Darwish Hassanein, CEO of Saudi Egyptian Construction Company for Real Estate (SECON), said that the Egyptian real estate sector has been capable of achieving high growth rates during the past period, despite many challenges and consecutive changes since 2011. The sector has managed to regain the trust and confidence of several banking institutions.
He pointed out that the sector is attractive for investment and has the ability to generate the highest revenues in comparison to the Middle East and the Arab region as a whole.
Hassanein said that the sector will witness high growth rate in the upcoming period, given the current political and security stability, and an increasing demand on different types of housing units.
The government’s efforts to take measures that support investment in the sector are believed to be one of the most important factors contributing to the increasing investments in the current and upcoming period, he added.
SECON has never stopped doing business, Hassanein explained, even during the turmoil Egypt was going through. This is proven by the companies issued tenders to execute one of its big projects—the Nile Towers—after the 25 January Revolution, due to its confidence in the Egyptian market.
The company has also signed a joint funding contract worth EGP 600m with Egypt Bank and Al-Ahli Bank to fund the project, Hassanein said. SECON’s current paid capital reaches $316m. This shows the trust the banking institutions have in the current financial and insurance status of SECON, he added, stating that it also emphasises how serious SECON is about the market, its belief in the ability of the real estate sector’s recovery, and in generating profits that cover the loans.
Hassanein also said that the company enjoys liquidity, especially in its latest capital increase, which enables the company to fund the whole project without taking loans from banks.
However, the basic feasibility study that was conducted before the increase in capital included financial and loans costs’ so the company decided to complete the project using it, he said, while taking advantage of the liquidity it has in funding new projects that help in offering more housing units, employing more people, increasing the profits of the company, and increasing the availability of financial resources for the country’s treasury through taxes.
The Central Bank of Egypt confirmed that it had been ensuring the implementation of reform procedures to support the investment climate and control the increasing prices of the US dollar in the informal exchange markets, though these procedures were not enough, he added.