We are a leading developer of fully integrated tourist destinations that offer hotels, private villas and apartments, leisure facilities such as golf courses and marinas and the supporting infrastructure, as well as budget housing communities, with a focus on international expansion and a dedication to achieving excellence. Our strategy focuses on creating self-sufficient towns by securing extensive stretches of land at low cost in locations with high potential and working to optimize overall value by offering a high-quality, fully integrated living experience.
The Group began with a simple idea – to create a little piece of paradise on the exquisitely desolate Red Sea. El Gouna has since evolved into a fully integrated town with a population of 12,000 permanent residents and a steady yet growing number of hotel guests creating a thriving community throughout the year. The successful model of El Gouna has since been applied and adapted to new developments all over the world.
At Orascom Development we remain firmly dedicated to expand our portfolio internationally, broadening our scope to include international communities. This will enhance the share of our international presence and reduce the exposure to any single country over time. Our growth is driven by the confidence we have in our tried and tested business model, which combines the acquisition of undeveloped land in prime locations, the development and marketing of fully integrated towns, and active partnerships with the best international hotel management chains. The Group controls the entire value chain from the inception of a new town, overlooking various development stages until it becomes self-sufficient and mature. This integrated business model allows tight cost control as well as efficient deployment of resources and leads to incremental value creation for existing properties as well as for the residual land.
A key long term value driver for the Group is our land bank, which we have been awarded in several jurisdictions at nominal costs. One of the main criteria for the selection of a particular site is the amount of land required to develop self-sufficient communities and towns in the long term.
We aim to create value in our real estate over the medium to long term. We develop towns in phases, where in each phase we balance the supply of residential real estate, available commercial space and the necessary infrastructure with the demand from existing and new residents of the town. This allows us to maintain a moderate increase in the average selling prices of residential real estate over time.
In addition, we invest in facilities, buildings and infrastructure that on a stand-alone basis might not be financially attractive but, because of the needs and expectations of residents and visitors, add to the appeal of the community. We benefit both directly through the sales of residential real estate and indirectly through our ownership of the hotels, commercial properties and town facilities.