure of the Strait of Hormuz.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16413290/main.jpg
    Wil Crisp
  • Algeria opens bidding for water treatment plant

    15 April 2026

     

    State-owned Cosider Pipelines, part of Algeria’s public infrastructure group Cosider, has issued a tender for the construction of a demineralisation plant in In Salah in Algeria.

    The contract covers the design, supply, installation, testing and commissioning of a plant with a treatment capacity of 62,000 cubic metres a day (cm/d).

    The tender is open to local and international companies specialising in the design and construction of demineralisation and reverse osmosis desalination plants.

    The bid submission deadline is 26 April.

    The project will be located at In Salah, a key industrial area in southern Algeria, where treated water supply is important for both municipal and industrial use.

    Cosider said that individual bidders must demonstrate that they have completed at least one reverse osmosis demineralisation or desalination plant with a capacity of 20,000 cubic metres a day or more.

    They must also show an average annual turnover of at least AD1bn ($7.7m) for their five best years over the past decade.

    For consortium bids, all partners must share full responsibility for the contract, while the lead company must meet the technical and financial requirements.

    Recent projects

    In 2023, MEED reported that Riyadh-based water utility developer Wetico had won two contracts to develop water desalination plants in Algeria.

    Societe Algerienne de Realisation de Projects Industriels (Sarpi) awarded the contract for the El-Tarf desalination plant, while Entreprise Nationale de Canalisations (Enac) is the client for the Bejaja facility.

    Both plants were commissioned in 2025, each with a production capacity of 300,000 cm/d.

    Separately, Wetico was the main contractor on a third plant commissioned last year. The Cap Dijinet 2 seawater desalination plant in Boumerdes province covers 18 hectares and also has a capacity of 300,000 cm/d.

    Like many countries, Algeria is facing pressure on resources due to longer and more frequent droughts. Seawater desalination is seen as a key driver of the government’s strategy to guarantee drinking water supply.

    According to previous reports, the government is planning to build up to six additional plants by 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16404325/main.jpg
    Mark Dowdall
  • WEBINAR: UAE Projects Market 2026

    15 April 2026

    Webinar: UAE Projects Market 2026
    Tuesday, 28 April 2026 | 11:00 GST  |  Register now

    Agenda:

    • Overview of the UAE projects market landscape
    • 2025 projects market performance
    • Value of work awarded 2026 YTD
    • Impact of the Iran conflict on the projects market and real estate, assessing supply chain disruptions, material cost inflation and war risk premiums
    • Key drivers, challenges and opportunities
    • Size of future pipeline by sector and status
    • Ranking of the top contractors and clients
    • Summary of key current and future projects
    • Short and long-term market outlook
    • Audience Q&A

    Hosted by: Colin Foreman, editor of MEED 

    Colin Foreman is editor and a specialist construction journalist for news and analysis on MEED.com and the MEED Business Review magazine. He has been reporting on the region since 2003, specialising in the construction sector and its impact on the broader economy. He has reported exclusively on a wide range of projects across the region including Dubai Metro, the Burj Khalifa, Jeddah Airport, Doha Metro, Hamad International airport and Yas Island. Before joining MEED, Colin reported on the construction sector in Hong Kong.

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16401868/main.gif
    Colin Foreman