Skip to content Skip to Search
Skip navigation

Aldar’s Egyptian sales unhindered by war and economic risk

Construction work at Egypt's new administrative capital. Real estate 'is a very strong inflation hedge', says Aldar's Faisal Falaknaz Reuters/Mohamed Abd El Ghany
Construction work at Egypt's new administrative capital. Real estate 'is a very strong inflation hedge', says Aldar's Faisal Falaknaz
  • Egypt expansion unaffected
  • $1bn in sales forecast over two years
  • Developer ‘extremely optimistic’

Real estate developer Aldar says geopolitical and economic volatility is not affecting its expansion in Egypt.

The Abu Dhabi-listed company acquired its Egyptian subsidiary Sodic in December 2021. Since then, sales have risen by more than 50 percent on a dollar-basis, Faisal Falaknaz, Aldar’s chief finance and sustainability officer, told reporters on Monday. 

“What has proven over the past few years is that real estate is a very strong inflation hedge,” Falaknaz said. “We remain extremely optimistic for the long-term prospects of that market.” 

In March, Egyptian authorities devalued the pound and raised interest rates to secure $8 billion from the International Monetary Fund amid massive inflation and an economic crisis that is being exacerbated by the Israel-Hamas war and its impact on shipping through the Suez Canal.

Alongside the IMF support, Egypt is receiving $35 billion from UAE sovereign wealth fund ADQ – the largest foreign direct investment in the country – as part of a deal to build a city along the Mediterranean coast.

ADQ claims that Ras El Hekma will be “competing with the most important cities of the world” by 2052, but plans for its development remain vague, industry professionals told AGBI in March. 

Aldar’s Sodic announced last week that it would develop its third Nobu-branded hospitality project in the country.

“The recent developments we’ve seen in Egypt, whether on the ADQ side or the IMF side, have been quite positive,” Falaknaz said.

“I’m not an economist, so I cannot comment on where forex goes, but we remain very optimistic on the outcome.”

Aldar's Faisal Falaknaz said overseas buyers were becoming homeowners in Abu DhabiAldar
Aldar’s Faisal Falaknaz

On Monday Aldar reported net profit growth of 88 percent for the first quarter of 2024 and said it remained committed to its push outside of its traditional Abu Dhabi-base toward Dubai, Ras Al Khaimah and London, as well as Egypt.

The company is slated to log nearly $1 billion in sales in the next two to three years from projects in Egypt, according to Falaknaz.

Its backlog in the country “remains strongly profitable due to the efforts from the management team there to hedge both from the revenue and cost side”, he said.

In the first quarter of this year, Sodic brought in AED166 million ($45 million) in revenue and AED97 million in sales, Aldar said on Monday.

Latest articles

Investment app Sarwa had more than 180,000 registered users by the first quarter of 2023

Investment app Sarwa fined by Dubai and Abu Dhabi regulators

Investment platform Sarwa Digital Wealth has been fined AED1,151,000 ($313,500) by regulators in Dubai and Abu Dhabi for offering shares and securities without an approved prospectus. The Dubai Financial Services Authority (DFSA) said on Tuesday that it had imposed a penalty of AED701,815 on the fintech.  On the same day, the Financial Services Regulatory Authority […]

UK Prime Minister Rishi Sunak said the pledge ' sets a precedent for global standards on AI safety'

UAE joins AI safety pledge at UK-South Korea summit

Two artificial intelligence companies from the UAE have signed up to a new AI safety pledge and have committed to safe development of the technology. Abu Dhabi’s Technology Innovation Institute and G42 are among 16 names on the safety pledge that also includes Amazon, Google, IBM, Meta, Microsoft, OpenAI and Samsung. The announcement was made […]

Turkey FAB Yapi Kredi

First Abu Dhabi Bank targets Turkish lender

One of Turkey’s largest corporations has confirmed it is in talks with First Abu Dhabi Bank (FAB) over the sale of a majority holding in the Istanbul-headquartered lender Yapı Kredi, the country’s fourth largest private bank in terms of assets.  A report by Reuters on May 21 said sources told it FAB was offering around […]

Bruno Le Maire said France was also ready to help the UAE develop its own nuclear power plants

France ‘open’ to UAE investing in its nuclear plants

The French government is open to the UAE investing in the country’s nuclear power sector, its economy minister has said. Bruno Le Maire spoke to journalists in Abu Dhabi ahead of talks with Sultan Al Jaber, the UAE minister of industry and advanced technology, and Khaldoon Al Mubarak, chief executive of investment fund Mubadala and […]