Al Ahly Sabbour Developments plans to expand land bank by 5 million sqm in 2023

Daily News Egypt
5 Min Read

Al Ahly Sabbour Developments, one of the leading real estate developers in Egypt, has announced its ambitious business strategy for the current year, which includes two main aspects: internal restructuring and accelerating construction rates in its existing projects.

The company’s Chairman, Ahmed Sabbour, said that the company has launched new subsidiary companies to enhance its performance and efficiency, as well as changed its brand identity, administrative headquarters, and management philosophy.

He added that the company’s priority is to deliver about 4,000 units in 2023, compared to 1,200 units in 2022, by directing investments worth EGP 5bn, almost double the amount of last year. The company aims to achieve sales worth EGP 11.5bn in 2023, up from EGP 7.6 bn in 2022.

Sabbour revealed that the company has contracted with El Hazek Construction to build the first phase of the KEEVA project, which represents 30% of the development, with a total value of EGP 900m. He also said that the company has delivered the first phase of Gaia resort in North Coast, with a total of 530 units, and plans to deliver another 500 units before the summer of 2024.

Moreover, Sabbour said that the company is delivering units in Green Square and L’avenir projects in Mostakbal City, east Cairo. He noted that Al Ahly Sabbour has a land bank of 6 million sqm and serves about 40,000 families in its various projects.

New projects and partnerships

As for the company’s expansion plan, Sabbour said that the company is negotiating investment opportunities in various areas, such as Mostakbal City, New Cairo, Sheikh Zayed, Ain Sokhna, New Alamein, New Administrative Capital, North Coast, and the most vital areas in Egypt. He said that the company is interested in developing projects in partnership with land-owning entities, as this system has proven its effectiveness. 

He added that the company aims to sign one or two contracts for new projects before the end of 2023 and increase its land bank by 5 million sqm in 2023, especially in light of the diversity of investment opportunities available in the real estate market based on the comprehensive urban renaissance that Egypt is currently witnessing. Despite the market’s challenges, investment opportunities are available to serious companies with strong financial solvency and comprehensive market studies.”

Regional expansion and foreign sales

Al Ahly Sabbour Developments has signed a strategic partnership with the Saudi Ministry of Municipal Rural Affairs & Housing, on the other side the company has announced the launch of a new subsidiary company in Saudi Arabia, as part of its expansion plan in the region.

Sabbour pointed out that the new company will negotiate and develop projects in the Kingdom, especially in Riyadh. He said that the company is expected to start a project, either residential or commercial, by the beginning of 2024.

He added that the Saudi market is booming at all levels, offering investment opportunities and incentives for foreign companies, as well as comprehensive regulation and financing for both developers and customers.

He revealed that the company has established four other companies affiliated to Al Ahly Sabbour Developments, which are specialized in finishing & furnishing, facility management, marketing, and selling different projects.

He explained that the first company, Grandy, offers finishing services for customer units in installments, with high-quality standards. The second company, in cooperation with the Emirati Eltizam Asset Management Group, manages Al Ahly Sabbour’s projects and other projects in the market. The third company markets and sells units in the real estate market, either developed by the state or by other companies. The fourth company focuses on non-residential projects, such as commercial and administrative properties, lodging, hotel apartments, and sports properties.

Sabbour stated that the company has a large number of hotel units in its projects, such as KEEVA and GAIA North Coast. He said that the company plans to operate all its serviced residences within five years.

Regarding sales to foreigners, Sabbour said that the company’s total sales to foreigners reached 5% and they aim to increase it to 10%. He said that the state and real estate companies are making strong efforts to support real estate export, as many factors stimulate property export, such as the diversity and quality of real estate products offered in the Egyptian market.

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