The Saudi Egyptian Construction Company (SECON) intends to inject over EGP 2bn into its projects in Egypt throughout 2017, according to the company’s CEO Darwish Hassanein.
He added that the company will continue implementing its existing projects, including Nile Tours on Maadi Corniche, Riyadh Secon in New Cairo, Dorra Assiut in New Assiut, and Secon Resort in New Damietta. Moreover, he said that the company will also implement new projects, which it is considering now to select the ones that best match its criteria and bring added value to investments.
The company raised its capital by $243m in 2015, boosting it to $318m. The Saudi government paid its 50% stake in cash in the amount of $121.5m. The Egyptian government, on the other hand, paid for its share by providing three plots of land of 97 feddans in New Assiut, New Cairo, and New Damietta.
Hassanein said that the real estate sector is facing many challenges in the current period on the back of the flotation of the pound, which depreciated the value of the national currency. He explained that the decision was welcomed, but had negative repercussions.
He stressed that the timing of important decisions is as vital as the decisions themselves. “If an important decision comes late, it will not lead to its desired purpose and could even create expendable problems,” he noted.
He stressed the importance of calculating the exchange rate gaps for construction companies as soon as possible, as project costs are rising quickly.
He added that calculating the gap will ensure the achievement of justice and economic development and benefits all parties, noting that delaying these differences will cause construction companies—especially small- and medium-sized companies—to suffer losses and impact their ability to complete their projects.