Orascom’s success story: A model for Egypt’s economic resurgence
Egypt is banking on a series of mega real estate projects to revitalise its economy. First came the $35bn Ras Al Hekma deal with the UAE’s ADQ to develop a 170-kilometre stretch of prime Mediterranean coastline in northern Egypt.
This deal, the largest single foreign direct investment in Egypt’s history, proved a lifeline for the country, which was grappling with debt. It also helped pave the way for debt reduction along with an IMF package and several FDI MoUs with EU countries.
Additionally, the success of the ADQ development plan set the stage for the more recent $21bn South Med project, also located along the northern Mediterranean coast. The project, to be developed by Egyptian real estate giant Talaat Moustafa Group in partnership with the Egyptian government, is expected to attract investments worth $20.7bn and generate sales of $33bn.
Alongside other initiatives, such as New Alamein City on the Red Sea coast, these projects are expected to attract foreign tourists, especially from higher-spending segments in Europe and Arab countries.
More importantly, the South Med project is expected to create 1.6 million direct jobs in construction and related industries, significantly boosting Egypt’s economy.
While the scale of these projects is unprecedented, they follow a model first established decades ago by Egyptian entrepreneur and construction pioneer Samih Sawiris through the creation of the El Gouna township along Egypt’s eastern coast.
Orascom: Building sustainable communities
In 1989, Sawiris founded Orascom Development, with a vision of creating sustainable communities that blend seamlessly into their natural surroundings. The company’s first project was a groundbreaking endeavour on Egypt’s Red Sea coast, in an area known for its untouched beauty.
The vision was simple: to build a town that offered not just homes, but an entire living experience. It began modestly, with homes for friends and family, and eventually expanded into a full-fledged town complete with hotels, marinas, golf courses, schools, hospitals, and retail centres.
This holistic approach became the blueprint for Orascom’s future developments. As Omar El Hamamsy, Orascom Development’s group CEO, explained, “You start by building homes, then add hotels for visitors, followed by activities that make use of the environment—like marinas, golf courses, and downtown areas. Gradually, a small community grows into a town with permanent residents.”
Expansion beyond Egypt
By the early 2000s, the success of El Gouna became evident. This “virgin spot on the Red Sea,” as the CEO described it, had blossomed into a bustling yet serene town. Its success was not only due to the scenic location but also due to how the development integrated with the environment, preserving natural lagoons, wildlife, and landscapes.
Over three decades later, Orascom has expanded its model of integrated living across five countries, revolutionising how people live, work, and play, setting new industry standards.
From Egypt’s Red Sea shores to the Swiss Alps, Orascom’s developments have transformed environments and lifestyles alike.
El Hamamsy attributes Orascom’s success to Sawiris’s passion for life, nature, architecture, and design, which shaped the early projects. According to him, Sawiris’s lifestyle reflected the ethos of the communities Orascom sought to create—places where residents could enjoy a balanced life amidst beautiful landscapes, modern amenities, and sustainable practices.
Today, Orascom operates ten towns in countries such as Egypt, the UK, Switzerland, Montenegro, and Oman. Each town is designed around core principles: respect for nature, sustainability, and enhancing the quality of life for residents and visitors. These towns are vast, integrated communities, often spanning millions of square metres.
El Hamamsy highlighted this point, stating, “The aggregate land bank we have is 100 million square metres. On average, each development encompasses millions, not just hundreds or thousands, of square metres.” This scale sets Orascom apart from traditional real estate developers, positioning it as a leader in creating vibrant, self-sustaining towns.
From Egypt to Switzerland
Orascom’s expansion has been driven by both passion and opportunity. Samih Sawiris’s love for the sea and desert led to the development of multiple coastal communities along Egypt’s Red Sea, such as Makadi Heights and Taba Heights. These areas offer pristine beaches and modern, comfortable living.
Similarly, in Oman, the town of Jebel Sifah, located 40 minutes from Muscat, exemplifies how Orascom adapts its vision to local contexts while retaining its core ethos. Residents can enjoy activities like kitesurfing, and take a sunset boat ride, all within a community designed to blend into the desert and coastal environment while continuing to work remotely.