Orascom Development Egypt (ODE), a leading subsidiary of Orascom Development Holding (ODH) controlled by Egyptian billionaire Samih Sawiris, kicked off 2024 with a bang. The company reported a robust 41.4 percent increase in revenue in the first quarter (Q1) of 2024.
ODE’s Q1 2024 revenue climbed to EGP4.18 billion ($89.06 million), up from EGP2.95 billion ($62.96 million) in the same period last year. This builds on the company’s strong performance in 2023, which saw revenue surge by 74.9 percent.
The double-digit growth in Q1 2024 is attributed to accelerated construction activity across its various destinations and improved performance across all its operating segments.
Real estate sales jump
Net real estate sales for ODE witnessed a significant leap of 218.3 percent to EGP8.76 billion ($186.63 million) from EGP2.75 billion ($58.62 million) in Q1 2023. Notably, 43 percent of sales came from international customers.
El Gouna remained the group’s largest contributor by sales (47 percent), followed by O West (39 percent) and Makadi Heights (14 percent). However, foreign exchange (FX) losses due to the devaluation of the Egyptian Pound (EGP) impacted Makadi Heights’ performance.
Resilience in challenging times
Commenting on the results, Omar El-Hamamsy, Group CEO of Orascom Development, expressed confidence in the company’s resilience despite a challenging economic environment.
“Our first quarter results have once again demonstrated our ability to successfully adapt to and navigate a challenging macroeconomic backdrop that continues to impact our entire line of business,” he stated. “However, our diversified business model has enabled our core underlying business to deliver an outstanding performance despite rising inflation, geopolitical instability, and the devaluation of the EGP, which affected our operational results.’’
El-Hamamsy concluded, “We continue to keep a close watch on market dynamics and are confident that our experience and strength will continue to allow us to navigate any future challenges.”
Orascom: Sawiris legacy in Egyptian real estate
Orascom Development Egypt, a subsidiary of ODH, falls under the umbrella of businesses associated with the Sawiris family, one of Egypt’s wealthiest.
Founded in 2008 by Samih Sawiris through the merger of Orascom Projects for Touristic Development and Orascom Hotels and Development, the company has established itself as a major player in the Egyptian real estate sector.
After nearly three decades at the helm, Sawiris stepped down as chairman of Orascom Development Holding AG in December 2021. Despite this leadership change, the company maintains its proven track record of creating iconic masterpieces and developing unique destinations.
