Table of Contents
Key Points
- Madinet Masr secures $177 million syndicated loan led by CIB to advance flagship Taj City and Sarai developments.
- Loan consortium includes seven banks, reinforcing Egypt’s real estate growth and bridging housing demand gaps.
- Madinet Masr reports 88.9% profit growth, driven by doubled sales and 62.9% revenue increase.
Madinet Masr, a leading real estate developer led by Egyptian real estate tycoon Abdallah Sallam, has secured a $177 million syndicated loan to propel the expansion of its flagship Taj City and Sarai developments.
The financing, led by Commercial International Bank (CIB), comes as a crucial step in the company's strategy to address Egypt’s growing housing demand and create a significant economic impact.
The syndicated loan, arranged by a consortium of seven banks, including First Abu Dhabi Bank–Egypt and Al Baraka Bank–Egypt, aims to support the construction of residential projects in Cairo’s East and New Cairo districts, pivotal areas for Egypt’s real estate growth.
The development projects, which are set to generate more than five million jobs, will help bridge the housing gap, underscoring the importance of real estate in Egypt’s broader economic recovery.
Strategic financial backing from key banking partners
With the real estate sector contributing 20 percent to Egypt’s GDP and projected to rise to 22 percent by 2025, the loan emphasizes the sector's vital role in driving economic growth. CIB, as the lead arranger, contributed EGP4.5 billion ($88.3 million), with First Abu Dhabi Bank–Egypt providing EGP1.35 billion ($26.5 million), signaling strong backing from the banking sector for Egypt’s real estate potential.
Abdallah Sallam, CEO of Madinet Masr, expressed confidence in the company’s vision, saying, “This financing is a testament to the trust the banking sector places in our operational expertise. We remain committed to developing sustainable, future-focused communities.” Amr El-Ganainy, Deputy CEO of CIB, highlighted the role that such projects will play in addressing Egypt’s fast-growing housing needs, particularly in East Cairo, where demand is surging.
Driving growth in East Cairo and beyond
Madinet Masr, founded in 1959, has grown into a leading player in Egypt’s real estate sector under Sallam’s leadership. With a 5 percent stake in the company, Sallam also founded MINKA Development, a key part of Madinet Masr’s portfolio. The company recently secured an $11.6 million agreement with ASEC Automation to advance infrastructure for the Sarai project.
Reflecting its growth trajectory, Madinet Masr posted an impressive 88.9 percent surge in net profit, surpassing $50 million. This growth was fueled by a more than twofold increase in contracted sales and a 62.9 percent rise in revenue, signaling the company's strong position within Egypt’s competitive real estate market.
