Invest-Gate Magazine, September 2017 issue

REAL ESTATE NEWS REPORTING & ANALYSIS

September 2017 - 48 Pages - Issue 6

WIND, WAVES, AND SUN:

BEST KITESURFING SPOTS ON THE RED SEA

EGYPT UNDERTAKES EDUCATION OVERHAUL WITH REAL ESTATE INDUSTRY PLAYERS AT THE FOREFRONT EIN HILLS, THE GEM ON THE ROCKS SOMABAY OUTSHINES ALL ACROSS THE RED SEA

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EDITOR’S LETTER

WELCOME TO INVEST-GATE Summer season has come to an end and the entire nation is gearing up for school, but Invest-Gate’s exploration across Egypt continues... This September, we visit some of the investment opportunities and projects of Egypt’s educational system. We take a look at how some market key players have joined the government’s approach to update its ailing educational system as part of the ongoing reform plan, reaching the ‘Egypt 2050’ vision.

True, property developers have the means to cater to the elite and provide better private schooling systems that they can generate revenues from; however, some have taken on developing public schools and universities to the better Egypt!

Side by side, the Ministries of Housing and Education have adopted the British and Japanese educational curricula to develop public schooling. Invest-Gate sheds light on how such systems are implemented and gives an update on what has already taken place.

Away from academia, we eye another social trend that has been booming recently, which is kitesurfing. Lately, Egypt has seen many award-winning venues opening up, diverting people back to the Red Sea to learn this fantastic watersport and also take part in international tournaments. Invest-Gate provides a mini-guide on where to go, what to do, and speaks to venue owners about the sport.

September might be the beginning of autumn around the world, but to us in Egypt, it is another festive breezy season.

This month, we celebrate the Islamic Adha Feast, and take you on a short break to El-Gouna and its first International Film Festival. We speak to El-Gouna team on hosting a number of

international festivals and tournaments; and how this caters to Egypt’s tourism sector and Orascom’s real estate ventures.

We voice a number of experts in this issue as well. We speak to El Shahawi Property Development Vice President Hosni El Shahawi about the company’s latest project in Ain Sokhna, Ein Hills. We sit with the masterminds behind the Somabay megaproject Chief Real Estate Officer Omar El Halaby and Projects Development Director Sherif Moustafa, and voice ARDIC’s CEO Ashraf Dowidar on the company’s flagship Zizinia El Mostakbal project.

We feature a special architectural and design firm, Ökoplan, and review their journey from Germany to Egypt. InvestGate also highlights some of Egypt’s young entrepreneurs, including Ahmed Ghoneim and Mohamed El-Garhy, founders of Homes360, the growing virtual property sales platform; and Dubai Smart City competition, in which our very own Business Reporter Nayrouz Talaat is selected among the finalists from Egypt.

As the Voice of Real Estate, Invest-Gate aims to cater all needs from homebuyers to big property investors. We bring you stories covering Egypt’s most interesting and vibrant sector, as it changes under the currently economic environment. With the sentiment on Egypt gradually improving, we are delighted to explore how that impacts the most favorite investment outlet.

Editor-in-Chief Farah Montasser Managing Editor Yasmin El-Beih Associate Editor Menna A. Farouk Staff Writer Julian Nabil Nayrouz Talaat Market Researcher Hagar Magdy Database Executive Taghreed Mounir Operations Manager Nada El-Labban Business Development Director Safaa Abdel Bary Web Master Ayman Rady

Happy Adha Feast!

EDITOR-IN-CHIEF

Inside this issue p.14

General Manager Yasmine El Nahas

p.18

Art Director Omar Ghazal Graphic Designer Ahmed Sabar 3D Visualizer Maged Makram Financial Manager Abdallah El Gohary

Ein Hills, The Gem On The Rocks

Somabay Outshines All Across The Red Sea

Distribution Officer Mahsoub Kenzi Mohamed El-Sayed ABDEL RAHMAN MEDHAT

IN PARTNERSHIP WITH

p.26

p.22

Publisher MOHAMED FOUAD

ARDIC’s Exciting Plans Shed Light on Economic Climate

Egypt Undertakes Education Overhaul with Real Estate Industry Players at the Forefront

All rights to editorial matters in the newspaper are reserved by Invest-Gate and no article may be reproduced or transmitted in whole or in part by any means without prior written permission from the publisher.

/invest-gate p.32

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/invest gate /invest.gate_magazine

El Gouna Festivities’ Triple Effect: Revive Cinema, Promotes Tourism, Boost Real Estate

Coworking Spaces Make Headway in Egypt’s Hotspots

Cover Photo by SOUL Kitesurfing Owner Sherif Soliman

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NEWS

UPDATE

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SOMABAY OFFERS ATTRACTIVE PAYMENT PLANS FOR A LIMITED TIME ONLY Somabay just announced its attractive payment plans on its two projects, Baywest and Wadi Jebal, at Somabay on the Red Sea, Invest-Gate reports.

Al Marasem International for Development announces the launch of the fourth phase in its recent residential project ‘Fifth Square’, New Cairo, Invest-Gate reports.

For a limited time only, interested buyers are to privilege from Somabay’s sevenyear-installment plan with 0% down payment and delivery in 1.5 years on its pristine residential projects Baywest and Wadi Jebal.

Baywest boasts two- and three-bedroom villas on areas, ranging from 122 to 158 meters a unit. Units enjoy soothing architecture and picturesque surroundings.

Wadi Jebal features Patio Villas of onefloor, three-bedroom villas on an area of

185 meters a unit. All units are of modern architectural design and offer a complete sea view from all rooms.

News Correction: Projects Real Estate Development launches Blues Tiffany and Sabbour Consulting named consultant of the-EGP 10bn- project Projects Real Estate Development has announced the launch of its latest Blues Tiffany on the Egyptian North Coast, and has contracted Sabbour Consulting for the supervision and consultancy of the project, Invest-Gate reports.

According to Bahaa, 75% of Blues Tiffany designs are dedicated to landscape, water features, lagoons, swimming pools, five-star hotels, and a number of dining

venues.

News about Blues Tiffany was inaccurately reported last month; and Invest-Gate conveys its sincere apologies to the Sabbour Consulting firm.

OUD, a joint-stock company, was established in 1994 to capitalize on the real estate boom in Egypt.

OUD launched the Heliopolis Hills project during Egypt’s Cityscape real estate exhibition, held last March. “The project spans over an area of 76,566 square meters in the 6th district in Obour City,” Ahmed Mostafa Zalouk, OUD sales manager, tells Invest-Gate. He adds that the delivery of residential units will start in 2020.

NASR: APPROVED NEW LAW TO LURE MORE INVESTMENTS Investment and International Cooperation Minister Sahar Nasr says executive regulations to the new investment law aim to attract more investments to the country by providing the suitable climate, Invest-Gate reports.

Egypt’s cabinet approved on Thursday, August 17, executive regulations to the new investment law, Nasr says in an official statement.

The new law will help the country start a new phase entitled “Egypt opens its doors to investment”.

Al Marasem International for Development Deputy of Sales Hatem Aref says, “We provide a product of a great quality at reasonable prices with flexible installment plans; we have unique products starting from fullyfurnished apartments to townhouses and villas. We are also looking forward to providing a mixed-use development in the near future.”

The law will be passed on to the State Council, where it is expected to be given a final legal review before becoming active, Nasr earlier told Reuters.

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In a one-of-a-kind celebration, ARCO Developments launched its latest project, Citystars Al- Sahil in glamor, hosting a special party on the tunes of Puerto Rican pop-star Luis Fonsi and his latest world hit Despacito, last month.

Being the talk of town for a couple of weeks, ARCO invited in Louis Fonsi and Lebanese female icon Nicole Saba to host its launch party, which was enjoyed by the elite attendees of all ages. Making the event more special, ARCO offered the first 25 homebuyers two tickets to Barcelona to attend La Liga matches.

The luxury residential project, Citystars Al- Sahel, and entertainment complex, whose brand ambassador is acclaimed football player Neymar Jr., will feature a world-class mall, four international hotels, and gigantic blue swimmable lagoons.

in 1997 as an Egyptian international company carrying out construction, engineering, procurement, development, and investment activities.

The company delivered prestigious construction projects in different fields ranging from airport construction, housing projects, hotels and tourism centers, commercial/ entertainment buildings, and infrastructure projects, taking wide steps in real estate development in many prestigious locations in Cairo.

ARCO has been one of the pioneering real estate companies in the Egyptian market since 2005, holding an impressive portfolio of projects including Dyar Park, Le Reve, Royal Meadows in Cairo, and Oriental Bay Resort in Marsa Alam. ARCO is also expanding in 6th of October City with Lavande Province, a residential compound entirely covered with soothing lavender plants. On the other side of the capital, the New Cairo area will soon be home to La Fontaine, an ideal residential complex for those seeking tranquility and peace.

Orascom Development Egypt (ODE) announces that its net sales increase by 100.1% to EGP 718.7 mn in the first half of 2017 versus EGP 359.1 mn in the same period a year earlier, InvestGate reports.

The net profit attributable for ODE shareholders during H1 of 2017

In a post published on its official Facebook page, CGP unveils a new project of business offices located in East Cairo dubbed Smart Village East.

The 1,200-acre Alburouj is an integrated community comprising a series of specialized phases.

CONSTRUCTION WORKS AT GRAND EGYPTIAN MUSEUM REACH 70% Construction works at the Grand Egyptian Museum project are 70% completed, Invest-Gate reports.

Tarek Tawfik, general director and head supervisor of the museum project, says that the progress of the project is going at steady pace, adding that ongoing meetings to choose the governmental economic bodies that can contribute to the financing of the museum are taking place.

He also notes that 4,000 artefacts of Tutankhamun’s 5,000 artefacts collection have been moved there.

ODE NET SALES INCREASE BY 100.1 % IN H1 OF 2017

According to its recent financial report, ODE says that it continues its positive operational performance across all its business segments, recording an increase of 76.9% in total revenues to reach EGP 1,093.7 mn versus EGP 618.1 mn in the first half of 2016.

CGP UNVEILS SMART VILLAGE EAST IN EAST CAIRO Cairo-based community developer Capital Group Properties (CGP) introduces a new product in its integrated community Alburouj, Invest-Gate reports.

ARCO TAKES THE NORTH COAST BY A STORM WITH CITYSTARS AL- SAHEL PARTY

OUD PUMPS EGP 500 MN IN HELIOPOLIS HILLS PROJECT Oriental for Urban Development (OUD) invests more than EGP 500 mn in its residential project Heliopolis Hills in Obour City, Invest-Gate reports.

The Fifth Square residential project spans an area of 158 feddans, offering townhouses with areas of up to 300 square meters, apartments with areas ranging between 80 to 250 square meters, and villas with areas of up to 350 square meters.

Al Marasem International for Development was established in Cairo

Located in Ras El Hekma, 204 kilometers away from Alexandria and near Marsa Matrouh, Blues Tiffany spans an area of 250 feddan, featuring townhouses, standalone villas, and chalets.

Projects Real Estate Development Chairman Hossam Bahaa says, “All units at Blues Tiffany are to view the sea.”

AL MARASEM ANNOUNCES PHASE 4 OF FIFTH SQUARE

reached EGP 117.4 mn versus a net loss of EGP 106.0 mn in the same period of 2016. Adjusted EBITDA increased by 142.4% to reach EGP 439.8 mn in H1 of 2017, compared with EGP 181.4 mn in the prior-year period, according to the report.

According to Tawfik, the total cost of the establishment of the Great Egyptian Museum amounts to USD 1 bn. Several parties are involved in financing the project, including the

Japan International Cooperation Agency (JICA), which provided a soft fund of USD 760 mn over two tranches: USD 300 mn and USD 460 mn.

The Egyptian government provides the remaining funds of USD 300 mn over three phases. The first part of USD 100 mn was completely disbursed last year, while the two remaining parts are set for the current fiscal year.

EGYPT DECREASES PERIOD TO OBTAIN INDUSTRIAL LICENCE The Egyptian government announces executive regulations for a new industrial licensing law to decrease the waiting time for new projects, Reuters reports.

The new regulations will reduce the waiting period for obtaining industrial licenses to establish new facilities from 600 days to between 7 and 30 days, Trade and Industry Minister Tarek Kabil announces.

“This law will cause a revolution in industrial investment rates in Egypt during the upcoming period, and it’s what will help put Egypt in the forefront of countries that attract industrial investment, regionally and internationally,” a ministry statement says.

EMAAR LAUNCHES ADDRESS MARASSI BEACH RESORT Emaar Hospitality Group is launching its second hotel project Address Marassi Beach Resort overlooking Sidi Abdel Rahman Bay on the North Coast, InvestGate reports.

Chief Executive Officer of Emaar Hospitality Group Olivier Harnisch says: “Address Marassi Beach Resort is one of our prestigious international developments set along the Mediterranean coastline and integrating the assorted lifestyle amenities of a central marina. The hotel is designed and developed to the highest standards of design and quality, and focuses on providing memorable holiday and leisure experiences for our guests.”

The Address Marassi Beach Resort is an idyllic waterfront location by the Mediterranean Sea, overlooking the turquoise waters of Sidi Abdel Rahman Bay, according to the company’s official website.

Featuring only 140 luxury rooms and suites the hotel is one of the 14 upcoming projects under Address Hotels + Resorts, the premium luxury hotel and serviced residences brand of Emaar Hospitality Group.

With five operational hotels in Dubai, Address Hotels + Resorts has positioned its

properties as a choice for business, leisure and group travelers.

Emaar Hospitality Group is also operating Address Marassi Golf Resort + Spa in Egypt, which will offer 49 luxurious and spacious rooms and suites overlooking a golf course.

Strongly influenced by classic Tuscan-style architectural features, the luxury resort will have restaurants, a spa, and pool. Part of the project is Address Residences Marassi Golf Resort + Spa, with only 68 Tuscanstyle serviced residences and a further 20 branded residences benefiting from onsite restaurants, health spa, fitness club and a swimming pool.

As a Mediterranean destination, Marassi is accessible from the Burj El Arab and El Alamein airports, both of which offer direct connections to major European cities.

The resort has a marina, golf course, and daycare facilities.

HILTON WORLDWIDE PLANS TO EXPAND IN EGYPT Hilton Worldwide plans to nearly double the number of its hotels in Egypt within the next seven to 10 years as tourism returns to its levels, Reuters reports.

Vice President of Operations for Egypt and North Africa Mohab Ghali expects occupancy rates to improve from last year as the devaluation of the local currency makes holidays cheaper, especially in Cairo, Alexandria, Hurghada, and Marsa Alam.

“We are currently running 17 hotels in Egypt and we are planning to increase that number to 30 hotels in between seven to 10 years,” Ghali tells Reuters.

In 2010, before the uprising that toppled autocrat Hosni Mubarak, 14 mn tourists visited Egypt, bringing in some USD 11 bn in revenues. The number of tourists has dropped since then, and stood at 9.3 mn in 2015.

“Egypt is a tourist destination … It is not missing anything,” Ghali says. “If things remain stable, within the next six months,

in the 2018 winter season, we can see pre-2011 numbers returning, with more revenues now because of the devaluation.”

The US chain, which runs thousands of hotels around the world, also plans to expand in Morocco and launch projects in Tunisia and Algeria in the next few years, according to Ghali.

“We run two hotels in Morocco and there are three others under construction. We are planning to get to 10 in the coming years,” Ghali says. “We will enter Tunisia with two or three hotels during the next five years and we will have at least one hotel in Algeria within three years.”

EVENTS: The country requires new businesses to register with its General Authority For Investment and obtain various licenses before operating, depending on the sector.

Investors have long complained of lengthy waiting times for obtaining approvals, with the World Bank ranking Egypt number 122 of 190 countries on its 2017 Doing Business index, partly due to difficulties in obtaining permits and licenses.

Sep 15, 2017 The Big 5 Construct Egypt Location: New Cairo Exhibition Centre Duration: 3 Days

Sep 25, 2017 Lighting Tech Egypt 2017 Location: Dusit Thani LakeView Cairo, New Cairo, Cairo Duration: 2 Days

Sep 18, 2017 Euromoney Egypt Conference Location: TBC, Cairo Duration: 2 Days

Sep 11, 2017 Cityscape Global Location: Dubai World Trade Centre, Dubai Duration: 3 Days

March 1, 2018 Batimat /Egypt Projects Summit 2018 Location: Cairo International Convention & Exhibition Centre (CICC) Duration: 5 Days THE VOICE OF REAL ESTATE | 9

MARKET

STATS

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REAL ESTATE TACTICS & TECHNIQUES

REAL ESTATE TACTICS & TECHNIQUES Competitive Intelligence Process

Competitive Intelligence in the Egyptian Real Estate Sector Introduction

Classification according to Information Type

The Egyptian Real Estate market is witnessing intense competition between the investment companies related to huge tenders and contracts for the implementation of a wide range of projects. In a highly competitive market with shifting trends and economic obstacles, Real Estate developers need to have a clear and detailed picture on competitive developments in the market. Moreover, the gap between what companies are spending and what they are getting, rises from the combination of not understanding what is possible and not seeing the potential opportunities

80%

1 – Data Collection

Cold (easy info)

Collecting external and internal information

Fluctuating Economic Conditions

Aggressive Marketing Campaigns

2- Analysis

Information is analyzed to generate knowledge that communicate intelligence

Competition

Increase in Construction Costs

Unique Project Locations

Diversity in Finishing Types & Commitment in Delivery

Track Competitors Activity

Tracking the activity of their direct and indirect competitors in a range of fields

… a severe need for differentiation and gaining unique competitive advantages was created, …

Acquire Updated Data

Acquiring updated data about the market to ensure sound performance and sustainable

Developing strategies to be differentiated from competitors

Prepare

Competitive Intelligence … calling for the utilization of competitive intelligence.

Data Collect Internal & External Information

Information

Business Development

Strategy & Tactics

Market Penetration

Patent Registration

Research Activity

Spot Market Opportunities

Understand Market Trends

Setting Overall Strategy

Taking Well Informed Decisions

Exploit their Weakness

Blow-up Threats Against Them

Analyze

Select & Communicate

Knowledge

Intelligence

Undermine their Strength

3- Decision

Competitive intelligence is applied on decisions

4- Results

    

Information is prepared after the data collection phase in order to be analyzed

Knowledge

After analyzing the gathered information, important and reliable knowledge is generated to be utilized

Intelligence

The utilized knowledge results in gaining competitive intelligence which helps developers to make differentiated outcome

Corporate or Business Strategy Sales or Business Development Market Entry Decisions Product Development Research & Development (R&D) / Technology Decisions

 Mergers & Acquisitions (M&A) Decisions  Due Diligence  Joint Venture Decisions  Regulatory/Legal Responses

New or Increased Revenue

New Product or Services

Cost Savings/Avoidance

Time Savings

Profit Increases

Financial Goals Met

Competitive intelligence is the bridge between information & action

Undercut their Opportunities

Apply

Decision

Act & Monitor

Results

As a result for the low demand due to economic obstacles the real estate market faces recently, and high competition; developers should differentiate their products, sales strategies and marketing campaigns through applying state of art real estate tactics and techniques. Here, CBC Advantage guarantees agile solutions with innovative outcome for each project supplying a 360-degree view of the most important business metrics and KPIs in one place and in real time

For more details, please contact | Sherif Hassan, Development Manager Email | sherif.hassan@cb-egypt.com

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Market Snooping

Competitive Intelligence Support Crucial Decisions

General Business Activity

Predict their Next Actions

Develop Action Plans

Black Information

Information

Improved Designs & Facilities

Affordable Prices & Payment Terms

Secret

Grey Information

Competitive Intelligence

Gap between Supply & Demand

Forced Reaction

Hot (difficult to get)

White Information

Competitive Intelligence Evolution

Given the fierce competition between developers in the real estate sector, …

20%

Tel | +2010 940 11466

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that are being discovered and maintained today are to sustain life for the entire population for many decades to come.

On a negative note, we as Egyptians lack creativity.

We see real estate booming, then all directions by the government and people are only directed to real estate. We see SMGs create a growing trend in the food sector, and then all companies invest in cafes and restaurants. Back in 2016, the small district of Zamalek in Cairo witnessed the launch of 33 openings of cafes and restaurants in just six months. Misr El Gedida saw around 156 coffeeshop launches. We lack intuition. We never bring something new that the country lacks to the table…We only check what is made successful and we follow its lead.

On a positive note, only now do I observe that the people’s mentality is starting to develop and there is investment awareness. The government itself is starting to think out of the box by developing a new urban plan to build new cities, services catering to such new communities, and infrastructure, for instance. I predict that we will see somewhat a new Egypt in the upcoming 10 years.

EIN HILLS,

However, I would like to see proper urban development and long-term planning. I want to see Egypt’s vision in 50 years from now. They are developing Egypt’s eastern desert, yet not much has been done on our massive western desert.

THE GEM ON THE ROCKS

What are the challenges that affect the real estate sector today? And how to overcome them?

Challenges in the real estate market are massive because the sector in Egypt has no proper urban planning. Most developers focus on the product, market it, and sell it without considering its surroundings. I mean facilities, services, and means of life to build a self-sustained community.

BY FARAH MONTASSER

E

mbracing nature, El Shahawi Properties breaks through with its latest gem, Ein Hills on El Galala Mountain in Ain Sokhna. The beauty of Ein Hills is indescribable, be it for its unique location, the mountain lifestyle it presents, and the exclusivity every homeowner enjoys. Bringing “Monaco to Ain Sokhna”, as the developer calls it, Invest-Gates sits with Ein Hills CEO and Vice President Hosni El Shahawi to shed light on his boutique Ein Hills resort and to discuss the investment climate, the real estate sector, and urban planning in Egypt today.

How do you view the investment climate generally? And the real estate market specifically?

The investment climate in Egypt has been changing throughout the past seven years. Due to the 2011 uprising, we have seen investments lagging in Egypt due to political instability as well as distrust in the system, and security.

We see the same sectors dominating investments, but with different players. For example, Abu Hashima is now replacing the Ezz steel empire.

The update we see in the past two to three years specifically shows that the government itself is taking part in reinvigorating the investment market, especially in the real estate sector.

The problem is still with the Egyptian mentality.

We are still focusing on one sector, which is real estate, leaving behind all others. We need time to understand the other industries like manufacturing, trade, and agriculture in order to expand.

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environment for a proper, safer investment climate to invite foreign and local investors alike.

adoption of new advanced agricultural methods to bring life to such areas.

An investment not only depends on governmental policies, but more importantly, it relies on the strong ties between the producer and end-user, alongside all the chains in between.

It is worth noting that part of the government’s plan is to bring water resources like lakes to the desert for agriculture. Such a plan is to counterattack claims of losing our Nile as a resource following the construction of Grand Renaissance Dam in Ethiopia. The natural waters of the desert

I, personally believe that the government today is taking drastic measures for a better investment climate following 60 years of neglect and lack of development to cater to our growing population.

Throughout the past 60 years, Egypt has never undergone a proper long-term developmental plan that meets its growing demography.

As for real estate…

Where real estate is concerned, we have only developed 7% of land plots along the Nile, east on the Red Sea, or north on the Mediterranean Sea. Naturally, Egyptians build communities around water resources, leaving the massive land of the western desert empty. Now, the Armed Forces are creating a number of industries, including the

However, there is a growing trend in Egypt, today, to build a community rather than construct a compound.

Another challenge is that the sector relies on the Egyptian workforce. We see local developers succeeding and if the developer is a foreign company, it is still run by an Egyptian management.

This is given the bureaucracy of our system; it is only the Egyptians who can deal with it. This applies to all chains within the entire industry from buying land, materials, to the relationship between contractors and clients.

To overcome such challenges, there are two roles of equal importance. One is the government’s role, which has worked on improving its systems by issuing the New Investment Law, for example.

The law has 94 articles covering almost all types of investments. What remains to be seen is its implementation and its terms of rules and regulations.

The other part relies on the developers themselves.

Again, we need urban planning and not just developing a project. I take Hisham Talaat Mostafa as a successful developer with his Madinaty vision.

He created a complete city on the outskirts of Cairo. Now, the government is following his lead and is forcefully entering our market, creating a much greater competition. The key to win this competition is through the development notion and not the project.

Commenting on what you said, the government now is to compete in the real estate industry…

How do you see such competition when the government works on B and C classes, whereas real estate developers work on the A class only?

The government had focused on the B and C classes in the past 20 years. Before then and especially now, it targets A class. This is evident in the newly-adopted projects like the New Administrative Capital, New El-Alamein City, and the New East Port Said City, to name a few. Maybe, they will not reach the top-notch A class, but still they are key players in our market today.

On the contrary, not all private developers target A class. There are some who cater only to B and C classes like the Porto projects by Amer Group and also some of Talaat Mostafa Group’s projects.

By saying that, to be a real estate developer, you have to work on all clusters so you build a community. We, as El Shahawi Properties, are to target the B and C classes in the future, too. The A class will be saturated on the long-term, I believe.

Does El-Shahawi seek to take part in the New Administrative Capital project in the near future?

We as a developer, especially the chairman (my father), are very selective when it comes to development. He was the first to take on a project in Ain Sokhna, Ein Resort, back in 1992 when Ain Sokhna was primitive and neglected. At the time, Ain Sokhna was just a point on the Cairo- Hurghada Road or Suez – Hurghada Road. Today, Ain Sokhna has some life, yet it has not reached its full potential as a city on its own.

I predict that we will see somewhat a new Egypt in the upcoming 10 years.

We always seek to invade new areas to serve a purpose or to serve our development vision. The New Administrative Capital does not serve our vision or our positioning today.

Where Ain Sokhna is concerned, how do you view it given the massive urban planning it sees today?

Ain Sokhna is one of the most interesting destinations in all of Egypt, in my opinion.

Ain Sokhna has the privileges of any Red Sea destination. It is on the edge of Suez, so it has trading potential. There is its sea life like the rest of the Red Sea destinations, and nice beaches as well.

Given its closeness to Cairo, merely 120 kilometers away, Ain Sokhna is to be considered the capital’s beachfront. It is the best retreat for year-round short breaks unlike its competitor the North Coast, which

The key to win this competition is through the development notion and not the project THE VOICE OF REAL ESTATE | 15

VOICE OF THE EXPERT is considered a long-term vacation destination.

Ain Sokhna enjoys the “mountain life”, something that is new to the Egyptian public and needs to be embraced. It is a very promising destination.

Now, we see the government, because of the destination’s proximity to Cairo, Suez, and the governorate of the Red Sea, is eyeing Ain Sokhna.

They have changed its infrastructure and created El-Galala City, aiming to turn Ain Sokhna into a fully-integrated community that is an extension to the previously mentioned governorates. All projects surrounding El-Galala are to enjoy all facilities and services provided by the city. Up until last year, Ain Sokhna had no transportation facilities. The only means to reach Ain Sokhna was one’s own vehicle.

Five years from now, Ain Sokhna will be catering to first-home buyers. The housing plan, according to our demographic nature, is indirectly reaching Ain Sokhna. The current developments by the government and the private sector, alike, with New Cairo, the New Administrative Capital, and ElShorouk, to name a few, has reached 35 kilometers away from Ain Sokhna. So, naturally, Ain Sokhna will soon attract first-home buyers.

I anticipate that all new cities in the works are to fulfill Egypt’s urban development vision and hence, Ain Sokhna would be Greater Cairo’s seashore.

Moving on to Ein Hills, the latest of El Shahawi Properties, to be added to Ain Sokhna. What is so special about it?

With Ein Hills, we embrace the “mountain life”. We need to emphasize our nature and mountains are of equal importance to the Red Sea. In fact, they dominate our eastern desert. When we thought of Ein Hills, we wanted to add a value to Ain Sokhna, and were eager to present something special and different to stand out.

We had to study the geology of the mountain.

Developing the concept took three years until we started construction. With each step in planning, we faced an obstacle, which we transformed to our benefit and gave Ein Hills a further edge.

We introduce a new lifestyle in a luxurious way. By lifestyle I mean, the positioning of units from sea level up to the top of the mountain. I mean your

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daily life on a mountain, including public spaces and landscape, driving on roads, transportation means, hiking, and all other amenities and services.

It is the details that matter to deliver such a lifestyle.

Ein Hills is a mountain lifestyle compound with a sea view.

You describe Ein Hills as the Monaco of the Red Sea. How is that implemented?

It is the luxury provided in the project. If we examine the Southern European shores, Monaco is the only country that is luxuriously built on cliffs and mountains above sea level.

Ein Hills is the same… We present a boutique resort compound, comprising of only 500 units on six platforms. Every platform with its roads enjoys the sea view. It features very neat, top-notch services, including housekeeping and room services for every unit. We bring hospitality services to your home. We had to cater to all needs way before marketing the project. We needed to give a complete life, solving any daily obstacle that may appear.

One of the most important characteristics of the project is the privacy each unit enjoys despite being leveled on a mountain.

Some of the blocks have ground, first-floor, and second-floor units. To serve the private lifestyle we present, the second floor unit became the ground floor. You access the house from the top and take a few steps down to your reception. Such leveling provides privacy to your house and the road in front. You are not seen by any on your backyard and if you are walking down the street, too. This idea again added another identity to the project, which is the walking experience. From your road and as you go up to the tip of the mountain or downwards to the sea level, you get to enjoy the sunset and the sea as well. Your view is never distracted by another unit at all. It is an open, scenic point all through Ein Hills, from the first to the last platforms.

Moreover, as the idea of a walking experience progressed, we had to think about means of transportation catering to the open seaview concept. So, we added a poly train, another addition to the mountain life experience. As a

Ain Sokhna enjoys the “mountain life”, something that is new to the Egyptian public and needs to be embraced. It is a very promising destination. safety precaution, we hired Puma, owner of Ottis, to develop this transportation.

The open spaces enjoy massive greenery, waterfalls, and bonfire areas for all to enjoy. It is somewhat an extension to the terraces provided in each unit.

Units that exceed two to three bedrooms have private infinity pools to add to its sea view.

What are the updates on Ein Hills?

We can now say that the foundation is completed and the construction of compound itself has started. We are to deliver the first phase in March 2019 and the entire project in December 2020.

However, updates on the development as a plan is still ongoing, but we are about to finish it.

What do you have in the pipeline?

We are now developing a new project in Dabaa on the North Coast. This, too, is to deliver something different to the very challenging and competitive market of the North Coast. We have acquired a land plot on a cliff and are still working on the concept of embracing its surrounding nature. The launch of this project will be in the second quarter of 2018.

In our plan, we will embark on three different projects within the upcoming three years. Five years from now, El Shahawi Properties will adopt urban planning in all of its upcoming projects.

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increased. Most developers offer zero downpayment plans. The government is heavily entering the real estate market and has become a key player with all its housing and developmental projects across Egypt with the New Administrative Capital, and the New El-Alamein City, to name a few. Either they sell directly to clients or they partner with other developers.

SOMABAY Outshines

OH: Banks indeed have created a challenge for us.

However, this adopted strategy is not sustainable and will soon come to an end. We have seen markets like Turkey, for instance, go through the same period in the past. Turkish banks used to give very high interest rates, too. Such Approach is

All Across The Red Sea

By Farah Montasser

“A

self-contained paradise,” according to the developer’s website, Somabay preserves its pristine nature by adding luxury to its mix. Despite the many changes that hit Egypt since the 2011 Uprising up until today’s drastic economic reform plan, Somabay remains one of the most sought-after touristic destinations to foreigners. In 2014, Somabay’s residential project sold about 40% of its units to European buyers. Invest-Gate joins Somabay’s masterminds Chief Real Estate Officer Omar El Halaby and Projects Development Director Sherif Moustafa for an open discussion about the Red Sea hospitality and real estate markets and how Somabay stood out among the rest, creating an outstanding exclusive boutique destination in spite of the many obstacles.

How do you view the investment climate in Egypt and specifically in real estate?

OH: Despite all what is happening and the drastic economic measures undertaken by the government, I see it very positive. The real estate market is in a temporary slowdown mode, of course, given the harsh reforms and the attractive saving deposits and certificates with 20% interest rates offered by most banks in Egypt, today. People are more likely to buy such certificates than invest in real estate. But soon I am hopeful that the appetite for real estate investment will surge again.

I also see that lands, today, are under valued because of their purchase prior to the float. Given their true

value today, acquiring land and developing projects will naturally increase prices of the end-product.

I expect property prices to dramatically increase.

Having said that, I believe now is still the right time to buy property because of the further price hikes that are to come.

SM: The reform was a mandatory step and of course it has its pros and cons. Locally, this reform is still not 100% developed, yet. Of course, it has a direct effect on the cost of materials, construction, and land. Internationally, such economic measures and- I mean the devaluation of course- has increased the appetite for international investment in Egypt.

Now, land purchase is made affordable to foreign

investors. Egypt is to see a number of foreign investors entering the market this year and the coming one as well.

We saw some inflation among construction materials like in the steel market, for example. Some suppliers were very much affected by the price increase of materials, while others took it as a chance to increase their prices. I personally do not think that this inflation was real.

Also, the funding and loans of a project have increased as well, creating a higher challenge. Now for a loan, the bank can get around 25% interest as opposed to the personal saving certificates, where you get to enjoy 20% interest rate on your savings.

Banks are now eager to profit and make money from all sources and all means. However, this strategy will soon come to end. We will reach a point when a true investment climate comes into play.

Somabay enjoys another feature, which is the elevation of the land, making most of its neighborhoods enjoy a breathtaking sea view. needed at this stage of Egypt’s reform plan now, but sooner or later, they will go back to normal.

As developers, how can you overcome those many challenges?

OH: Well, this is where the attractive payment terms with zero-down-payment and facilities come in.

The advantage of bank saving methods is that they give back the interests to your deposits. I think now developers try to attract clients to put such interests as installments in their projects. This is the game now and that is why you have zero down-payment plans.

The Red Sea has been suffering from political instability, safety, and economic reform in recent years, how do you view its market?

SM: The Red Sea as a touristic destination will be the new Ain Sokhna. Let us take Egypt’s North Coast as an example. The plan now is to develop the North Coast as a destination through hospitality.

Hospitality goes in line with the property market.

It supports it and gives any destination life. Most upcoming developments are to include a hotel or more to their premises. The government is also working on developing many integrated communities as well.

Moving to the Red Sea, such integrated communities model or urban development is also taking place, with the new cities that are being developed and the infrastructure projects, Koraymat Road for instance, we can foresee touristic destinations on the Red Sea becoming closer and closer to the capital, creating such integrated communities. The privilege of the Red Sea unlike Ain Sokhna and the North Coast that it is already dominated by the hospitality sector and for real estate to join is just another added value. Hospitality complements real estate.

OH: The Rea Sea as a destination enjoys beautiful weather over ten months a year, making it inhabitable. I also see that the undergoing infrastructure and urban planning makes the Red Sea, as a destination, very promising for the real estate industry. To analyze the past seven years, given the uprising, political instability, and security

Our wellness spa won the World Luxury Award in 2016

issues we suffered from, destinations like El-Gouna, for example, and Somabay shifted their business from international markets, which they previously dominated, to the local one. Even Somabay, back in 2014 and 2015, was -if I can put it- “Egypt’s best kept secret”. Only a few knew about Somabay. During this period up until recently, our strategy was to focus on the local market. But today, international tourism on the Red Sea is starting to pick up again. I see it coming back as before if not better.

Somabay kicked off with a few number of hotels in the past. Now it has become a more developed destination with a number of hotels and five residential projects. Was that the initial plan? Or was real estate recently added to the mix?

SM: From 1991 until 2009, we developed five hotels, Sheraton Hotel, the Robinson Club, Kempinski, The Westin, and Breakers, the diving and surfing lodge with a total capacity of 1,338 hotel keys.

Then there was the uprising…

OH: Previously the focus was mainly on hospitality, but with the new management, taking over in 2014, we integrated real estate development. Real estate was there before but never a main business driver. But with the new management, real estate has become a crucial part of our strategy along with hospitality.

Adding real estate to the mix, in a short period of time, two of those real estate projects are currently sold out…

OH: Yes we have Marina Residence and Golf Townhouses already sold out and delivered. We are now marketing Baywest, Soma Breeze, Abu Soma Reef and Wadi Jebal and by the end of this month, we are launching our latest project, Surf Village.

Are all projects marketed locally?

OH: Actually we market our residential projects locally and abroad, mainly in Europe. This year, 30% of our sales were to foreign clients, including Germans, Swiss, Italians, Canadians, and Americans.

We have a nice multi-national portfolio of homeowners. Foreigner residents occupy 40% of the total residential projects at Somabay.

Commenting on what you said, banks are one way or another competing on the “safest type of investment”… does it affect the real estate market “the investment’s safe haven” as it is referred to?

SM: True, the consumer used to invest in real estate instead of banks for the markets stability. Now, the competition within our sector has tremendously

We are looking to become more of a boutique destination with very exclusive and upbeat services to niche markets.

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Are you marketing all residential projects all at once? How is that so?

EGYPT`S FIRST REAL ESTATE STRATEGIC ROUNDTABLE DISCUSSION

OH: We created neighborhoods across Somabay.

Each is different from the other and caters to different needs and lifestyles. Baywest, for example, is on the bay side of Somabay peninsula. It comprises two and three bedroom villas on a small piece of land with five-to-seven-year installment plans Abu Soma Reef is located on the northeast coastline of Somabay and offers various architectural designs; from villas, to terrace villas and terrace chalets.

We are launching this new project, Surf Village, on the bayside

SM: Wadi Jebal is on the other side of the peninsula on the reef side of Somabay. It is a more exclusive neighborhood, featuring larger more expensive villas, patios, and lodges. The lodge is a very unique product in terms of design and architecture and is new to Egypt. We also have apartments in Soma Breeze on the tip of the peninsula, overlooking the sea. It features from one-to four-bedroom apartments.

What is your aim behind the giant Somabay? Is it to become a city?

OH: We are looking to become more of a boutique destination with very exclusive and upbeat services to niche markets. We are to provide a specialty medical center, kennels and high-end clubs, to name a few.

SM: The privilege of Somabay unlike many

destinations on the Red Sea is that it spreads on a 10mn- square -meters- peninsula surrounded by 11- kilometer- waterfront unlike some other projects that occupy 36mn square meters of land with the same waterfront length, making it very dense to the clients. Somabay enjoys another feature, which is the elevation of the land, making most of its neighborhoods enjoy a breathtaking sea view.

Now that Somabay is a boutique destination, how does it cater to the daily needs of its residents and visitors and not making them reach to the other surrounding cities?

SM: We have that in the plan of course to include a number of amenities and retail to develop an integrated community at Somabay. We started enhancing this mixed-use facilities side of the project. We have acquired- 24/7- medical services, along with a number of basic life amenities to cater to the daily needs. We now have various options of entertaining venues, including a variety of restaurants by the Marina. We are currently enhancing the livelihood facilities of the project.

OH: We acquired the basics at Somabay and we are currently working on developing other things.

We just opened a new water park; Soma Splash, operated by Sheraton and caters for kids, families, residents and visitors as well. We also have a huge

wellness spa of international standards, with facilities spanning over an area of 7500 square meters, with 65 treatment rooms, offering everything from traditional massages and beauty treatments to the latest technology for aesthetic treatments and hydrotherapy. Our wellness spa won the World Luxury Award in 2016.

What do you have in the pipeline?

OH: We are launching this new project, Surf Village, on the bayside. It is an exclusive development located right by the beach and offers villas, twin villas and lofts with almost all units offering a spectacular sea view.

SM: We also host our annual international golf tournament. The upcoming golf tournament is to take place in October; in addition to our annual international kitesurfing tournament that takes place at our 7BFT Kite House.

Is Somabay to explore other destinations in Egypt?

OH: At the moment, we are focused on the development of Somabay but are keeping an eye on the market of course and the other potential destinations across Egypt to seek.

EGYPT REAL ESTATE CHALLENGES AND OPPORTUNITIES STRATEGIC ROUNDTABLE

7 DECEMBER 2017 THE NILE RITZ-CARLTON

DISCUSSION TOPICS INCLUDE: Residential Economic Issues & Trends Commercial Economic Issues & Trends Federal Legislative & Regulatory Issues Real Property Valuation Infrastructure Challenges & Opportunities Attracting Foreign/International Real Estate Investments Hospitality/Real Estate Investment in Modern Egypt

For more information contact marketing@invest-gate.me

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vision. We are trying to copy with all these changes to make ends meet.

What are the new projects you have offered this year?

Egyptian property developer ARDIC for Real Estate Development and Investment has uncovered a new phase of Zizinia El Mostakbal,The Curve phase.

Located in Mostakbal City New Cairo, The Curve enjoys proximity to various hotspots. The company offers its clients a payment plan over seven years with a 5% down-payment or ten years with a 10% down-payment.

Construction works on the project started last November. The project includes residential units with areas ranging between 160 and 570 meters.

Zizinia El Mostakbal units are to be fully constructed and submitted by 2020, noting that 45% of the project’s units have been sold out.

How do you see the impact of the new investment law on the local economy as a whole?

projects to a great extent in terms of land acquisition with ready infrastructure and facilities.

What is the company’s future plan?

It is a positive step, but we still need to measure the real impact after we see the executive draft of the law, translated into tangible results. Legislation alone cannot make the change, unless it is really implemented.

ARDIC plans to purchase a land plot from the government for a mixed-use project in Upper Egypt.

Such a plot is health, residential, and commercial facilities.

Do you see social housing projects as a competitor to ARDIC?

The company is going in tandem with the government vision of decentralization and expansion to Upper Egyptian governorates.

Of course not. Firstly, we are targeting an entirely different segment. Moreover, the social housing projects are committed to certain apartment areas. secondly, demand remains high versus what is offered in the market.

The company’s plan relies on investing in the fields of industry, real estate, tourism, services, housing, and reconstruction.

We do think that entering into a partnership with the public sector will be an added-value or will facilitate our

What are the expected sales of your currently new residential project Zizinia El Mostakbal?

We expect sales of EGP 4.5 bn from the Zizinia El Mostakbal residential project. The total investment we have pumped so far is EGP 450-500 mn in Zizinia El Mostakbal residential project. The project is located in Mostakbal City on the main axis of the Road 90 extension near Madinaty and 12 kilometers away from the American University in Cairo (AUC). It is easily accessible through the Suez Cairo Road.

How do you think exhibitions will help boost the market, and is it a good indicator?

ARDIC’s Exciting Plans Shed Light on Economic Climate

I cannot estimate accurate figures of investments driven from exhibitions, but as you know the marketing tools are varied. Currently, developers are depending on digital marketing, billboards, and exhibitions. But in my viewpoint, clients from exhibitions are the real customers and buyers.

ARDIC plans to purchase a land plot from the government for a mixed-use project in Upper Egypt

The Curve enjoys proximity to various hotspots. The company offers its clients a payment plan over seven years with a 5% down-payment or ten years with a 10% down-payment.

By Nayrouz Talaat

D

uring an in-depth interview with Invest-Gate, Ashraf Dowidar, the CEO of ARDIC for Real Estate and Development and Investment shares his view on the market’s ups and downs, and how he has succeeded in challenging Egypt’s current monetary policy.

In your viewpoint, how can the market deal with the new monetary policies?

The market has been weathering changes in monetary policies since the last devaluation of the Egyptian pound against the USD. We have seen a rise in the prices of residential units by 35-40%,

following the decision taken last November.

Some real estate developers consistently altered their future strategy on the developmental and pricing policies since upping construction costs keep occurring. Construction costs have increased by 100% since the flotation.

The case with ARDIC is that instead of injecting investment in three projects, we inject in two projects only to cope with the delivery dates. We are adopting a financial policy of depending on our portfolio instead of relying on bank loans, which at the end are limited to certain funding amounts.

In your opinion, how have the current challenges in the market affected marketing and sales plans?

The fluctuations in purchasing power and [the recent] shift is significantly affecting the categories of the prospects and clients, as well as their future

The case with ARDIC is that instead of injecting investment in three projects, we inject in two projects only to cope with the delivery dates.

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Tapping the captivating beauty and serenity of Sinai and its tasteful architecture, La Hacienda has launched a new phase of apartments and studios on the vibrant and serene shores of Ras Sudr displaying picturesque designs and offering an ever present calming atmosphere.

Overlooking a majestic water lagoon, La Hacienda’s New Phase offers clients an exquisite experience that takes them away from the hustle and bustle of the capital and helps them get lost in the beauty of the Red Sea’s hidden gem.

The phase spans an area of 37,000 square meters and encompasses parking lots, a tennis court, a +5,500-square-meter swimmable lagoon, seven swimming pools, 1,200 meters of sandy beach front and units viewing the sea. And surprisingly given all such amenities, you do not have to be super rich to acquire your home at La Hacienda Ras Sudr’s New Phase.

La Hacienda offers a choice between outstanding studios or studio apartments for carefree living or one- to two-bedroom apartments at incomparable prices and payment plans that are affordable for nomads and young couples.

Prices of studios range between EGP 380,000 and EGP 450,000 while studio apartments cost between EGP 550,000 and EGP 650,000. Prices of one-bedroom apartments, meanwhile, vary between 750,000 and 900,000 and twobedroom apartments cost between 1,050,000 and 1,300,000. La Hacienda also offers payment plans of up to six years with a down-payment of 7%. Until now, one island has been sold while the second one is now open to home seekers.

Mingling between the glamour of the surrounding nature, swimmable lagoons and beautifully flowing waterways, La Hacienda’s New Phase boasts a charming atmosphere that provides homeowners with peace in a harmonious community.

Only 210 kilometers away from Cairo, the New Phase also showcases the vibrant and authentic architecture and designs that La Hacienda Ras Sudr has been famous for since its launching.

Allowing for individual tastes, the eclectic range of architectural styles in the New Phase embraces a choice of Mexican, Country or contemporary.

Each twist in a path reveals a new mood, a different energy, yet all blend to create a unique and authentic residential community.

The units, located between walkways made of natural stones and a panoramic lagoon, enjoy exceptional views that ensure that interaction with the natural beauty is never far away. The New Phase’s units are also situated near all the resort’s facilities, are 150 meters away from the main gate and 650 meters away from the sea. In the New Phase, homeowners also enjoy a variety of views, whether they are lagoons, the sea or the gardens.

GET LOST IN THE BEAUTY OF RAS SUDR WITH

LA HACIENDA’S NEWEST PHASE

La Hacienda’s New Phase is also close to the resort’s first and top-ranked surfing school in the area: Soul Kitesurfing Center. The renowned trainers behind the number one center in Egypt have a large community of loyal fans, who are divided between surfing fanatics and yoga lovers. Being situated on the shore of a bay facing northwest gives La Hacienda the advantage of facing the sea breeze instead of the dusty wind that comes from the surrounding desert, making it the ideal destination for kite surfing enthusiasts from all over the world.

So, whether you want a trip full of activities or a relaxing getaway, La Hacienda is the perfect place for you.

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Egypt’s New Knowledge City In close proximity to the New Administrative Capital, Egypt is currently developing 3,000 feddans to establish the New Knowledge City, which will “rely heavily on information technology in all its sectors, whether means of transportation or the design of the buildings,” an official at the Information Technology Industry Development Agency (ITIDA), which is contributing to the project, tells Invest-Gate.

The official, who spoke on condition of anonymity, as he is not authorized to speak to the press, adds that the city will depend on renewable energy sources like solar energy, as well as water treatment to irrigate its green spaces. New institutes and centers for technology training will be established in the New Knowledge City. “The government will try to attract international research companies and institutes specialized in the fields of engineering, sciences, and technology to have their headquarters in the new city,” he states.

Meanwhile in the Private Sector…

EGYPT UNDERTAKES EDUCATION OVERHAUL WITH REAL ESTATE INDUSTRY PLAYERS AT THE FOREFRONT

BY JULIAN NABIL AND MENNA A. FAROUK

A

s autumn approaches with back-to-school season, Invest-Gate eyes real estate market players, from both public and private sectors, channeling their investments and resources to cater to the educational system as part of Egypt’s educational reform plan. Invest-Gate tours the recently established schools and universities across Egypt as well as the many to-be developed and explores how such projects are positively affecting not only the educational system, but also the real estate sector.

“The new schools and academic facilities provide high-quality education for Egyptians, while simultaneously generating revenues for the Egyptian government,” Minister of Housing Mostafa Madbouly said in a recent statement on the development of new schools with improved curriculums. The government’s drive to construct more high-quality schools and universities also aims to accommodate 26 | INVEST.GATE | September 2017 - ISSUE 06

RESEARCH BY HAGAR MAGDY

the growing school-age population in the country.

The school-age population is rapidly growing in Egypt, with projections of reaching 26 million by 2020.

Public Schools to “Educate the Whole Child” With the reform plan set in motion, Housing Minister Madbouly announced the launch of ‘Tokkatsu’ educational system adopted from the Japanese model of “educating the whole child”. The new system will not simply focus on growing a child’s intellects, but will also seek to develop all other aspects of the child as his values, attitudes, and social skills.

According to Madbouly, the government will establish 55 new public schools in FY 2018-19 that follow the Tokkatsu model across many governorates, including Cairo, Sharqiya, Qalyubiyah, New Damietta,

and Luxor, aiming at updating the country’s ailing education system within the next four years.

These new schools will be built in Upper Egypt’s Luxor districts of El-Tod, El-Awabed, El-Karnak, and El-Qarna, spanning over an area of 16,000 square meters; and will include a large complex hosting several schools for all educational stages.

“The Tokkatsu model will also be applied across our public schools all over Egypt accordingly,” New Urban Community Authority (NUCA) Spokesperson Mona Kamel tells Invest-Gate. Forty-five public schools have already adopted Tokkatsu model across Cairo, Giza, Aswan, Assiut, Alexandria, Ismailia, Red Sea, Beheira, Daqahliyah, Suez, Sharqiya, Gharbiya, Qalyubiyah, Minya, Beni Suef, South Sinai, and Marsa Matrouh.

Tuition fees range between EGP 2,000 and EGP 4,000 per annum.

Public ‘Nile Schools’ Go British Aside from the newly established Tokkatsu-modeled public schools, the Egyptian government will offer another advanced educational system through its ‘Nile Schools’ project, based on the British educational system. Students are to receive accredited high school degrees from the University of Cambridge.

Teachers, too, are trained in cooperation with the University of Cambridge.

The Nile Schools model has been adopted in some schools across Egypt as of 2016 and will expand in new cities as well, Minister Madbouly confirms.

Three new Nile Schools will be established in 6h of October City, two schools in New Cairo, two schools in Sheikh Zayed, one school in Obour, and another one in El-Shorouk. New Nile Schools will also be built in each of the following areas: New Minya, Sadat City, New Damietta, New Assiut, New Aswan, and New Thebes.

Funded by the New Urban Communities Authority (NUCA), Nile Schools are considered social and investment projects costing EGP75 mn. The schools offer high-quality education at reasonable prices while generating reasonable revenues.

Each school is equipped with 42 classrooms, playgrounds, and swimming pools. The tuition fees range between EGP 12,825 annually for the kindergarten stage and EGP 15,765 annually for the high school stage.

With the rising demand for private education in Egypt, many developers are focusing their investments on education projects, “boosting both the education and real estate sectors,” some experts conclude.

It is believed that private education offers a wide range of investment opportunities for real estate industry players seeking to diversify their portfolios and increase their exposure to alternative sectors. The rise in educational institutions, such as private schools, comes in line with the government’s plan to raise educational standards, provide comfort to real estate stakeholders and, above all, increase financial returns.

Sabbour’s Educational Projects Sabbour Consulting Company is among the main players in this field, providing consultancy services for a number of projects such as the first and second phases of the National Bank of Egypt-funded project concerned with developing, renovating, and upgrading government schools in the working class district of El-Sabteya, according to Maha El-Salhy, Head of Business Development at Sabbour Consulting.

The project aims to improve the quality of public schools. “We, as a consultancy firm, have another project with the Federation of Egyptian Banks to develop existing schools in Helwan. Most of these THE VOICE OF REAL ESTATE | 27

VOICE OF THE MARKET schools suffer serious problems, so the federation decided to buy a five-feddan, on which a complex of schools will be built in cooperation with Helwan’s Egyptian Directorate, with the whole project funded by the federation,” El-Salhy adds.

Sabbour is also scheduled to upgrade a number of schools and build new ones with an international system across different villages in Upper Egypt’s Assiut, aiming at improving the quality of education and providing a better environment for students. “We face a lot of challenges in this project as some schools are rickety, in addition to their poor infrastructure,” El-Salhy notes.

“We won a consultancy tender for the Arab Open University in Egypt, and then were awarded another deal for its other branch in Bahrain. The company also finalized the designing phase of High Nile Institute and Heliopolis University, but they are not yet implemented,” El-Salhy says.

“There is a dire need for schools in Egypt and the government is currently focusing on developing public schools and universities,” Founder Hussein Sabbour says, adding that the New Administrative Capital will encompass a number of universities, and that the company is competing to win a deal to design one of these universities.

Tatweer Misr’s Entrepreneurship University In the belief that education is one the best investments that can be made today to address some of tomorrow’s biggest challenges, Tatweer Misr made it one of the main pillars of its community investment.

“The company is currently negotiating partnerships with a number of international universities to establish a unique university that focuses on graduating the next generation of entrepreneurs,” Tatweer Misr Board Member and Managing Director Ahmed Shalaby says.

It will be the first university in Egypt to provide top-notch education focused

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on innovation, entrepreneurship, and small –to- medium enterprise (SME) development to help create a nation of entrepreneurs, who will form the backbone of SMEs in the future.

“Developers need to put into consideration the economic and social needs of the neighborhoods they develop, thus incorporating design elements that contribute to environmental health as well as architectural aesthetics. With this in mind, we are aiming to create what is known as a college town, which combines living and retail spaces,” Shalaby adds.

Shalaby reveals that entrepreneurs and investors are always trying to bring new perspectives and innovative solutions to the education sector by entering into partnerships with learning institutions that demonstrate strong growth prospects with best practices.

“Such partnerships are not limited to funding but also include provision of advisory services and technical assistance that can strengthen the institution’s creditworthiness. This is the case for Tatweer Misr, which sought out a number of high-level universities and is currently in talks to bring new solutions to Egypt,” Shalaby notes.

Education Projects in El-Gouna El-Gouna is also home to education projects owned by Samih Sawiris and Orascom Development Egypt like ElGouna International School, in addition to Technische Universität Berlin (TUB) Campus El-Gouna, which is a unique public-private partnership (PPP) project in the field of education export.

Schools of New Giza for Real Estate & Development New Giza For Real Estate and Development is another developer that introduced a number of education projects at its New Giza Compound, encompassing El-Alsson British and American International School, spanning an area of more than 54,600 square meters, according to the

company’s website. The directors are committed to school improvement and providing high-quality, broad, and balanced education. Le Lycée Voltaire du Caire is also one of its projects, comprising purpose-based buildings and educational facilities that comply with international standards.

Covering an area of almost 210,500 square meters, New Giza University is the developer’s latest project in partnership with University College London. The university will be a hub for sciences, engineering, business, and medical knowledge, according to the university’s website.

Schools in Residential Compounds Talaat Moustafa Group developed a number of projects like the British School in Al-Rehab City, with more projects in the pipeline in his community complexes, a master plan

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published by the company showed.

As for SODIC, its 1.75 mn-square-meter development Beverly Hills boasts two language schools, Beverly Hills German School (BHS) and the New Vision International School (NVIS).

The company also developed British International School (BIS) in 6thof October City.

Egypt’s construction and real estate sectors are being buoyed by a national drive to build new schools, universities, and institutes with highquality curricula, a drive that is helping improve the country’s educational system. The Egyptian government and the country’s real estate developers are capitalizing on a comprehensive education reform plan that seeks to provide high-quality education for Egyptians, engage the private sector in the process, and help developers diversify their portfolios and increase their exposure to alternative sectors.

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as we are seeing,” Bichara says, adding that more high-end developments are being prioritized in the resort town and the goal to promote El-Gouna as the premier vacation destination in the country is being pursued. The aim is also to further grow the residential community in El-Gouna.

EL GOUNA FESTIVITIES’ TRIPLE EFFECT:

The company’s earnings release for H1, 2017 attributes strong performance to initiatives taken to “uphold the town’s livelihood and ‘Life As It Should Be” slogan, including the electric bike-sharing system and the PSA Women’s World Championship. Improving the amenities in the resort town is among the major costs highlighted in the company’s earnings call for the period.

Revive Cinema, Promotes Tourism, Boost Real Estate

BY YASMIN EL-BEIH

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vents catering to the interests of high-end potential clients and enthusiasts of young talent may contribute to heightening tourist, as well as, real estate investment inflows in the long term, experts say. Among those is the inaugural edition of the El-Gouna Film Festival, the brainchild of Egyptian billionaire and OTMT Chairman Naguib Sawiris. InvestGate looks into what EL-Gouna’s international ongoing events mean for the prospective investment climate nationally and in the resort town.

“We highly aim to promote tourism in the country through this festival with our wide reach and exposure whether it is local, regional or international,” Egyptian Actress Bushra Rozza tells Invest-Gate. “The organizing committee of the GFF has already started its on-site construction for three additional indoor cinemas that will hold programs throughout the year; this will activate the cinematic and cultural scene in El-Gouna and will also help in catering for different audiences’ interests.” Additionally, she describes the selections made as “rich”. The program includes up to 15 films in the Narrative Competition, 12 in the Documentary Competition, and up to 28 films in the official selection outside of the competition in addition to an average of 20 films in the short competition.

“Our event calendar is packed and it would positively reflect on El-Gouna’s real estate market,” Investor Relations Manager of Orascom Development Egypt, Sara El-Gawahergy tells Invest-Gate.

El-Gawahergy adds that the list of invitees was selected based on their discrete backgrounds, largely drawing from the attendee pool at major international film events, including the Cannes Film Festival.

“Many of them are familiar with El-Gouna...we have high-profile calibers attending from numerous countries outside of Egypt, it could be a trigger [for increasing real estate investments],” El-Gawahergy explains, mentioning the effect of other El-Gouna annual activities on investment, including El-Gouna International Squash Open alongside the PSA Women’s World Championship among the other initiatives, which have gained acclaim.

unclear timeline. Gouna News Reporter calls the move a “milestone” in the resort town’s existence.

Other initiatives El-Gawahergy refers to included capitalizing on building squash courts, a massive dedicated party venue in the pipeline that could host numerous events, and the Top Model of the World pageant held in El-Gouna this summer that featured beauties from discrete backgrounds.

Efforts are consistently being made for El-Gouna’s positive exposure globally, be it among the circles of entrepreneurs, supermodels, or artists, despite the current challenges facing the tourism industry.

El-Gouna is also home to the first electric bike system in Africa.

“We work very hard on the town’s management, which boosts tourism and enables real estate purchases. We have hosted numerous camps for children in El-Gouna. There is something to do everyday,” El-Gawahergy further argues, telling InvestGate that all these successes have taken place despite the inevitable fall in tourist inflows from Russia and the UK given the persistent travel bans on Egypt.

The international tourist population in the resort town is now largely constituted by Germans, Eastern Europeans, and some Italians.

While the portfolio of those purchasing homes in El-Gouna largely constituted of foreigners prior to the revolution, the majority of vacation home buyers there, in recent years, remain Egyptian due to the political turmoil and instability that the country has lately experienced. Increasing numbers of tourists and potential vacation home buyers from neighboring Arab countries, including Jordan and Lebanon, are interested, according to El-Gawahergy.

says that 80% of visitors at ODE-owned resorts are foreigners, who thereby pay in USD, which contributed to the positive performance as the value of the local currency fell.

The El-Gouna Film Festival is scheduled to take place September 22-29 and will likely bring together large groups of international and Arab filmmakers and industry professionals. Work by established and emerging filmmakers alike will be highlighted at the event with a team that includes documentary

filmmaker Amir Ramses, acclaimed actress and producer Bushra Rozza, alongside producer Kamel Zadeh. The event will be largely funded by private sector sponsors.

“Seeing that the world is suffering from serious conflicts across different regions, art has always been a means of uniting people; thus, the chosen theme for the GFF is ‘Cinema for Humanity’ as we aspire that this festival will have a positive impact on our society at large and will position us as leaders in the filmmaking industry,” Sawiris told US digital and print magazine the Hollywood Reporter back in May. As one of Egypt’s most favored vacation destinations increasingly becomes a hub for culture, sports, among other interests, a greater magnitude of interest than ever before is directed towards this luxurious town.

El-Gouna continues to promote the Egyptian culture, while promoting the historically influential tourism industry through festivities.

Occupancy rates improved and we were even able to increase room rates. Real estate sales reached a historical peak in EGP terms. We expect this momentum to continue

“Our growth is continuing at an accelerated rate, with Q2 performance more positive than Q1...the occupancy rate in El-Gouna goes to 77% in Q2, which is a positive and sustainable number as far

The organizing committee of the GFF has already started its on-site construction for three additional indoor cinemas that will hold programs throughout the year; this will activate the cinematic and cultural scene in ElGouna and will also help in catering for different audiences’ interests

In the company’s H1, ODE CEO Khaled Bichara

“In our H1, 2017 results, you would see enhancement in our lines of business operations. Occupancy rates improved and we were even able to increase room rates. Real estate sales reached a historical peak in EGP terms. We expect this momentum to continue,” El-Gawahergy positively comments .

ODE is actively partaking in numerous initiatives to attract heightened interest towards El-Gouna, including the launch of the first phase of offices and coworking space, G-Space, earlier in the spring on grounds previously owned by the American University in Cairo. G-Space is entirely sold out, and construction works have begun for a second phase, albeit at an 30 | INVEST.GATE | September 2017 - ISSUE 06

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fields to mix between work and fun.

While some prefer a permanent cowork space, others choose to have short-term ones popping on and off different locations around the world like that of Coworking Camp, a venture which went to several beaches all over the world, including Kemer in Turkey and El-Gouna in Egypt.

During its inauguration in El-Gouna last year, InvestGate met up with one of its visitors, Country Director at Anghami, an online music platform, Hossam El-Gamal.

“I only spent one week at the camp and enjoyed it a lot,” he says.

“It is a new life hack … mixing between fun and work,” confirms El-Gamal. The Coworking Camp in Gouna took place for the first time back in 2014 and attracted people from Egypt as well as 15 other countries.

“Coastal cities provide beaches of course, something we all miss throughout the year, [then there’s] water sports not to mention the beautiful weather. This makes you feel different than when you join a coworking space in the capital,” El-Gamal tells Invest-Gate.

Overlooking the sea, Coworking Camp in El-Gouna, featured informal gathering, which is highly applauded by the Anghami director. “We could hold meetings in swimsuits,” he delightfully comments.

Coworking Camp, to El-Gamal, had a flavor on its own.

“To me the experience was fruitful as you get to meet up with different people of different nationalities and diverse cultures,” he reckons. “So, hacking your business and giving new ideas was awesome.”

The international Coworking Camp venture, gathers people from different countries every three to four months on a beachfront site. El-Gouna hosted two of Coworking Camp “seasons” and is currently seeking a permanent space at the Red Sea resort.

According to a report published by Forbes Magazine in 2016, the coworking market has now over 7,000 players around the globe. Owners of coworking spaces have started such a business in the wake of the startup boom, the report said.

independent workers to move from Cairo to coastal cities in order to have a work-fun balance and at the same time reduce the centralization in the capital.”

RiseUp is a platform that connects startups, providing online communication tools in order to trigger social change.

Speaking at a news conference late last year, Sharara announced his plans to start a coworking space in Sahl Hasheesh, a bay located on the Red Sea approximately 18 kilometers south of Hurghada International Airport.

“The co-working space will gather a large community of Egyptian and foreign entrepreneurs, who will be able to work while enjoying the beach and summer activities,” he adds.

As co-working spaces have become centralized in the capital, sea view ones away from the noise have started to attract more and more young people who prefer to enjoy the fun-work mix.

Abdel Hamid Sharara, founder of RiseUp, says, “It is high time for Egypt’s entrepreneurs, freelancers, and

COWORKING SPACES MAKE HEADWAY IN EGYPT’S HOTSPOTS

BY MENNA A. FAROUK

B

usy holidaymakers are seeking an innovative way of working while enjoying their getaways. Invest-Gate explores Egypt’s coworking spots in Dahab and El Gouna as well as future plans to start others in Sahl Hasheesh.

“Resorting to coworking spaces in coastal cities with beautiful landscape and atmosphere, people can have a high standard of work-life balance,” says German entrepreneur Mira Arnold, the co-founder of CoworkInn, the first-of-its kind coworking space in the Red Sea town of Dahab.

Arnold opened her coworking space to help a growing community of entrepreneurs to gather and exchange their ideas somewhere far from the hustle and bustle of the capital.

“Dahab is so special with its sea and mountains, allowing you become creative with its quietness and seclusion away from the busy and crowded city like Cairo,” Arnold tells Invest-Gate.

CoworkInn offers working areas, conference and meeting rooms, a Skype booth, scanning and printing machines, and a pool, all with a sea view. It also provides a program of weekly activities such as Marketing Monday, which consists of sessions where attendees can learn how to present their businesses.

Arnold believes that the Egyptian appetite for 32 | INVEST.GATE | September 2017 - ISSUE 06

coworking spaces is growing because “more and more people are starting to work online,” she comments.

In February 2016

No. of mobile phone subscribers in Egypt

Mobile penetration According to data released by the Egyptian Ministry of Communications and Information Technology, the number of mobile phone subscribers in Egypt totaled to 98.8mn in February 2017 compared to 94.6mn in the same month a year earlier. Mobile penetration, meanwhile, hit 110% in February 2017, compared to 107.7% in the same month the year before.

However, Arnold has some concerns over poor Internet penetration in Dahab, calling upon the Egyptian government to ensure Internet access across the small town.

Despite the lack of Internet access, CoworkInn is becoming more and more popular, especially among its foreign visitors. “We constantly receive positive feedback from visitors,” Arnold says, highlighting the modest number of Egyptians who join her unique space.

94.6 mn %107.70

In February 2017

98.8mn %110

Stefanie Oeffner, a virtual assistant at DNX, a global movement connecting and supporting digital nomads with events and online services all over the world, says, “I had a wonderful time in Dahab. I spent every day at the CoworkInn and I loved it. The location is just beautiful, [with] cozy colorful beanbags, hammocks, tables, and chairs--everything you need.”

Carla Fernweh, an event organizer and one of the CoworkInn’s visitors, comments, “I stayed one month in Dahab and spent my work time at the CoworkInn. The place is so nice. You have different opportunities to sit and work. You can see the sea and on the other side, the mountains.”

People involved in the industry say that coworking spaces in coastal cities have recently been growing among freelancers and entrepreneurs across different THE VOICE OF REAL ESTATE | 33

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ION CLUB IN SAFAGA: SMALL-TOWN VIBES Safaga’s ION Club, a local franchise of an international adventure sports brand, opened in 1984 to cater to a growing number of watersports enthusiasts in the Red Sea area. Today, the center, located 53-kilometers south of Hurghada, offers windsurfing, kitesurfing, surfing, and standup paddling.

The destination mostly attracts foreigners as it is considerably more expensive in comparison to other areas, says the center’s manager, Mohammed Hassan.

He explains that prior to the revolution, the pool of tourist coming in was very diverse, although now his clients are mostly Eastern Europeans or Russians. He adds that 2016 “was a very bad year...in 2017, things are improving but haven’t reached the levels of 2013...and of course, all of this is nothing in comparison to the interest that was seen prior to the revolution...things remain a bit slow. We used to receive 50 to 60 clients a week, now only 15 to 20 clients come in every week due to the negative sentiment following the Metrojet crash,” he added.

SOMABAY’S INTERNATIONALLY ACCLAIMED 7BFT KITEHOUSE Rated among the top 3 kitesurfing sports worldwide due to its unique location and flat water conditions making it ideal for kitesurfing as it is blessed with 300 days of wind and stunning panoramic undisturbed views. “7BFT hosts an international kitesurfing tournament annually,” says Projects Development Director Sherif Mostafa.

Safaga is a convenient 45-minutes drive from Hurghada International Airport, and its small-town vibe and year-round winds keep it on the map for adventure sports enthusiasts. This positions it at an advantage in comparison to other destinations further south, such as Marsa Alam, which Hassan argues doesn’t offer enough of a range of accommodation options.

SOUL KITESURFING IN RAS SEDR: A SENSE OF COMMUNITY

WIND, WAVES, AND SUN:

Ras Sedr’s Soul Kitesurfing center is a booming attraction among Cairo’s circle of adventure sports enthusiasts. Established in 2008, the center primarily caters to the local market, be it Egyptian nationals or expats. Located a mere three-hour drive from Cairo, as the first destination on the road to South Sinai, Ras Sedr’s popularity has grown as the community of windsurfers and kiters magnified.

BEST KITESURFING SPOTS O N

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“This has definitely affected the real estate market, a lot of compounds have come up around here as more people began doing kitesurfing...A lot of people started buying apartments, hotel occupancy rates grew...the kiting community has brought Ras Sedr back to life,” one instructor tells Invest-Gate. “But still, it’s Sinai, so international tourism is very slow at the moment.”

HURGHADA’S KITEBOARDING CLUB EL GOUNA: HIGH-QUALITY INSTRUCTION

BY YASMIN EL BEIH AND MENNA A. FAROUK

K

itesurfing is boosting the tourism industry in Egypt’s Red Sea cities of Ras Sedr, Hurghada and Safaga, with many kitesurfing centers and camps popping up to accommodate the increasing numbers of kiteboarding enthusiasts. Invest-Gate gives an overview of some of the top kitesurfing venues along the Red Sea coast.

The Red Sea has been a main touristic hub for thousands of local and foreign

tourists, who seek to unwind, relax from their 9-to-5 jobs and enjoy the waves, sun, as well as experiment with water sports such as diving and parasailing.

But one particular watersport, kitesurfing, has been growing in popularity, with training centers for kitesurfing emerging in various places along the Red Sea since 2000. The most popular spots are located in Hurghada, Ras Sedr, Somabay and Safaga cities.

There is no doubt that Egypt’s Red Sea coastline is not short of kitesurfing venues to pick and choose from with prime kitesurfing conditions to ride from March to December. Whether you’re a beginner or an advanced rider, all you have to do is reserve a spot at your chosen venue and hit the waves. While you’re at it, don’t forget to enjoy the crystal blue water, soak up the sun and have fun.

RAS SEDR’S KITE BUZZ: A CARIBBEAN DREAM On the Caribbean-style coast of Ras Sedr, Kite Buzz is considered one of the leading spots to go for a thrilling kitesurfing experience. “Local tourists and

foreigners living in Egypt mainly come to Ras Sedr for kitesurfing. The whole city is [financially] dependant on kitesurfing and it is doing really well,” says Hatem Walid, founder and owner of Kite Buzz.

Walid tells Invest-Gate that kitesurfers usually visit Ras Sedr from September to December every year, adding that demand is at its highest levels in October.

“Although kite surfing has started a few years ago in Ras Sedr, it is really making headway, attracting a large number of adventure lovers,” Walid adds.

He also says that despite a significant drop in tourists visiting the country, the kite surfing sport in Ras Sedr has not been affected much. “Of course, there is some [negative] effect on the sport, but not as much as other activities because adventure travellers are considered the least segment affected by any decline in the tourism industry,” Walid notes.

Walid also says that the kitesurfing sport in general is witnessing a significant boom across the Red Sea attractions as owners of centers have succeeded in managing the business.

“Some owners have established accommodation places near the kitesurfing camps in order to add an advantage to their service and draw in as much visitors as possible,” he highlights.

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Soul Kitesurfing was the first center for watersports fanatics to open in Ras Sedr by an Egyptian founder and since then, another seven have opened after the older centers, owned by foreigners, closed down. “In the past, international foreign tourist groups used to come after flying in to Cairo, but this doesn’t happen anymore..they prefer Hurghada and Sharm El Sheikh,” says founder Sherif Soliman, “[This location is different] because we have steady mild winds, soft sand, not many rocks, ..big lagoons protected by coral reefs...the wind direction is good, and the bungalows are located just 10 to 20 meters from the shore.” Ras Sedr’s weather is ideal for kitesurfing from March through December, although in the most cold months of the year travellers swim in the nearby hot springs. “There’s a great vibe here, everyone plays the same sport...it’s a likeminded community,” Soliman added.

On the Red Sea’s western coastline, the thriving kitesurfing center “Kiteboarding Club El Gouna” attracts a large number of visitors every year who are treated to a high-quality training program, helpful beach staff, and top-notch equipment.

The center boasts more than 100 kites, 60 boards for rent and a lifeboat.

Natasha Appelman, a worker at the Kiteboarding Club El Gouna, tells Invest-Gate that most people go to El Gouna for kitesurfing and that the emerging sport is more popular than diving. “Of course, people go to El Gouna to enjoy their vacation, but the majority of visitors come to do kitesurfing,” she adds.

Appelman says that their center usually hosts 120 people per month in the summer period and the number keeps increasing every year. The kitesurfers are mostly foreigners living in Egypt. “The sport is really growing popular in Gouna and is attracting many people whether locals or foreigners,” Appelman adds.

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ÖKOPLAN

ASSOCIATE PARTNER OPTIMISTIC

on the Future of the Architecture Industry in Egypt

BY JULIAN NABIL

I

nitially founded by Prof. Dr. Tamer El-Khorazaty and Dipl.-Ing. Said Sorour in the early 1990s, Ökoplan is a leading engineering consultancy firm that has a long history of successful projects inside and outside Egypt. With the aim of digging more into the architecture industry in Egypt, Invest-Gate meets up with Ökoplan Associate Partner and Business Development Manager Dr. Rowaida Rashed to explore the company’s business journey from Germany to Egypt. Dr. Rashed shares her opinions on sustainability, the current business climate post EGP float, and gives an overview about Ökoplan’s latest major projects, including the New Administrative Capital, which Ökoplan is working on as part of 5+ UDC (Urban Development Consortium).

You originally founded your company in Germany in 1990 then opened another office in Cairo, what made you take this decision?

We began our operations in Cairo in 1993, at a time when our business started to slow down in Germany. Contrarily, Egypt was seeing a boom in the real estate sector with the establishment of new cities, which offered us multiple business opportunities. Hence, we decided to locate our headquarters and main business in Cairo, while keeping an arm in Stuttgart, Germany.

We started with the Heliopolis Sporting Club project in El-Shorouk City at the very beginning, as well as the planning of New Cairo City.

How is Egypt’s work environment different from other countries in terms of deals and operations sealed?

We have two types of clients in Egypt: large-scale companies and medium- or small-scale ones.

Business deals made with major developers like Emaar Properties are not different from those signed in the international market. The deals always comply with international standards, entailing detailed and accurate requests. However,

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individuals or small- and medium-sized enterprises are not as professional as larger ones, but we know how to deal with them, given our long experience in this field.

Working with international companies speeds up project delivery and guarantees high quality. The availability of resources and sufficient funding also play an important role in the completion of the project as scheduled.

On the other hand, the work environment in Germany is very organized, systematic and advanced. Thorough planning and design take up a long time, while construction is finished in a fairly short time once we are onsite.

What are the services do you provide?

With more than 270 architects, planners and engineers, we have a wide range of services; city planning, strategic planning, urban design, landscape design, architectural design, interior design, as well as structural engineering, electromechanical engineering, site supervision, and construction management.

I would like to mention that, more than ten years

ago, we expanded our firm, by adding Ökoplan Structures and Ökoplan Landscaping to the main structure of Ökoplan, and thus, gaining the long experiences of Eng. Taymour Elkhorazaty and Dr. Tarek Sobhy respectively.

We provide all these services in all design stages from conceptual design until tender and construction documents, in addition to site supervision in the construction stage.

What are the projects you worked on in the New Administrative Capital, as part of 5+UDC (Urban Development Consortium)?

5+UDC has won the competition to plan the New Administrative Capital in 2015. We- together with 5+UDC did the strategic planning for the 190,000-feddan New Administrative Capital. I would like to point out that we- Ökoplan Engineering Consultations- are part of 5+UDC, which comprises Archplan, Cube Consultants, Land Consultants, Concept, and Ökoplan. In this context we have also done the detailed planning of the first 40,000 feddans of the New Administrative Capital, as a first phase. We are also working on a number of projects

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inside the capital like universities, residential districts, and sovereign high-priority projects.

Together with the international consultant EDSA, we also did the landscape planning of the 5000-feddan central park of the New Administrative Capital, which consists of seven main parks spanning across 35 kilometers.

In addition, we are introducing the concept of the smart, sustainable city in the new capital, comprising compact zones or clusters, each of which having all services and facilities within reach.

The new capital has a number of distinctive projects like the central park and a central business district, which should attract multinational and international companies.

What are your other major projects? What do you have in the pipeline?

We were among the very first companies who worked on the urban planning of new cities like New Cairo, Al-Shorouk, Al-Obour and Badr.

We also did the urban, architectural, landscape and engineering designs of projects like Rooya Group’s Telal El-Alamein and Telal El-Sokhna, Stone Park and Stone Residence, and are still working on their new extensions, such as Stone Street within Stone Park Project, together with the international firm “Phase 3 Architecture and Design”, which is based in London.

We worked with Zaha Hadid Architects on the very challenging office park, mixed-use development

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Stone Towers, also owned and developed by Rooya Group.

As for our latest projects, besides the New Administrative Capital and the other projects I mentioned before, we are working, as part of 5+ UDC, on the 9-mn-square-meter Jazan University in Saudi Arabia with the international consultant and star architect “Isozaki, Aoki & Associates Co., Ltd.” whom we worked with before on the master planning of Egypt Japan University of Science and Technology in Borg El-Arab.

We are currently working on the urban, architectural and landscape design of the distinguished resort: “Mangroovy Residence” in ElGouna, developed by Elsewedy.

We are also working on the master plan of a new resort along the North Coast and have just finished the architectural design of the “School of Performing Arts” in Badr University.

practices that can be made to achieve sustainability such as using locally-produced and locally-sourced materials as well as durable ones that result in significant savings in terms of reduced-cost maintenance and repairs.

What is your style and what makes you different from others?

We work with different styles according to client’s’ needs, but we prefer to follow a minimal, simple contemporary modern style. We love to do architecture that is aesthetically beautiful and cheerful.

We try to introduce and initiate the sustainable and eco-friendly trend in the projects we do in Egypt, but it all depends on the developer as it needs a specific budget. However, there are simple

How did the EGP float affect the industry in terms of costs and final prices? Did it have an impact on demand?

We did not increase our fees a lot, especially since not all our clients are big developers. They are mostly small and medium-sized enterprises.

Although the EGP floatation led to a significant increase in construction costs, demand surprisingly still remains the same.

The population count is increasing by around 3 mn per year, so there will always be construction

What are the major challenges you faced when you started operating in Egypt and how do you see the business climate now?

There were not many challenges when we started our business in Egypt as the market was very encouraging and full of opportunities as we mentioned above.

On the flipside, the business environment is becoming very professional and competitive now, and the real challenge is how to provide the highest quality and meet clients’ high-standard requests. But generally, this year is better than 2016 and the market looks very promising.

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How will the EGP devaluation affect the industry, in your view?

The EGP floatation will encourage local manufacturing. We already motivate our clients to use local materials and systems in our projects.

And it is not only us who are doing so, but there is a trend in the market towards that.

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WATERWAY

MARASSI

DESIGNIA MALL

ABDEL MONEIM HAFEZ STREET HACIENDA BAY 6TH OCTOBER RAML STATION

FOUAD STREET

CAIRO FESTIVAL CITY

OMAR IBN EL KHATTAB STREET 5TH

SETTLEMENT

ALEXANDRIA ABDEL MONEIM HAFEZ STREET

CAIRO FESTIVAL CITY MALL ALEX-CAIRO DESERT ROAD MARAASHLI STREET

MOHAMED NAGUIB AXIS

CITY STARS

Do you want to add anything else?

We should all adopt the idea of sharing experiences

SHEIKH ZAYED HELIOPOLIS

ZAMALEK L PASSAGE

MALL OFMARASSI EGYPT WATERWAY

ABDEL MONEIM HAFEZ STREET OMAR IBN EL KHATTAB STREET

FOUAD STREET

POINT 90 MALL

OMAR IBN EL KHATTAB STREET ZAMALEK 5TH SETTLEMENT

CITY STARS MALL

CAIRO

CAPITAL BUSINESS PARK SHEIKH ZAYED

L PASSAGE

What advice do you have for young designers and architects, or small offices, today?

Do not care about how much you get paid at the beginning. Everyone has their own special circumstance, but young designers and architects should focus on how to gain experience, prove themselves, and build a name in the market. The really good opportunity will come later.

NEW CAIRO

HELIOPOLIS

How do you see the future of design and architecture after the EGP float?

We are always very hopeful and this is what has kept us going since the January 2011 revolution.

We try to continuously come up with new ideas and think out-of-the-box to adapt to ongoing changes. This year, we had a higher number of projects compared to last year.

OPENING SOON POINT 90

Do clients care more about quality or budget?

How do you strike a balance between both?

Every client wants to get the best quality with the lowest price. To maintain efficiency and keep the balance between quality and cost, we always work within the budget set for us by the client; this is our ongoing success strategy.

and ideas because this is what will help us develop and keep up to the pace of local and international changes.

5TH SETTLEMENT

projects carried out by the government and investors working to meet the growing demand.

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ALEX-CAIRO DESERT ROAD

NORTH COAST

RAM

FOUAD STREET

hotline 16885

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He has over 15 years of experience in Operations Management, leadership, and teambuilding in multinational companies with in-depth experience in creating LEAN environment with high-cost efficiency.

How do you add value to the real estate market through your platform? Why did you choose this sector in particular?

We offer two edges to the real estate market. Firstly, we completely eradicate all the inconveniences that come with showing and buying, from the excessive effort invested in the process by all concerned parties to the impracticality of navigating through heavy traffic for a venture that may or may not be fruitful. We offer the real estate market improved efficiency at minimal effort.

The customer does everything remotely at their convenience, which brings us to our second edge.

The ability to manage properties remotely via virtual reality technology is a hit with seasonal rentals and international real estate investors. A renter or buyer dramatically reduces the risk of disappointment upon arrival, while the seller and the broker manage properties from anywhere in the world.

To sum up, we offer unprecedented transparency, clarity, and accuracy in property inspection without moving from your spot. This has the added benefit of unlimited pressure-free, 24/7 accurate viewing, safety, security, unprecedented flexibility, and mass exposure, ensuring much higher rates of success in ventures achieved in comfort and confidence.

ONLINE HOME SHOPPING MADE EASY

WITH HOMES 360

H

omes 360 presents a new take on the real estate market in Egypt. The recently launched online platform invites its clients to take a virtual tour inside the desired property online, saving time, and money. Invest-Gate sits with the founders of Homes 360 Ahmed Ghoneim and Mohamed El-Garhy to learn more about the new platform.

What is your company’s main goal?

We have been through the usual problems everyone faces on the hunt for a property. It was a very draining and challenging process that inspired us to take action to revolutionize the industry for everyone involved on a serious level whether broker, buyer, or seller. We aim to save everyone’s time, money, and effort by eliminating scams, time wasters, and the frowned upon system of buying and selling that remains lacking transparency in the local market.

Our goal is to present a more logical and transparent system to both parties via the cuttingedge technology of virtual reality. Our website caters to brokers, buyers, and sellers. Each of these customers are offered the same time, effort, and money-saving service, where properties are basically fully-inspected across all fronts, from every corner, floor and ceiling, and even surrounding area without actually going there in person unless it is 42 | INVEST.GATE | September 2017 - ISSUE 06

the final stage before purchase.

There is no room for disappointments and unfulfilled expectations. The technology presents the property in such a way that is not manipulative or selective. It takes in the entire property as if you

Our goal is to present a more logical and transparent system to both parties via the cutting-edge technology of virtual reality.

BY NAYROUZ TALAAT

were there yourself, straight from the entrance to the door, into the property as well as all its nooks and crannies.

At this phase, our product is activated to offer enlisted properties through this technology, encompassing photo capturing, virtual tour creation, six-month enlisting, and a dashboard to manage your units.

Can you tell us a bit more about your background?

Ahmed Ghoneim holds an MBA from the Maastricht School of Management and a B.Sc. in Electronics & Communication from the Arab Academy for Science and Technology. He has fifteen years of professional experience in multinational companies with a track record, encompassing team building, team management, vendor management, and business development management. He is also the founder of PlatformVR, a leading high-end virtual reality production company in Egypt.

Co-founder Mohamad El-Garhy holds an MBA from the American University in Cairo (AUC) majoring in International Business, and holds a B.Sc. in Engineering from Cairo University with a specialization in Electronics & Communication.

How can the clients get your service?

We provide a simple user-friendly online registration system and a photo-shoot ordering tool for the desired property. Otherwise our contact information is available on our website if the clients want to get in touch with our team members.

How do you meet the challenge of attracting clients to use your technology?

Our first goal is to create awareness of our service and virtual reality in general as it is still a new technology to the market.

We are not positioned only as an advertising website with hundreds of new daily listings and a large amount of traffic. We are specifically positioned as a website for virtual reality…a listing, which is used for both advertising and online property inspection. Our service is not only to generate leads, but also to facilitate the property inspection so as to complete the service offered by top real estate websites.

What is your vision, and how do you see the current challenges in the market?

Our vision is to compliment the real estate listing industry with our service to shift the ways things are done, not only in Egypt but regionally as well.

The market is actually facing multiple challenges on a management level. Although real estate is one of the industries currently booming in Egypt, the real estate management is not well organized and lacks transparency. Given the fact that multiple players have roles in this market, it became too chaotic, harming all those players from buyers to sellers to brokers.

We are working towards shifting the scene from its current daunting status quo to the promising future it deserves, from heightened efficiency to transparency.

How many clients do you have so far?

We have already started working with major brokers and signing contracts with some of them.

We only started a few weeks ago and already have about a hundred listings. It is important to note that these are not the standard listings with a couple of photos of a property, which in some cases do not reflect the reality.

To provide this accurate virtual listing, our trained photographers use specific cameras, capturing spheres or 360° images that are then taken into post production to create our signature virtual reality tour and detailed viewing that appears to buyers as if they are walking inside a property and inspecting it live.

We are working towards shifting the scene from its current daunting status quo to the promising future it deserves, from heightened efficiency to transparency.

THE VOICE OF REAL ESTATE | 43

VOICE OF THE PEOPLE EXPERT

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DUBAI SMART CITIES PROVIDES GOLDEN CHANCE TO EGYPTIAN ENTREPRENEURS

BY NAYROUZ TALAAT

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s one among the 15 Egyptian startup founders selected to compete for a spot to participate in Dubai’s Startup Boot Camp, and as Invest-Gate’s Senior Business Writer, I was eager to further explore the Dubai Smart Cities concept.

The Dubai Smart Cities challenge, held in cooperation between globally acclaimed incubator Startup Boot Camp and the Government of Dubai, focuses on providing a space for smart startup ideas that can resolve daily life problems.

I founded Direxiona in 2016, with the aim of facilitating the process for women, who want to master driving through booking their classes online.

The selection of the 15 startups gave their founders the chance to meet with two of the world’s most inspirational entrepreneurial mentors, Managing Director of Dubai Smart City Todd O’Brien and Director of DTEC - Technology and Entrepreneurship at the Government of Dubai Hans Henrik. The two inspirational entrepreneurs mentored each startup team with a goal of strengthening their businesses.

Commenting on the idea of smart cities, “When I first moved to Dubai four years ago, I did not think [it was wise] take such a decision, but given that everything in Dubai is now smart, residing in the emirate was easy,” Henrik tells Invest-Gate, during his recent visit to Cairo back in July as part of Cairo FastTrack, a process preceding the Dubai Smart Cities’ program launch.

“The concept of establishing a smart city means empowering people to lead a happy life,” believes O’Brien. Dubai is gearing up for Expo 2020, providing an incredible opportunity for startups aiming to showcase their technologies and work with partners.

O’Brien was among the jurist panel meeting with the 15 Egyptian startup founders pitching their ideas at the Greek Campus, Egypt’s largest entrepreneurial hub located off Tahrir square.

The Dubai program focuses on evolving technological industries, including artificial intelligence, blockchain, sustainable living, the Internet of Things, and mobility.

SBC has already accelerated and invested in nearly 500 startups around the world that have gained more than EUR 240 mn and possess a combined valuation of EUR 1 bn.

The selected startups have projects on e-learning, women’s empowerment, artificial intelligence, transportation, and tourism.

Following official mentorship by O’Brien and Henrik, the 15 startups are then to apply for the Dubai Smart Cities competition incubated by Startup Boot Camp Dubai with their teams and receive the necessary mentorship and funds.

The selected team, which will travel to Dubai to undergo the three-month program, will get the chance to grow a business that can help any city worldwide apply an easy, sustainable, and “happy way of living,” according to O’Brien.

Henrik says, “We found that the Middle East has to host more competitions like Dubai Smart Cities in order to go in tandem with the breakthrough, taking place in the entrepreneurial world and technology worldwide.”

“We see that many developing countries need to work and connect more to the current updates of the smart cities’ concept to help improve both those, who have unique entrepreneurial ideas and improve their countries’ living standards.”

Despite the current economic challenges in Egypt and globally, the 2017 Global Entrepreneurship Monitor 2015/2016 report notes the important role that entrepreneurship can have in economic recovery. As more people become interested in pursuing entrepreneurship and with the growing perception of entrepreneurs in terms of status, the prospect for a stronger economy is magnifying.

of support organizations, emerging policy focus, and donor support programs,” according to the report.

“However, despite progress as an ecosystem over the past decade, a lot remains to be done.”

Nayrouz Talaat, The Contestant Invest-Gate’s team member, Nayrouz Talaat is a Reuters alumni and a Cairo-based business journalist who has worked for a number of Egyptian and foreign media outlets.

Driven by her passion for supporting an entrepreneurial revolution that started three years ago in Egypt, Talaat founded Direxiona, an online platform for empowering women on road.

She covered an array of key entrepreneurial events, including the Rise Up Summit. Visit Direxiona page, https://m.facebook.com/derxiona/ and support women on road.

“I find great interest in economically empowering women in every possible way.”

“Over the past decade, Egypt has witnessed an entrepreneurial revolution, with a growing number 44 | INVEST.GATE | September 2017 - ISSUE 06

THE VOICE OF REAL ESTATE | 45

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LAGUNA BAY: EXCEPTIONAL EXPERIENCES

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scape the chaos of the city with the tranquility of Ain Sokhna’s most laid-back yet enticing community at Laguna Bay. Enjoy the chance of living in the moment, and thwarmth and comfort of spending time with loved ones, all blended with generouhospitality.

Located right in front of the new El-Galala Road’s exit, a –mere- sixty-minute- drive from Cairo’s hustle and bustle, the relaxed atmosphere of Laguna Bay is home to one of the area’s most stunning beachfronts and one of its longest sandy beaches. The year-roun idyllic weather, Spanish Mediterranean-inspired architecture, and wide range of activities offered allow visitors to truly get back in touch with their soul’s desires and embrace peace of mind.

Drop your children at the supervised kid’s area while you relish in a romantic dinner on the pier. Whether you are looking for a high-end- culinary treat or an

exciting event, Laguna Bay offers something for everyone. Elevated on three “steps”, with walkways suspended from the walls separating each step, “The Sky Walk”, the entirety of the development’s units are waterfront. Whether you are walking from a friend’s chalet to another’s family home or on your way down the walkways to a kitesurfing session, the shoreline is uniquely visible at almost every viewpoint.

Laguna Bay is breezy throughout the calendar year.

Enjoy the carefree life at the 360° development, create lifelong friendships in a place with a vibe like no other, and listen to the calm whispers of nature in the surrounding silence.

Keep in shape with a run on the promenade or a squash match at the nearby sports complex. Lounge next to one of the themed pools when you feel like being lazy, go on a shopping spree for some retail therapy at the commercial strip, or visit the

clubhouse for a relaxing massage at the Spa. If you are only around for a night or two, stay at one of Laguna Bay’s signature hotels for a taste of a unique and unparalleled experience and return home appreciating the meaning of the most precious moments. Laguna Bay is home for the cool-yetreserved holidaymaker, who understands that an understated escape could be the true break of freedom when you need a breather. It is the place for building genuine bonds, lifting your spirits after a hectic week, making memories and getting back in touch with yourself. Soak in the sun after a quick dip in pristine waters, and learn to savor the richness of harmonious surroundings.

All units are delivered fully finished with installed kitchens from Amr Helmy Designs. For more information about Laguna Bay, visit www.lagunabaysokhna.com or call 16607

PHASE ONE L AUNCH 8 years payment plan

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