Table of Contents
Key Points
- Madinet Masr, led by Abdallah Sallam, is shifting into the non-residential sector, launching 18,000 square meters of retail space in the Tajed project (Q4 2024).
- Madinet Masr is in talks to enter Saudi Arabia and exploring three other markets, signaling its global expansion ambitions.
- In 2024, net profit surged 38% to EGP 2.95 billion ($58.3 million), driven by a 31.9% rise in contracted sales and a 7.2% increase in net operating revenues.
Madinet Masr Housing and Development (MNHD), a leading Egyptian real estate developer led by Abdallah Sallam, is making a bold move into the non-residential sector. The company has announced plans to launch commercial projects, marking a significant shift in its business strategy.
Expanding beyond housing
The first step in this expansion is an 18,000-square-meter retail space within the Tajed project, scheduled to open in the fourth quarter of 2024. A major Carrefour branch will anchor the development, alongside other well-known retail brands.
Sallam, the company's president and CEO, highlighted that commercial and administrative developments will be key revenue drivers, contributing significantly to Madinet Masr’s long-term financial growth. In addition to venturing into retail and office spaces, the company is setting up new subsidiaries. One will focus on hospitality and hotel management, while details on the second remain under wraps.
Beyond Egypt, Madinet Masr is pushing into new international markets. The company is in advanced talks to enter Saudi Arabia and is also exploring three other global markets, signaling its ambition to grow beyond its home turf.
Growth and transformation under Sallam
Founded in 1959, Madinet Masr has transformed from a state-run entity into a powerhouse in Egypt’s real estate market. Since taking the helm, Sallam—who holds a 5 percent stake in the company—has driven significant expansion. He also founded MINKA Development, which has since become an integral part of Madinet Masr’s portfolio.
In 2024, the company expanded its land holdings by 34% to 12.8 million square meters—the first major increase in 65 years. Meanwhile, its marketing budget has grown 20-fold in the past three years, strengthening its brand presence.
Despite rapid expansion, the company remains financially solid and has no immediate plans to raise capital. Investments are expected to double in 2025, and the number of shareholders has climbed to 18,000, underscoring growing investor confidence.
Strong financial performance
Under Sallam’s leadership, Madinet Masr delivered strong financial results in 2024, with net profit climbing 38 percent to EGP2.95 billion ($58.3 million). This growth was supported by higher contracted sales and a 7.2 percent increase in net operating revenues.
The company’s contracted sales for the year jumped 31.9 percent to $910.98 million, driven by strategic expansion and key projects like Taj City and Sarai. These developments have strengthened its position in Egypt’s real estate sector. With a market capitalization of nearly $185 million, the Cairo-based developer continues to grow its presence.
