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Orascom Construction, a Cairo-based construction firm led by Egypt’s richest family, has signed an agreement with the Internal Trade Development Authority (ITDA) to build, own and operate a strategic warehouse in Fayoum Governorate, Egypt.
The agreement with ITDA exemplifies Orascom Construction’s strategy of pursuing investments that provide construction opportunities, as well as long-term recurring income. It expands on the group’s existing investments and operations and maintenance contracts in renewable energy, water treatment, wastewater treatment, transportation, and facility management.
According to a press release issued by the family-led construction firm, the warehouse is part of the first phase of a larger program that will play an important role in providing modern logistics and warehousing of important commodities throughout Egypt.
Orascom Construction stated that the project will use cutting-edge technology and efficient operational methods to meet current and future needs for these commodities, and that construction will begin once financing is completed and will take up to 15 months, after which the warehouse will begin operations.
Orascom Construction is a multinational engineering and construction firm founded by Onsi Sawiris, a late Egyptian businessman who died on June 29 at the age of 91.
Through OS Private Trust Company, the billionaire Sawiris family owns 51.8 percent of the Egypt-based contractor, while Egypt’s richest man Nassef Sawiris owns 28.97 percent.
The group’s shares were trading at EGP65.7 ($3.364) per share as of Sept. 28. This is 1.33-percent lower than their opening price on the Egyptian Stock Exchange this morning.
In the second quarter of 2022, the leading construction group added $1.8 billion in new projects to its backlog of active construction projects.
The new projects increased the group’s total number of awards by 55 percent to $2.4 billion in 2022.
During the period under review, projects in Egypt accounted for 70 percent of new awards, as the group expanded its role in developing Egypt’s new high-speed rail system and signed a new 1,325-kilometer phase for the rail project.
