Orascom Development gets $155 million loan to support green tourism in Egypt

Timilehin Adejumobi -
Key Points
  • Orascom Development secures a $155 million Sustainability-Linked Loan from the IFC to fund green upgrades at El Gouna resort.
  • The loan will support energy efficiency, water conservation, and reduced emissions, helping El Gouna achieve EDGE green certification.
  • Orascom reports a 7.6% revenue increase in 9M 2024, with growth driven by real estate sales and recurring income.

Orascom Development Holding (ODH), a Swiss real estate firm majority-owned by Egyptian billionaire Samih Sawiris, has secured a $155 million Sustainability-Linked Loan (SLL) from the International Finance Corporation (IFC). The funds will support sustainability initiatives at ODH’s El Gouna resort, focusing on energy and water efficiency and reducing greenhouse gas emissions.

The loan comprises two tranches—$96 million and $57.3 million—aimed at financing green upgrades and unlocking growth potential in El Gouna. Key projects include the renovation of the Mövenpick Resort and Spa El Gouna, a cornerstone of the popular coastal destination.

Orascom's historic sustainability milestone

The initiative aligns with the World Bank's CCDR and CPF for Egypt, promoting sustainable private sector growth. Orascom's SLL, Egypt's first in tourism and real estate, aims for a 50 percent reduction in non-renewable energy use and a 20 percent decrease in water consumption. Backed by the IFC and verified by Moody’s, it supports El Gouna hotels in achieving EDGE green certification, setting them as leaders in resource efficiency.

“This partnership with IFC is a milestone in our mission to develop sustainable, integrated communities,” said Omar El Hamamsy, Group CEO of Orascom Development. “It reflects our commitment to energy efficiency, water conservation, and eco-friendly destinations like El Gouna, while enhancing liquidity, reducing capital costs, and driving Egypt’s economic growth.”

The IFC highlighted Egypt’s tourism sector as a critical driver of employment, foreign exchange, and tax revenue. “Our collaboration with Orascom Development reflects a shared vision of fostering a resilient and sustainable tourism industry in Egypt,” said Sérgio Pimenta, IFC’s Vice President for Africa.

Orascom Development's global reach

Orascom Development Holding (ODH), founded in 2008, develops integrated towns and resorts. With 33 hotels across seven countries, including Egypt, UAE, Oman, Switzerland, Morocco, Montenegro, and the UK, its key destinations include El Gouna, Taba Heights, O-West in Egypt, The Cove in the UAE, Jebel Sifah in Oman, and Luštica Bay in Montenegro.

Samih Sawiris, who founded the company, stepped down as chairman in December 2021 after nearly 30 years. His son, Naguib, took over in May 2022. Naguib, former vice chairman and board member, oversees a global investment portfolio and chairs edtech firm Yup Technologies.

ODH reported a 7.6 percent revenue increase in 9M 2024, reaching CHF437 million ($491.5 million), driven by strong real estate sales and improved recurring income. The company’s focus on sustainable development is expected to boost its position in the global tourism market.