23 May, 2022
Orascom Construction PLC (NASDAQ Dubai: OC; EGX: ORAS) announces that Suez Industrial Development Company (SIDC), a majority-owned subsidiary, signed an agreement with Al Ahly Capital Holding (ACH), the investment arm of the National Bank of Egypt, to jointly develop a 2.2 million square meter industrial park in Abu Rawash (Giza), Egypt.
The industrial park is strategically located at the crossroads of major transportation links connecting Greater Cairo to Alexandria and other governorates, creating the potential to become a leading hub for a wide range of sectors including logistics, light industries, and SMEs.
SIDC will be the lead developer of the industrial park, leveraging its expertise as Egypt's first private industrial developer of a 10 million square meter industrial zone in Sokhna, Egypt to provide a fully integrated offering. SIDC will also own 25% of the project company.
Osama Bishai, CEO of Orascom Construction, commented, “This project paves the way for a successful partnership between two leading public and private sector entities that aims to increase new industrial investments in Egypt. We are pleased to partner with Al Ahly Capital on this important project and look forward to deepening our role in the development of Egypt’s infrastructure and industrial sectors. The joint development of this industrial park follows SIDC’s growth trajectory and fits within Orascom Construction's strategy to pursue investments that provide long-term recurring income alongside associated construction opportunities.”
Hisham Okasha, Chairman of National Bank of Egypt, commented, "The industrial park development project is in line with the strategy of ACH and NBE Group to directly contribute to industrial localization.” He emphasized the importance of the project in tackling the challenge of the scarcity of properly equipped industrial lands as well as in the provision of industrial and logistical services.
Amr Batrik, CEO of SIDC, commented, “Aligning with Egypt’s vision to increase & attract new industrial investments rather than importation is essential. We believe that developing the new Industrial Park will promote new opportunities for growth and we are proud to be armed with our success in SIDC Sokhna, pointing toward increasing the portfolio of industrial development in the Orascom Construction group.”
Karim Saada, CEO of ACH commented, “The project team from the ACH and SIDC sides effectively capitalized on developments in neighboring areas and the construction of the Rod El Farag axis, leveraging its unique accessibility to launch a first of its kind industrial and logistical park in the heart of West Cairo. The project is expected to have a tremendous impact on the surrounding areas in terms of job creation, attracting local and foreign industrial investments, and generating opportunities for SMEs to flourish with tailored plug-and-play solutions.”