Mohamed Alabbar : Egyptian market is the best place to invest among Arab countries
Since its inception more than 15 years ago, Emaar Misr, a subsidiary of the UAE Emaar Properties, has had considerable success in the Egyptian market by delivering innovative products in various parts of Egypt.
Emaar Misr’s distinction has contributed to achieving positive results over the past years.
The Egyptian real estate sector delivers highest returns and is our most important expansion target
UAE entrepreneur and businessman Mohamed Alabbar, the founder of Emaar Properties, emphasised the strength of the Egyptian market and its appeal for investment, citing vast and expanding demand, as well as Egypt’s current economic and political stability.
The Egyptian market is Alabbar’s top priority among the fourteen countries where the Company operates. According to Alabbar, the Egyptian market is the best place to invest among Arab countries.
Distinguished Profits
In 2021, Emaar Misr earned a consolidated net profit of EGP 4.12 billion & Revenues increased by more than 100% compared to 2020
Emaar Misr earned a consolidated net profit of EGP 4.12 billion in the fiscal year that ended in December, compared to EGP 1.9 billion in the previous fiscal year 2020, taking into account minority rights.
Revenues doubled to EGP 11.08 billion from January to December 2021, compared to EGP 4.68 billion the previous year. The cost of revenue increased to EGP 6.04 billion during the same period, up from EGP 2.96 billion in 2020.
In the fiscal year that ended in December, gross profit increased to EGP 5.03 billion, up from EGP 1.71 billion in the previous fiscal year. Earnings per share (basic and diluted) were 0.87 pounds, up from 0.38 pounds in the comparable period.
In terms of independent businesses, the Company made a net profit of EGP 4.119 billion between January and December 2021, compared to EGP 1.89 billion the previous year.
Egypt is the land of goodness, and despite the breakout of Covid-19, the Company has increased earnings, and the decision not to lockdown the country is one of the greatest decisions
Alabbar explained that even during the outbreak of Covid-19, the Company continued to make great profits, with earnings in 2020٠ exceeding those in 2019, saying Egypt is the land of goodness.
“Profits could be found in every project, whether in Cairo or on the North Coast. The demand in Egypt is good, but we must remember that the first three months of the Covid-19 epidemic in 2020 witnessed demand stagnate and dread spread.
President Sisi’s policy and guts in deciding not to lockdown the country and economy and instead to work and cohabit was one of the most important decisions, because all of the countries who decided to lockdown their economies had tremendous economic challenges,” he added.
Competitiveness
The market is robust, and there is fierce rivalry among businesses, which encourages the development of higher-quality products
Alabbar asserted that the Egyptian real estate market is thriving, and there is fierce rivalry among real estate development firms.
“This is advantageous to the customer since the greater the competition, the more average, good, and high-level developers emerge. This provides a strong real estate product since the development of the companies’ base helps not only the customer but also encourages developers to innovate in their products.”
“Today, I think that real estate companies must work honestly and focus on building quality in order to give the greatest level of services to residential communities, as well as after-sale services such as maintenance and other issues to help residents and investors address problems. If this strategy is being used, the Egyptian market will continue to grow indefinitely.” he explained.
The UAE entrepreneur stressed that real estate buyers’ rights are protected by law in all markets. The legislation of the United Arab Emirates, for example, is good and well-regulated. Egypt is drafting legislation to regulate the real estate sector and protect customers’ rights”.
Investments
We have decided to invest more than EGP 40 billion in the implementation of projects in West Cairo
He said that Emaar Misr has decided to invest roughly EGP 40 billion in Sheikh Zayed City projects, including the ‘Cairo Gate.’
“The Company strives to deliver a unique product that is comparable to its projects, and it is constantly eager to include the most up-to-date designs and services into projects.
Emaar (in love with the property) because we appreciate outstanding design and pay attention to the tiniest details, such as the length of the walkway, the trees, the lighting, the tennis courts, the children’s playgrounds, strolling and shopping areas, and everything a resident of all ages need. Human life and quality are very important to us.”
He added that “West Cairo, in my opinion, is a promising area with both possibilities and appealing features. Despite the range of projects, demand and need exist, and the (Cairo Gate) location is breathtaking, with all signs pointing to a positive outcome.”
Cairo Gate is a 133 -acre development in Sheikh Zayed with a total investment of EGP 11.5 billion.
Emaar Misr has also begun the process of constructing its second project in West Cairo, the “Belle Vie” compound, on a 500-acre plot in the New Zayed City.
This compound is distinguished by the presence of a 1400-meter-long green valley running through the project, a lake surrounded by green areas, a sandy beach, a social and sports club with a variety of activities, and a service centre with stores and restaurants.
Through the existence of an educational institution, Emaar Misr has also been interested in delivering exceptional educational services in this project.
“We (Emaar Misr) have a vision of investing in new areas, much as we began our projects in Mivida and Marassi in areas that were still in their infancy at the time, but we had a long-term goal of being present in these areas, which have grown into significant and essential centres over time.
This is what we envision at the Belle Vie site, which we regard to be the future of West Cairo because of its proximity to the Sphinx International Airport, the Smart Village business zone, the pyramids’ archaeological sites, and the Grand Egyptian Museum,” Alabbar added.
Expansion Plans
One of the areas we are interested in investing is the New Administrative Capital (NAC)
He also said that “Emaar Misr has long been interested in entering the Egyptian market.
One of the areas where the Company is interested in investing is the New Administrative Capital (NAC). There were serious steps taken, but they were thwarted by the outbreak of the Covid-19.
We are thrilled to be a part of the NAC, which is a massive project requiring a lot of effort,” he continues.
“If I were an investor, and I had to choose between Egypt, the UAE, and the United Kingdom, I would select Egypt first, then the UAE, and lastly comes the United Kingdom, depending on the returns achieved,” he concludes.
