Al Ahly Sabbour is targeting to develop a 100-acre integrated residential project in the Sultanate of Oman, located within the Sultan Haitham City project. The project is expected to commence in early 2025 at the latest.
Engineer Ahmed Sabbour, Chairman of Al Ahly Sabbour, stated that the company is interested in acquiring a plot of land within the Sultan Haitham City project with plans to construct 2,000 residential units on the 100-acre site.
He confirmed in statements recently that the Sultanate of Oman is one of the promising markets in the Gulf, particularly in the real estate sector, and therefore Al Ahly Sabbour intends to expand there currently, especially in the Sultan Haitham City project, which is planned to be built on an area of 14.8 million square meters with 20,000 residential units and 100,000 inhabitants.
Sabbour added that the project will be developed under a partnership system and is planned to include residential units, as well as the commercial, administrative, and service areas.
About two months ago, Dr. Khalfan bin Saeed al-Shawali, Minister of Housing and Urban Planning in the Sultanate of Oman, visited Egypt to discuss ways to enhance joint cooperation between the two countries in the field of urban development, and to exchange expertise and experiences to continue achieving urban development in the two countries.
Al-Shawali met with a number of officials from Egyptian real estate development and contracting companies to discuss ways of cooperation with them and to present the investment opportunities available in the field of real estate development in the Sultanate of Oman.
In a related context, Sabbour said that his company is targeting to achieve total sales this year of around 30 billion Egyptian pounds, in conjunction with a plan to increase investments to 6 billion in 2024 compared to 5 billion pumped in 2023.
He added that the expected loans for this year amount to 1.7 billion Egyptian pounds, including a loan from the National Bank of Egypt, the details of which will be revealed later, in addition to benefiting from various financing tools, including real estate financing and lease financing.
At the end of last year, Beltone Financial Leasing and Factoring Company signed an agreement with Al Ahly Real Estate Development – Sabbour to sell and lease back real estate assets worth 1.2 billion Egyptian pounds. The financing will be in two tranches, the first reaching 600 million Egyptian pounds, while the second will be marketed by Beltone Financial Leasing and Factoring Company under a risk-sharing system with other financial institutions.
Sabbour said at the time that the agreement would strengthen the company’s financing needs; as it contributes to accelerating the pace of construction and construction work and supporting its brand in the real estate development sector in Egypt and soon in Saudi Arabia.
On the other hand, Sabbour this year aspires to deliver 2,500 units, which is 1,000 units more than the previous year, as 1,500 were delivered during the previous year.
He announced the progress of negotiations on two plots of land, the locations of which were not mentioned, as part of the group’s expansion plans in the local and foreign markets.
Sabbour explained that there are no new steps yet in Ras Al-Hikma, but he confirmed the interest and endeavor to apply for land to develop it in the city with an area of not less than 1,000 acres.
He spoke about the pricing rates in the real estate market, where he explained that the company prices based on market prices, economic indicators, construction costs, and interest rates.
He confirmed that prices will not decrease but will increase at a slower pace than the previous year due to the stability of the exchange rate, and that they will increase in the North Coast regardless of the demand, as the Ras Al-Hikma project, in addition to the state’s preparation of the coast with facilities and roads with the expected project for Talaat Mostafa Group, all of which are factors that will lead to this increase.
Sabbour expected prices to increase by an average of 20% and in the North Coast by about 50% during the current year.
He spoke about the company’s achievements in the previous year, where it achieved 12.5 billion Egyptian pounds, an increase of one billion from the target (11.5 billion), and four new companies were established, namely “Mille” for non-residential projects, revealing that the volume of its work reached 70 billion with the intention of stabilizing the volume of business.
