Egypt’s retail and hospitality sectors are poised for growth, driven by demand for premium experiences and international brands, according to a top executive of Egyptian listed real estate developer SODIC.
Ayman Amer, SODIC’s General Manager told Zawya Projects that the recently opened retail project EDNC (Eastown District New Cairo) is central to its strategy for expanding into these markets.
EDNC, inaugurated last month, has a Gross Leasable Area of 14,765 square metres (sqm) and is anchored by US luxury brand Nobu’s restaurant and hotel.
“By blending retail, hospitality, and leisure, EDNC sets a new benchmark for future projects and reinforces our vision of creating vibrant communities,” he said, adding that the developer is also exploring opportunities across Egypt, examples being the MATCHA high-end retail project, and Good Days luxury serviced apartments within its Caesar development in Ras El Hikma on Egypt’s Mediterranean North Coast.
Amer said the collaboration with Nobu includes luxury hotels, branded residences, and restaurants in The Estates Residences in New Zayed and the Ogami on the North Coast. The agreements were signed in August 2023.
In June 2024, the EGX-listed developer signed agreements Marriott International to bring the Tribute Portfolio brand to two of its hotels in West Cairo and the North Coast.
“These projects will continue to anchor SODIC’s presence in the luxury lifestyle space while contributing to the growth of Egypt’s tourism and hospitality industries,” Amer said, adding that the company is planning more mixed-use projects and luxury offerings going forward.
The SODIC executive also highlighted trends influencing the future of retail and leisure in Egypt noting that there is a strong shift toward experiential retail, where consumers seek unique and immersive experiences that extend beyond conventional shopping.
“The integration of technology into customer interactions is also on the rise, enhancing convenience and engagement. Additionally, the growing demand for sustainability is prompting businesses to adopt eco-friendly practices, reflecting a commitment to environmental responsibility,” he noted.
Financial performance
Meanwhile, SODIC reported on Tuesday that it sold 947 units in the first nine months of 2024, generating gross contracted sales of 39.8 billion Egyptian pounds ($817 million), an increase of 101 percent compared to EGP 19.78 billion ($406 million) during the same period last year. The surge in sales was largely driven by strong demand in the North Coast project, which accounted for 72 percent of total sales and 54 percent of contracted sales during the nine-month period.
In an interview with CNBC Arabia satellite news channel on Tuesday, Amir also revealed plans by the company to open two new offices in Saudi Arabia and the UAE, where it already has an office in Dubai. He noted that SODIC currently has liquidity of around EGP 3.85 billion ($79 million) and the value of its projects totals nearly EGP 82 billion ($1.7 billion), adding that it controls nearly 4.5 million square metres of land, which will be developed within 6-10 years.
The development portfolio of SODIC, majority-owned by Abu Dhabi-based developer Aldar, includes Allegria, Forty West, The Polygon and The Estates in West Cairo, Villette and EDNC in New Cairo as well as June, Caesar and Ogami on North Coast.
(1 US Dollar = 48.75 Egyptian Pounds)
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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