Skip to content Skip to Search
Skip navigation

Egyptian builder blames currency turmoil for revenue slump

Orascom is working on a number of transport projects in Egypt, including lines 3 and 4 of the Greater Cairo Metro Orascom
Orascom is working on a number of transport projects in Egypt, including lines 3 and 4 of the Greater Cairo Metro
  • Orascom revenue down 19%
  • 5.5% rise if forex impact is excluded
  • Contract awards up sharply in 2023

Egyptian construction giant Orascom has reported a 19 percent decline in revenue to about $3.4 billion last year, attributing most of the drop to the devaluation of the Egyptian pound.

Orascom said that without the country’s foreign exchange issues, it would have reported a 5.5 percent increase in revenue compared to 2022, after completing a number of large projects. 

The pound has lost more than two-thirds of its value against the dollar since early 2022. On Monday the official rate for $1 stood at EGP47.

The Egyptian central bank said earlier this month that it plans to allow the exchange rate to be determined by market forces. 



Orascom said the Middle East and Africa contributed nearly 65 percent of its revenue last year. Operations in the US accounted for the rest.

Its contracts in the Middle East and Africa were mostly large infrastructure and commercial projects. Its US workload was a mix of commercial, infrastructure and light industrial. 

CEO Osama Bishai said contract awards increased by 59 percent in 2023 to nearly $6 billion. This led to its backlog rising 46 percent to $8 billion. 

Egypt and the UAE accounted for 55 percent and 11 percent of contract awards respectively. The remaining 34 percent is in the US.

The contractor has won a number of transport projects in Egypt, including a regional metro system in Alexandria and Line 4 of the Greater Cairo Metro. 

Orascom is also working on the Grand Egyptian Museum, in addition to being in the final testing and commissioning phase of the 93,000-seat national stadium that will be part of Egypt International Olympic City in the country’s new capital. 

Last year the company completed its packages on Line 3 Phase 4B of the Greater Cairo Metro, stretching over 11km.

It is also working on Cairo Monorail, which is expected to be the world’s longest monorail, and the high-speed rail line that will link Sokhna to Marsa Matrouh. 

“In the US, we are migrating to focus on a better quality of projects mix, mainly across aviation, data centres and industrial projects,” said Bishai in Orascom’s annual report.

Earlier this month, it was announced that Egypt would receive an $8 billion loan from the International Monetary Fund after agreeing to implement reforms.

In total, Egypt’s international partners have pledged almost $60 billion in loans, grants and investments. This includes a $35 billion investment in Egypt’s “largest new city” by UAE sovereign fund ADQ.

Latest articles

Adnoc sought advice from investment banks on buying a significant stake in BP, a media report said

UAE’s Adnoc explored acquiring BP

Abu Dhabi National Oil Company (Adnoc) explored the possibility of acquiring British oil major BP but abandoned the plan as it did not fit into its strategic growth objectives, a media report said.  The talks did not advance beyond the initial stages, Reuters reported, citing informed sources.  The UAE state oil company also sought advice […]

Turkish crude steel output rose 25% year on year to 3.2 million tonnes in January

Turkish steel in the black but EU rules rankle

Turkey’s steel industry has rebounded strongly from a weak 2023, despite facing new emissions standards and competition for important markets.  Crude steel output rose 25 percent year on year to 3.2 million tonnes in January, with domestic consumption of finished steel reaching 3.5 million tonnes, a 20 percent increase.  Exports were also up, increasing 23 […]

Passengers at Beijing Capital International Airport. Air China will fly from the airport to Riyadh three times a week.

Third Chinese airline to launch flights to Saudi Arabia

Air China is set to begin flights to Riyadh in May, becoming the third Chinese airline to establish a route to Saudi Arabia. It joins China Southern and Eastern Airlines in connecting China with the kingdom.  Air China’s Airbus A330-300 will serve the Beijing-Riyadh route three times a week. The expansion in capacity between the […]

Highway traffic in California. Opec said the upcoming 'driving season' in the US will provide the usual additional demand for fuel

Opec stands by predictions for oil demand growth

Opec predicts robust fuel use this summer and has stuck to last month’s forecast of relatively strong growth in oil demand in 2024 and 2025. The oil producers’ organisation predicted in its monthly report that global demand will rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025. […]