Who's Who Egypt 2007 by Focus International

contents 3

Overview The Egyptian economy is on a roll

Multi-Billion-Dollar Jewel of the Red Sea Nasser Al-Kharafi’s vision materialized at Port Ghalib

11 A Dream-Like Location for a Dream-Like Development Khaled Shaheen chooses Egypt for developing the Serrenia project 12 Creating a Home Away from Home Zoheir Garranah discusses residential tourism in Egypt, and more 15 Delivering 21st Century Hospitality with Historical Flair The Shepheard Hotel is well positioned to maintain its luster well into the future 16 Rolling out the Red Carpet Cairo’s Top Hotel Managers Share their Views 18 Synergy, Elegance and World Class Excellence Hisham Shanab discusses the evolution of Cairo’s premier multi-purpose real estate complex 19 When Business and Pleasure Intertwine The Sheraton Cairo Hotel, Towers and Casino, blends luxurious comfort and top business facilities 20 Taking Cairo’s Charm to a New Level Mohamed Elayouty aims to take the boutique hotel concept from Cairo to the rest of Egypt

27 The Vantage Point of Mountain View An innovative player in Egypt’s real estate market sets a new standard of luxury living - and the way it is marketed 30 Building the Foundations of Egypt’s Success Samcrete aims to satisfy the most demanding requirements of foreign developers 34 Egyptian Champion in the Gulf Makes a Strong Homecoming A. Moez & Moh. Hegazy increases its operations in Egypt, accompanied by its well-established client list in the Gulf 36 Al Ahly Real Estate Embraces Opportunities in the Gulf The strategic role of the GCC region in the company's plans is today stronger than ever 37 Regulating for Change The Mortgage Finance Authority leads the transformation of an industry that could change the foundations of Egypt’s economy 40 How Gulf Investors are Bringing Real Power to the People Amlak Finance, the largest publicly listed Islamic home finance company, launches its operations in Egypt 41 A Market Leader in Mortgage Finance The extraordinary growth of the Housing and Development Bank signals the potential of the nascent Egyptian mortgage finance market

21 Reinventing Alexandria Foreign investment promises to boost the legendary city's international appeal

42 Egyptian Gulf Bank Looks Forward to Bright Future Prospects With a new CEO and strategic plan in the making, EGB is set to profit from Egypt's banking reforms

23 Off to a Strong Start Direct Travel enters the car-rental market in Egypt–and plans to contribute to its transformation

44 Providing the Link Export Development Bank of Egypt looks to bring Egyptian industry to the forefront of the Arab world

24 Boom Times Ahead Taher Helmy discusses the causes of Egypt’s recent economic boom–and its sustainability

46 EFG Hermes Emerges as Leading Regional Investment Bank After a transformational year in 2006, EFG Hermes moves forward with tremendous momentum

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In a recent article, Peter A. Carrigan, columnist of the Daily Star, states that “Egypt is hot,” referring to the buzz and fascination that surrounds anything related to the country's immensely rich cultural heritage, and its attractiveness for tourism. While the author was referring mainly to the perception of Egypt among Londoners, it could safely be said that this perception is shared by the people living in virtually every other metropolis across the world–and prominently among them, by business leaders from the Gulf. The main reason for this is the economic resurgence that Egypt embarked upon since the cabinet led by Prime Minster Ahmed Nazif took power in 2004, implementing a package of economic reforms the results of which are starting to show prominently in almost every indicator of economic activity, specially during 2006 and the beginning of 2007–periods that saw record-braking performance in key macroeconomic figures. For Who's Who Egypt 2007, we had the pleasure to interview some of the most important leaders in three of the hottest sectors of the Egyptian economy–real estate, finance and tourism. What follows is a collection of articles that summarize their views and insights on these sectors' performance, potential for growth, impact on the overall economy, eagerness to partner with investors and serve customers from the Gulf, and key challenges to address in the years to come. We have no doubt that these are exciting times for Egypt, and that the country's business leaders have what it takes to sustain the strong economic growth of today, help translate it into widespread socio-economic benefits for the Egyptian people at large, and strengthening the country's competitiveness in the global economy.

Olga Arndt Project Director LeadersPress

Project Director: Olga Arndt e-mail: olga@leaderspress.com Editor and Senior Writer: Alan Furth e-mail: alan@leaderspress.com Burjuman Tower, 18th floor P.O. Box 43659, Dubai, U.A.E. Tel: + 971 (0) 4 509 6690 Fax: + 971 (0) 4 509 6797

Contributing Writers: Julie-Ann Amos Alison Gjefle Tim Hiscock Design: Javier Dumont

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Who’s Who - Egypt 2007

Overview The Egyptian economy is on a roll. In Who's Who Egypt 2007, LeadersPress talks to key people in the real estate, tourism and finance sectors–all of them at the heart of the Egypt's economic resurgence.

006 was a record-breaking year for Egypt's economy. A host of key macroeconomic indicators showed significant improvements: economic growth exceeded the 7% mark-a figure unsurpassed since the late 1980s. Key drivers of the economy were a 33% growth in exports and 13% growth in personal consumer expenditure in FY 2006, while FDI exceeded US$6 billion in 2006, and touched US$7.2 billion during the first half of FY 2007. This was more than double the US$3.3 billion it achieved during the same period last year, and the government expects it to exceed US$8 billion in 2007. The oil and gas sectors experienced burgeoning growth driven by strong global demand, while non-oil exports grew more than 30% during

2006. This strong economic growth brought increased income to Egypt's consumers, and some analysts predict consumer spending will grow steadily through to 2011. “We must be doing something right,” said Taher Helmy, President of the American Chamber of Commerce, who firmly believes the economic reform agenda carried out by Prime Minister Ahmed Nazif's Cabinet is largely responsible for these remarkable economic results, in a much larger measure than the favorable external environment that has driven Egypt's recovery since 2003. The most encouraging aspect of the sharp rise of FDI during 2006 is the diversity of the economic sectors in which it has occurred, with only 30% of

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it in oil and gas (down from 80% in previous years). Economic headlines during 2006 were dominated by the

FDI Exceeded US$6 billion in 2006 announcement of a string of remarkable deals that clearly show an increase in investors' appetite for Egyptian assets across the globe. Helmy elaborates: “Investment is pouring into Egypt from all over the world; from the US to the Gulf, from Europe to India and China. In 2006 we had great success stories like Gruppo Sanpaolo IMI buying 80% of the Bank of Alexandria for US$1.6 billion,

Who’s Who - Egypt 2007

nearly six times its estimated book value, and Amoun Pharmaceuticals selling a 93% stake to a consortium of international private equity investors for almost half a billion USD - one of the largest private equity transactions in Egyptian history. This diversity of sources and targets of FDI is noteworthy, and, in my opinion, shows that Egypt is doing a good job earning the trust of the global business community.”

Egypt and the Gulf Gulf investors were particularly enthusiastic about Egypt during 2006. Etisalat won the bid for operating the country's third mobile phone license, paying a whopping US$2.9 billion for it, almost 70% higher than expected, and 17.6% higher than the second highest offer from another Gulf giant, Kuwait's Mobile Telecommunications Company. At a press conference immediately after the auction, Etisalat's CEO, Mohammad Omran, said that “this was no small sum, but Egypt is a key market where there is great potential for growth.” The real estate market in Egypt saw 4

strong growth for the third consecutive year, and, again, Gulf investors were particularly eager to take advantage of it. During the summer of 2006, Emaar won the bid for developing a year-round tourist destination at Sidi Abdel Rahman on the North Coast, to be known as “Marassi.” This development complements a portfolio of projects that, with a value of almost US$4 billion, makes Emaar the largest foreign investor in Egypt (at the time of writing,

Emaar had acquired full ownership of its Egyptian operations after long negotiations with its local partner, Artoc Group for Investment and Development.) Damac joined the party by announcing its “Gamsha Bay” project, a fully integrated development 60 km north of Hurghada, in which the firm will commit several billion US dollars during the course of the next ten years. The Kharafi Group's Port Ghalib at Marsa Alam, a project that has already become a benchmark in tourism development in Egypt, enjoyed significant progress during 2006. The Marsa Alam International Airport (also owned by the Kharafi Group) is currently undergowww.leaderspress.com

The real estate market in Egypt saw strong growth for the third consecutive year

Gulf investors were particularly enthusiastic about Egypt during 2006 ing an aggressive expansion plan, originally scheduled for 2011, in response to the large numbers of visitors Port Ghalib is attracting to the area. Egyptian developers have been equally active. The Talaat Moustafa

Who’s Who - Egypt 2007

Group launched its “Madinaty” mega project, which will host 80,000 residential units and an estimated population of 600,000. SODIC underwent a LE 1.2 billion capital increase after its merger with Palm Hills, the group owned by AlMansour and Al-Maghraby Investment and Development. Furthermore, the willingness of both large and mediumsized Egyptian developers to form partnerships and other types of alliances

Damac joined the party by announcing its "Gamsha Bay" project with investors from the Gulf, and to cater to potential customers in the area (both Gulf nationals and emigrated Egyptians), was an important reason we chose real estate as one of the three key sectors to review in this Who's Who

guide. In the pages that follow Egyptian developers show a marked optimism about the prospects of strengthening their ties with the Gulf: “With the changes occurring in the local market, we see tremendous opportunity to leverage our skills and experience, and bring our client list from the Gulf back to Egypt,” says Ibrahim Hegazy, Vice-President of A. Moez & Moh. Hegazy, an Egyptian consulting firm in the fields of engineering and architecture, with a strong presence in the Gulf since 1968. Amr Soliman, Chairman of Dar Almimaar Holding, owner of a fast-growing development company, says he considers investors from the Gulf as “key potential partners to help us fuel the expansion of the scale and reach of our operations.” The strengthening of economic ties with the Gulf was symbolized at the Arab Strategy Forum in Dubai last December, at which Egyptian Prime Minister Ahmed Nazif was one of the key speakers. During the event Egyptian Minister of Tourism Zoheir Garranah, and Hussain Sajwani, Chairman and Founder of Damac

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Holding Group, signed the construction agreement for the “Gamsha Bay” project. The number of tourists from Arab countries visiting Egypt in 2006 increased sharply, adding to the business and investment momentum between the Gulf region and Egypt.

The number of tourists from Arab countries visiting Egypt increased sharply during 2006 Qatar visitors increased by 86.9 percent during the first semester, followed by Palestine (17.4 percent) and the UAE (11.9 percent), and their tourist nights rose 63.8 percent, 26.9 percent and 25.1

Image provided by Four Seasons Alexandria

Who’s Who - Egypt 2007

The Bibliotheca Alexandrina at Alexandria

percent respectively. Adel O. Cherif, Assistant Vice President of the Egyptian General Company for Hotels and Tourism, points out that the “Growth in the number of visitors from the Gulf is expected to increase during the next couple of years, and Egypt is gearing up its tourism offerings to fully take advantage of their high purchasing power and our cultural affinity.” The basis of a functioning market economy While most of the developments being launched by GCC-based real estate giants are luxurious tourism and residential projects catering to the highest income earners and wealthy foreigners looking for holiday homes, their multiplier effect on the economy is considerable. Through job creation, these projects will end up benefiting the population's lower-income groups. This is the most basic mechanism by which an economy based on free market principles transforms the profit-seeking endeavors of investors into concrete benefits for society. 6

But to make a more significant impact on the standards of living of Egypt's population at large, the current real estate boom has to be replicated in the medium- and low-income segments of society. Besides macroeconomic stability, the most important development furthering this socio-economic objective is mortgage finance reform. That's why we have selected it, within a wider

Amlak Finance made its Debut in Egypt perspective of the financial markets in Egypt, as the second sector for review in Who's Who Egypt 2007. Encouraged by these reforms, companies like Amlak Finance, the largest publicly listed Islamic finance company and a pioneer in home finance in the UAE, has made its debut in Egypt. Spurred on by government incentives to push private developers to enter the budget-housing market, Orascom Hotels and Development announced in January the www.leaderspress.com

launch of Orascom for Budget Housing, with planned investments of almost US$500 million in housing projects. The move complements Orascom's establishment of Tamweel, the group's mortgage finance company, in September 2006. Ahmed Sabbour, Managing Director of Al Ahly Real Estate Development, says that “[the Ministry of Housing] came up with some brilliant ideas that enable private investors to acquire land for middle-income targeted developments on very favorable terms.” Investors throughout the Gulf are taking note, and Al Ahly is currently in talks with several of them for business possibilities in this segment of the market. In the end, as Taher Helmy points out, “A fully functioning housing market is definitely the key to a dynamic market economy,” and we couldn't agree more. In the pages that follow, we present a selection of articles featuring the key people in government and business that are consolidating Egypt's real estate, tourism, and financial markets as three of the major pillars of this vibrant country's economy.

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Who’s Who - Egypt 2007

A Dream-Like Location for a Dream-Like Development Internationally-renowned Jordanian entrepreneur Khaled Shaheen chooses Egypt as the ideal place to build a unique luxury residential resort and hotel project

anuary 23, 2006 marked the ground-breaking of Serrenia, the US$3-billion residential and hotel resort at Sahl Hasheesh, which is projected to become one of the most opulent waterside complexes in the world. This ultra-luxury paradise on Egypt's Red Sea coast is being developed by Shaheen Business and Investment Group (SBIG). The scale and scope of this sumptuous project has captured the attention of the world's leading travel publications, architecture critics, tourism industry experts, and celebrities, including singer Lionel Richie. After Richie's live performance at Serrenia's official launch in Cairo in mid-December 2006, he announced his intention to buy a property in Serrenia. The resort is already being hailed as a complex of unique architectural dimensions, which could place it at the forefront of the most sought-after recreational addresses on the planet. Clearly, it has already made an impact on the media, pundits, and the rich and famous. Designed by world-renowned architects Foster and Partners (it is actually the firm's first luxury resort), Serrenia represents a landscape of cutting-edge, sleek originality. The resort includes a snake-shaped seven-star hotel, a flying-saucer-shaped yacht club nestling at the heart of a 300-berth marina, and a complex of US$20 million-plus “palaces,” inspired by the

crescent-shaped barchan sand dunes formed by the prevailing northerly winds in the surrounding desert. This opulent oasis is being driven by esthetic architectural standards unparalleled in the world. But innovation per se is not where the real charm of the project is. Harmony with Egypt's culture and environment is, perhaps, more important. The renowned Jordanian entrepreneur, Khaled Shaheen, Chairman and CEO of SBIG, points out that “ultra-modern design on its own wouldn't have been of any value, but Foster and Partners did an outstanding job in using esthetic elements inspired by the marvels of the Red Sea and the historical wonders of Egypt.” Or, in the words of Lord Foster, Founder of Foster and Partners, in a recent press statement, “[Serrenia] maintains the character of the desert with a contemporary reinvention of the Egyptian garden. We sought to evolve designs which would respond to the natural environment, reflecting Egyptian history, as well as maintaining the character of the desert.” Covering an area of over three million square meters, and accommodating several types of residences, including palaces and a range of villas and apartments, Serrenia will entail an investment of approximately US$3 billion. The resort complex will offer a world-class spa, a championship 18-

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Shaheen says he “hates repetition,” so he's established extraordinary standards of luxury and design for the Serrenia project– standards the world has rarely seen

hole golf course, restaurants, retail outlets, a heliport for guests, a beach club, and other sporting facilities. The project will take three years to complete. The palaces, villas, and apartments echo the shape and range of colors found in the desert's dunes. Each property has its own swimming pool, as well as lush tropical gardens with water features. Serrenia's Marina 'Hub' is one of the focal points of the development with an extraordinary, wave-shaped floating roof and a vast, airy, cool space below. It accommodates carefully selected leading brand stores from around the world. A central pier, yacht marina, and beach club extend from the hub. From a service perspective, there are virtually no restrictions. The project's Website reads, “If your daughter's favorite pony needs to be part of the family vacation, arrangements can be made for horse and groom to be flown in.” No time to sail your yacht to Egypt to host that special party? No problem, Serrenia can have it sent in advance. Notwithstanding Serrenia's level of luxury, Mr. Shaheen is eager to stress that customer value for money is a top priority in the project. “Our palaces are certainly reserved for the very wealthy, but a good number of apartments will be available for approximately US$500,000. You don't need to be a millionaire to become a member of the Serrenia community.” 11

Who’s Who - Egypt 2007

Creating a Home Away from Home The Ministry of Tourism aims to capitalise on Egypt's popularity with Gulf travellers, focussing on its close relations with the region and its growing range of attractions

s Egypt's Minister for Tourism, H.E. Zoheir Garranah is playing a key role in driving the country's economy. Tourism in Egypt accounts for at least 11% of all jobs in Egypt, and contributes to some 70 other sectors. In conditions that most people in the travel industry acknowledge to be difficult, Egypt's tourism sector is achieving creditable growth in income of around 5% per annum. Much of this growth is coming from visitors from the Gulf states, and Mr. Zoehier Garranah's Ministry is dedicating much of its efforts on making the country an attractive destination for Gulf tourists. Building on Egypt's Ties with the Gulf “Our ties with the Gulf are stronger than ever,” Mr. Garranah explained. “The Gulf is a strategic partner of Egypt in the tourism industry. In the

past three years, there has been a very significant increase of investment from the Gulf in tourism development projects, and we feel that there is great potential for this market. Last year we had a 13% increase in tourism coming from Arab countries.” The Gulf States are seen as a source of particularly stable growth in business for Egypt. Mr. Garranah has extensive knowledge of the tourism industry in Egypt, having spent 25 years working in the Garranah group of companies, where he rose to become Chairman and helped steer the Group's extraordinary growth from a small company staffed by seven people to a global conglomerate employing some 2400. He has been chosen to apply his experience in

H.E. Zoheir Garranah is leading the drive to attract 14 million tourists to Egypt annually by 2011

achieving the government's target of 14 million tourist visitors per year by 2011. New Investments in Infrastructure The dedication to reaching this target is demonstrated by the level of targeted investment that is taking place at key destinations. Cairo airport will

Image provided by Sheraton Cairo Hotel, Towers & Casino

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Who’s Who - Egypt 2007

grated mega-developments, such as in El Gouna. These massive projects enable large scale developers from countries such as Saudi Arabia and the UAE to undertake self-contained developments that include international class hotels, restaurants, shopping and leisure facilities. Further projects are already in the pipe-line for other destinations. The Tourism Ministry sees these investments as essential in their efforts to build on the already rapid growth in numbers of tourist visitors from the Gulf. Attractive Resorts, Competitive Prices

Image provided by Sheraton Cairo Hotel, Towers & Casino

have doubled its capacity by the end of this year, and the recent opening of the new airport at Sharm El Sheikh, together with the expansion of Hurghada and Marsa Alam BOT airports will in themselves transform a number of resorts, making them much more accessible for frequent visitors, and making Egypt a more feasible choice for buyers of holiday homes.

“Every foreigner is treated today as an Egyptian in terms of the essential rights for investors” Government initiatives are in place to lift restrictions on air traffic to these destinations, and enable a greater number of direct flights from the Gulf States. Air links to the Mediterranean coast are also being improved, and there are efforts to forge ahead with

an ambitious overhaul of the country's rail network, whilst relaxation of rules on coastal development are allowing for the construction of new marinas. One recent report named Egypt as the

Mr. Garranah believes that Egypt has some major advantages as a destination for Gulf tourists: the pleasant ambience of the Mediterranean coast complements the prospect of sunshine all year round in the popular resorts of the Red Sea and Sinai. Real Estate prices in Egypt are still very reasonable compared to many Gulf resorts, and recent liberalization of traditional restrictions has made it much easier for foreigners to buy property. “Every foreigner is treated today as an Egyptian, in terms of freehold, right to use, selling and buying, registering,

Elezabi wants to strengthen Egypt's marketing efforts in the Gulf

Undiscovered Golf Destination of the World. Improved infrastructure and communications are essential elements to the realization of planned, fully intewww.leaderspress.com

all the essential rights for investors to be able to realize the full potential of their investments are today fully assured in Egypt,” Mr. Garranah explains. “In fact, If you compare the 13

Who’s Who - Egypt 2007

price of assets in Egypt with anywhere in the world today, you will find that it is difficult to beat us in terms of value for money. You can buy a villa in Egypt for the price of a studio in Europe.”

Real Estate prices in Egypt are still very reasonable Retail At present, Mr. Garranah admits that Egypt is still weak in the area of large shopping developments, and believes that this is a particular issue for visitors from the Gulf, who like to visit the country as families. The development of the retail sector in Egypt suffered for many years from protectionist polices that have now largely been removed, and there has already been a rapid improvement in many parts of the country, but there is a real need for government initiative to encourage more growth in retail. “Last year we had 1.9 million tourists from Arab countries visiting Egypt, and if we want to increase that figure to 3-4 million, it will not suffice that we have a similar culture, speak the same language and have all the historical and natural marvels that everyone knows about: we also need to offer them equal or better opportunities for shopping than in their home countries.” Training and Marketing Amr Elezabi, Chairman of the Egypt Tourism Authority (ETA), explained how the industry is addressing the key issues of marketing and training that will underpin the ambitious growth targets for the industry. “The trainers themselves move to the important tourism spots of the country like Sharm El Sheikh, Hurghada, and so on. And they undertake the training initiatives on site, using the existing facilities. This is a very efficient way of addressing the urgent need for training there is in our 14

country until we develop a series of training centers in the main tourist areas.” Mr. Elezabi is also overseeing an approach to marketing Egypt in the Gulf States that will utilize Egypt's very strong reputation throughout the Arab world for cultural excellence. The Tourism Authority is organizing a program of promotional events covering a number of the Gulf States that will encompass cultural and artistic activities as well as a ministerial visit and specific promotions by leading companies. Mr. Elezabi has 14 years of experience in promoting Egyptian tourism, www.leaderspress.com

including periods when he worked in ETA offices in Europe and North America. For tourists and investors around the Gulf, the message from Egypt is that the market is very much open for business, striving to provide a unique experience that will exceed expectations, and above all, assure a warm welcome. As Mr. Garranah confirms: “We always like to say to investors and tourists from the Gulf that they are always welcome to Egypt as a second home.”

Who’s Who - Egypt 2007

Delivering 21 st Century Hospitality with Historical Flair

Cherif boosts the Shepheard’s competitiveness for the 21st century while mantaining its traditional atmosphere

The Shepheard Hotel is well positioned to maintain its luster well into the future

The Shepheard Hotel is a classic example of Cairo's world-renowned hospitality. Founded in 1841 by Samuel Shepheard, the hotel quickly became a favorite among polymaths, Egyptologists, and tourists due to its excellent management and convenient location in Cairo's European quarter. By 1857, the London News observed that “Perhaps in no hotel in the world do you find such an assembly of people of the rank and fashion from all countries as are found daily sitting down to the table d'hôte in the grand salon.” Business grew so fast during the first few years of operation that Mr. Shepheard had to take over an old palace adjacent to the building that once served as Napoleon's private quarters, which just added to the popularity and prestige of the property. The hotel later relocated into Garden City on the banks of the river Nile and, with a capacity of 300 rooms and suites, it is today one of the few hotels to boast a true historical heritage among the many that dot this prestigious district. The hotel's reputation convinced Adel O. Cherif to come out of retirement–after 33 years at Starwoods Hotels–to become an Assistant Vice President of E.G.O.T.H., the owner company, and the General Manager of the hotel. “When the owners approached me, I couldn't resist the temptation of the challenge: boosting the Shepheard's competitiveness for the 21st century, while maintaining its traditional atmosphere.”

The hotel's prime location, at walking distance form the Egyptian Museum, the Cairo Opera House, Khan El Khalili Bazar and the Citadel is a great asset, but Cherif asserts that the Shepheard's true uniqueness lies in the flair and details inherited from days past: “We are the only hotel in

“We are the only hotel in town that offers 43-square meter duplex suites…” town that offers 43-square meter duplex suites; nowadays, it would be financially unfeasible to build a hotel with such huge rooms!.” The duplex suites are popular among visitors from the Gulf, who are particularly fond of traveling with their families and appreciate the extra comfort that such spacious rooms offer. It's easy to see why the owners of the hotel picked Cherif as the right man to give the Shepheard a new competitive edge: his extensive experience in the business give him an uncommon ability to combine robust old school principles with modern www.leaderspress.com

management techniques into a leadership style that seems tailor-made for a hotel that seeks a balance between modernity and tradition. “I am an advocate of technology, but to learn the difference between medium-rare and well-done–there's no computerbased training that can match spending time in the kitchen!.” A good share of Cherif's time goes into talking to guests, asking them all kinds of questions about their experience in the hotel. This frist-hand information is the main input into his decision making process, and his most important tool to fine tune the hotel's operations, fitting them into a streamlined, customer-focused process. Cherif's leadership has paid off; during 2006 the average occupancy rate reached 76 percent. And while its average room rate increased US$11, “Shepheard still is the hotel that offers the best value for money in town.” Cherif is a seasoned cuisine enthusiast himself, and spent his good share of time in the kitchen during the early stages of his career. The gastronomic offer of the Shepheard is varied and is also of crucial importance in his strategy. His personal favorite is the “Asia House,” offering authentic Indian, Chinese, Thai, and Japanese dishes. Whatever your choice, Cherif guarantees that “in the Shepheard Hotel, you will feel the true charm of Cairo's history, with 21st century quality of service.”

Who’s Who - Egypt 2007

Rolling Out the Red Carpet Semiramis InterContinental

Nile Hilton

InterContinental Cairo Citystars

Michel Tourniaire, Director of Operations-Egypt & General Manager

Jean Pierre H. Mainardi, General Manager

Thierry Perrot, General Manager

Best Restaurants in Cairo

ince it opened in 1987, the Semiramis InterContinental has been one of Cairo's premier hotels. The hotel lobby and two of its restaurants are still being renovated, but renovations on three others on the second floor have been completed and they are now open to the public. Sabaya offers authentic Lebanese cuisine with contemporary décor and music, while The Bird Cage, with its exceptional Thai cuisine and intimate atmosphere, is exceptional. Live water features and the tantalizing aromas of Thailand will elevate you to a different world. The only restaurant overlooking the Nile is the Italian restaurant Pane Vino, which serves authentic Italian food and has the best pizza in town. If you want to dine at these restaurants, you will have to book a table, as they are very much in demand. One of the things that clearly stands out in this hotel is the fully-equipped 24-hour Business Centre. “We have the fastest Internet connection in town,” says Mr. Tourniaire. “Semiramis is a 70% business, 30% leisure hotel. We are proud of our concierge, as he knows the city better than anyone else. We can get you to places nobody else even knows about because we have been here a long time and have done our homework, so we can find those special spots for you. Training is very important to us and we educate our employees continuously to offer the best service possible.” 16

Most luxurious hotel in Cairo

ocated in the heart of Cairo, Nile Hilton has gained a strong reputation due to its unique location. Hilton was the first international hotel chain to be established in Egypt. Forty minutes from the airport and close to the pyramids, the hotel offers a gym, pool and tennis court. “Our Nile-view rooms allow for a sight of a 7-mile stretch of the Nile. You don't have this kind of view from any other hotel in Cairo. You can even see the Pyramids on a sunny day from our balconies,” says Mr. JeanPierre H. Mainardi, General Manager of Nile Hilton. The hotel is adjacent to the world-famous Egyptian Museum. It is within walking distance of the main business and shopping district. Besides its unbeatable view, the management is proud of its people, who are delivering excellent service. Nile Hilton has established an apprentice program to train local people and to empower its employees to deliver world-class cuisine and service to their guests. “We have an average of 920 employees. Half of them have been working with us for more than 25 years,” says Mr. Mainardi. The hotel specially caters to Gulf tourists by providing ethnic food that is geared towards their taste. “We have experienced a 17% growth in the number of guests coming from the Gulf during 2006, and I'm confident we will sustain these numbers during 2007” www.leaderspress.com

itystars Heliopolis Cairo is the first and largest integrated project of its kind in the Middle East. Citystars includes three hotels and 70,000 square meters of office space, 266 residential apartments, duplexes, and penthouses, as well as Star Care medical support and the largest shopping and entertainment centre in the Middle East. The International Exhibition Centre boasts 20,000 square meters. InterContinental Cairo Citystars offers an extensive range of dining options in its restaurants, bars, and entertainment venues. “This is not just a hotel, it is a concept,” says Mr. Thierry Perrot, who has been working for InterContinental Group for over 25 years. “The owner wanted to create a landmark. We have the largest ballroom in the Middle East at the moment. We also have the largest fitness club.” Major conventions are common in the hotel as no other hotel in town can accommodate that many people at one time. The hotel offers 18 versatile conference and banqueting rooms, with floor space ranging from 50 to 2,200 square meters. This is definitely the best family hotel in Cairo and offers the widest variety of entertainment, including luxurious spa treatments, 16 movie theaters, and 550 retail outlets to shop till you drop. In this setting, your family can unwind, engage in individual activities and then join each other to celebrate dinner.

Who’s Who - Egypt 2007

Cairo’s Top Hotel Managers Share their Views Four Seasons Cairo at the First Residence

Randy Shimabuku, General Manager

our Seasons Hotel Cairo at The First Residence was the first property under the Four Seasons name in the Middle East. “The owners built a fantastic property with great attention to detail,” says Mr. Shimabuku, General Manager, who has worked with Four Seasons for 19 years. “This hotel was truly a pioneering effort for us. I have been to 51 of our 74 properties, and I must say this hotel is particularly special. It is an oasis. When you go out in the hustle and bustle of Cairo and come back to something like this, you truly feel as if you are in heaven.” We absolutely agree with this. The hotel has a cozy, boutique atmosphere about it, which makes it special. As soon as you enter the hotel you are greeted with a smile, and the exceptional service continues throughout your stay. Four Seasons staff are trained to meet your every need. The marvelous spa and wellness center will help you unwind after a long day of sightseeing and shopping. The hotel offers a variety of restaurants that cater to different tastes. Mr. Shimabuku is excited about managing this spectacular Egyptian hotel and contributing to the growth of the economy. As he says, “We helped the industry by establishing a benchmark. Egypt's potential is limitless, not only in the luxury market but across the board. Our hotel is going into its eighth year of operation, and last year was our best.”

Four Seasons Cairo at Nile Plaza

Le Meridien Pyramids

Barry Curran, General Manager & Area Manager Resorts - Egypt

he eye-catching Le Méridien Pyramids Resort boasts unmatched views of the mystic, ancient majesty of the Giza Pyramids. A mere glance out your window reveals the secrets of one of the Seven Wonders of the World. Le Méridien Pyramids Resort Hotel is conveniently located within walking distance of Egypt's historic treasures, including the Giza Pyramids, the Sphinx, and other monumental sights. Conveniently, it's only a 15-minute drive from Cairo's central-city attractions. According to General Manager Mr. Courran, “Le Méridien Pyramids is the busiest, largest hotel in the area, with the market share to go along with it. The owners have decided to invest $40 million on top of an already very successful hotel, which will be underpinned by the new Grand Egyptian Museum coming in. This will bring in more business and ensure we are the dominant player in the area. The investment covers an additional 165 rooms and a total upgrade to five-star deluxe status, featuring a new spa, leisure areas, restaurants, pools, and banquet halls, which effectively create a brand-new hotel.” With a first-class choice of restaurants and cuisines, wireless connectivity and magnificent swimming pool and spa amenities, Le Méridien Pyramids is the ideal place to explore the ancient mysteries of Egypt. Le Méridien Pyramids has an exquisitely designed swimming pool, and two floodlit tennis courts. www.leaderspress.com

Olivier Masson, General Manager

he success of Four Seasons in Egypt is symbolized by the presence of its second hotel in Cairo. Four Seasons Hotel Cairo at Nile Plaza has only been open for two years, but has been extremely well received by the community. Its modern interior design with spacious rooms, seven restaurants and a central location, have made it just as popular as its predecessor. It's been a real success story. “Hesham Talaat Mostafa is a great owner and managing partner. He has great vision, tremendous willpower and eagerness to succeed,” says Masson. “The standards of Four Seasons cannot be matched by any other five-star hotel in Cairo. We are leading the market in the luxury sector. Egypt has been a budget destination for tourists for a while, but it is changing, as we have a lot to offer and there is no reason to be a budget destination any more. The average daily rate for a five-star hotel in Cairo has increased by up to US$20 just because of our entrance into the market. Now almost all hotels are doing major renovations because of us, as we are setting a new benchmark here,” says Masson. He points out that approximately 50% of the hotel's business comes from the Gulf and mainly from Saudi Arabia. “The Saudis are people of good taste; they are people of wealth. They are the people who frequent this hotel, the key to our success is being able to cater to them. We are continuing to grow in the region with more hotels opening soon.” Masson concludes. 17

Who’s Who - Egypt 2007

Synergy, Elegance, and World-Class Excellence Nile City Investments capitalizes on the synergy of first-class office space, an extraordinary shopping mall, and deluxe hospitality

ile City Investments was established in 1997 as a joint venture between Mr. Fahd Shobokshi and Orascom Group, with their first project being Nile City Towers office complex. This extremely popular facility is the largest office community in Egypt. Since its inception, Nile City Investments has also developed the Nile City Mall and is about to launch the Fairmont Nile City Hotel. “Through all of its endeavors, the most important goal of Nile City Investments is to create world-class facilities,” says Shanab. “We are immensely proud of our success to date, catering to the needs of multinational companies from the Gulf Region and the rest of the world.” He goes on to say that “Nile City Towers provides the same service and quality as any facility in London, New York, or Tokyo. It is an intelligent building, widely recognized by multi-national tenants as being among the very best in all of Egypt.” Fairmont Nile City The Fairmont Nile City Hotel will be located in the newly built third tower of the Nile City complex, bringing with it an internationally recognized reputation for elegance and luxury. “It is the perfect place for corporate travelers because it is so close to the business district and offers so many luxurious amenities,” says Shanab. “Fairmont Nile City is also a wonderfully elegant and convenient accommodation for the leisure traveler. From the hotel, visitors can soak in the marvelous view of the Nile and even see the pyramids off in the distance.” With a capacity of 574 luxury rooms on 25 floors with a total built up area of 60,000 sqm, the hotel will include four restaurants, two bars and lounges, a business centre, meeting rooms of dif18

Mr. Hisham L. Shanab, Executive General Manager of Nile City Investments, discusses the exceptional quality and elegance of Nile City Towers and the upcoming Fairmont Nile City Hotel

ferent sizes, a 360 person ballroom, and an outdoor swimming pool on the rooftop of the 24th floor. The hotel represents a total investment of approximately US$ 130 million. Nile City Investments entered into a joint venture with Fairmont Hotels and Resorts, who holds a 15% interest in the property. Another 15% is owned by the Dubai-based Kingdom Hotels Investments, a leading hotel and resort investment company focused on the luxury segments in the Middle East and Africa. With its luxurious appointments, convenient location, and service beyond compare, Fairmont Nile City is

"Nile City Towers provides the same service and quality as any facility in London, New York, or Tokyo..." positioned to be an integral part of Egypt's bright future in premium tourism and hotels. The brand is strong and much in demand, as evidenced by the extreme success of the Fairmont Dubai. “Our guests have come to expect only the best from the Fairmont brand, and the Fairmont Dubai succeeded to the point of being one of the best hotels in the world,” says Shanab. “We bring that same reputation and excellence to Egypt in the form of Fairmont Nile City.” www.leaderspress.com

Tourism Strategy Egypt has set forth an ambitious goal for the country's tourism industry, and Nile City Investments is poised to make significant contributions to that goal. “Egypt is aiming for 14 million tourists by 2011, and we are contributing to that goal with our focus on the top-tier market of premium-end tourists,” says Shanab. “Our business model is built on maintaining the highest level of international standards, which fits quite nicely with Egypt's greater overall goal.” An underlying part of Egypt's tourism strategy is to develop that industry in parallel with the goal of developing Cairo as a regional business hub. “We have great momentum in place already,” says Shanab, “and now we can seize this opportunity to make Nile City Towers and Fairmont Nile City important contributors to the well being of Cairo's people and the entire nation of Egypt.” Background Mr. Hisham L. Shanab graduated from Ain Shams University in 1982 with a degree in architecture, after which he worked for Dar Al Handasah architectural firm. After a spell with Perkins & Will in Chicago, he decided to capitalize on his experience and open a private practice. In November 2000 he became the General Manager of Nile City Investments thanks to a chance meeting with Naguib Sawiris and Fahd Shobokshi. In August 2006 he was appointed Executive General Manager, a position he has occupied since then.

Who’s Who - Egypt 2007

When Business and Pleasure Intertwine The Sheraton Cairo Hotel, Towers and Casino, blends luxurious comfort and top business facilities

he Sheraton Cairo Hotel, Towers & Casino is ideally located in the heart of Cairo, with suites that overlook the City, the magical River Nile & the Pyramids. Patrons can find magnificent views from the hotel's 650 deluxe rooms, including 113 suites. With its matchless dining and recreational facilities, along with its professional business and travel services, the hotel satisfies the needs of the most discerning guests. Your dining options are endless, consisting of Oriental, Italian, Lebanese, Japanese, and Moroccan cuisines complemented by three bars, all of which are designed to meet every taste and occasion. Furthermore, the exclusive and luxurious atmosphere of the Tower's Lounge pampers guests with snacks and refreshments all day in an elegant

setting. Recreational facilities include the Xanadu Health Club, serving as one of the best places in Cairo to work out with world-class spa facilities, and the impressive “Le Mirage" outdoor swimming pool completing the rejuvenation experience. After a fun-filled day, guests can cap it all off by trying their luck at Blackjack or the slots in the dazzling casino, or decide to take a short walk to the Cairo Opera House, Egyptian Museum, or Cairo shopping centres. Mr. Ibrahim Fahmy, General Manager, comments about the importance of the Gulf market for the hotel: “Customers of Sheraton Cairo Hotel, Towers & Casino are a mixture of discerning families looking for a pleasant atmosphere and delicious cuisine, and businessmen looking for world-class facilities. Needless to say, both types are

www.leaderspress.com

Fahmy surpasses the expectations of Gulf customers at Sheraton Cairo Hotel, Towers & Casino

characteristic of the Gulf region, and they know we are particularly capable of delivering what they want.” Additional services include a fully equipped Business Centre, 24-hour limo service, banquet and conference facilities, shopping arcades, and a beauty salon. Whether you are in Cairo for business or pleasure, the Sheraton Cairo Hotel, Towers & Casino is an optimal choice.

Who’s Who - Egypt 2007

Taking Cairo's Charm to a New Level Talisman Hotel de Charme brings true boutique hospitality to Cairo and Egypt

any believe that Cairo's charm is due to the richness of its contrasts. The chaotic and the peacefully mystical, the ancient and the modern, the beautiful and the appalling–all coexist in rare harmony, producing a unique form of sensual delight. Yet even the most seasoned Cairo connoisseurs will marvel at the calmness and sumptuousness of the Talisman hotel, hidden in the midst of bustling downtown Cairo. According to Mohamed Elayouty, Talisman's owner and General Manager, “The hotel's location is a unique advantage, not only for being a 10-minute walk from the Egyptian Museum and the souks of Khan el Khalili, but also for allowing our visitors to combine the experience of real-life, vibrant downtown Cairo, with Talisman's fantasylike, soothing atmosphere.” It's easy to see why Talisman has the reputation of being the only true boutique hotel in Cairo. Its 24 rooms and suites, are all fabulously decorated and extraordinarily comfortable, each

The dining room is exquisitely decorated with Egyptian arts and crafts: mashrabia chairs and sofas, mother of pearl marquetry consoles and dressers, Turkish Ottoman lustres, Persian carpets, original oil paintings by local artists, and antique Islamic silver. The library is cozy and well assorted. According to Elayouty, he was immediately seduced by the property when he first saw it; what sold him on the investment was the business opportunity of launching the boutique hotel concept in Egypt. He had always felt there was an unsatisfied niche of customers for this concept. Staying true to his business background–he holds an MBA from the University of San Diego, having spent

with a unique color scheme and theme. The opulent oriental atmosphere of the rooms is complemented by all the occidental modern conveniences.

most of his career in financial institutions–Elayouty spent six months studying the hotel's financials, its operations, and the possibilities for creating a boutique hotel chain that would

Mohamed Elayouty aims to take the boutique hotel concept from Cairo to the rest of Egypt

take the Talisman concept from Cairo to the rest of Egypt. “We plan to open a new hotel under the same name and concept in Alexandria next year. After that it will be Aswan, Luxor, and the Red Sea,” says Elayouty. He has focused most of his efforts during the last eight months on optimizing the hotel's management system to give it the professional edge it needs for supporting the birth of the Talisman network. Elayouty's intuition has so far proven right on target. “Our winter season has been extremely good, reaching almost 100 percent occupancy rates,” he says, pointing out that this is in great part due to an extremely loyal European clientele. There is more work to be done to attract a larger number of guests during the summer months, and here is where Elayouty sees great potential in the Gulf market, for which Egypt is a prime summer destination. “I was born and raised in Saudi Arabia, so winning over the Gulf customers is a very personal matter for me,” says Elayouty. With its unique blend of authenticity, exuberance, comfort, and quality of service, the Talisman seems well positioned for taking Cairo's unique charm to the rest of Egypt–and to a whole new level of sophistication.

Talisman Hotel de Charme 39 Talaat Harb Street, Cairo - Tel & Fax +20 2 393 94 31 Talisman_hoteldecharme@yahoo.fr - www.talisman-hotel.com 20

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Who’s Who - Egypt 2007

Reinventing Alexandria Foreign investment promises to boost the legendary city's international appeal Foreign direct investment Cleopatra and Mark Antony. The Pharos Lighthouse, one of the seven wonders of the ancient world. The Library of Alexandria, a celebrated center of learning in ancient times. Pompey's Pillar. The Roman Amphitheatre and underwater ruins. All of these have one important thing in common–they are part of the rich cultural heritage of Alexandria. Now, thanks to increases in foreign direct investment in this astonishing city, Alexandria is poised to become a leading vacation destination that com-

San Stefano has long been regarded as the summer capital of the Middle East bines luxury, hospitality, stunning landscapes, and an unmatched assortment of cultural and historic sites. San Stefano leads the way in the re-birth of Alexandria Just east of old Alexandria lies San Stefano, an area with a storied history as a playground for royals, tycoons, and movie stars. It has long been regarded as the summer capital of the Middle East, thanks to fresh sea breezes, sandy beaches, and spectacular Mediterranean views. The San Stefano project is designed specifically to revive those glamorous days, in great part by developing and expanding the links with the Gulf market for tourism. The Talaat Moustafa Group, led by chairman Hisham Talaat Moustafa, is the developer and driving force behind

Images by Richard Waite

the San Stefano project. “Egypt is doing a good job to attract foreign investors who look for good governance, efficient institutions, and a workforce with management and marketing skills,” notes Moustafa. “The Talaat Moustafa Group is actively working to reinforce this trend, revitalizing tourism and enhancing the trickle down effect of economic prosperity.” The Four Seasons Alexandria shines like a diamond “For the past 20 centuries Alexandria has been Egypt's main port and window to the outside world,” says Stephan Killinger, General Manager of the Four Seasons Alexandria at San Stefano. “The San Stefano project, headlined by the Four Seasons Alexandria, is part of a vitally important effort to increase foreign direct investment in Egypt and develop the economy to new levels of wealth and sustainability.” This world-class hotel, now confirming reservations for arrival from September 1, 2007, is unmatched in its comfort, elegance, and array of services and amenities. “It is an intimate enclave within the stately Grand Plaza shopping and residential complex,” says Killinger. “Our guests will indulge in elegant accomwww.leaderspress.com

modation, European spa treatments, terraced restaurants with fresh sea breezes, and more.” Arab tourism to Egypt rose dramatically last year. A combination of successful marketing and stellar destinations like the Four Seasons Alexandria are responsible for a large part of that growth, and will continue to be key factors in Egypt's burgeoning reputation as a holiday destination distinctly different from all others. “We have something other resorts simply can't offer,” notes Killinger. “No place else can visitors experience luxurious pampering right alongside some of the world's most important cultural sites and historic locations. This is a tremendous advantage that appeals strongly to tourists throughout the Gulf region and beyond.” Killinger goes on to say, ”What we are looking to do is build upon the mysticism that surrounds Alexandria and bring it back to the forefront of Egyptian tourism. We not only provide a world-class hotel but are also investing our efforts into creating Alexandria as a world-class destination.” The strategy is paying off handsomely, with partnerships and joint ventures with foreign investors on the rise throughout the city, raising the quality standards of Egyptian tourism. 21

Who’s Who - Egypt 2007

ENTREPRENEURIAL SHOWCASE

Off to a Strong Start Direct Travel embraces the challenge of entering the Egyptian car rental business–and plans to contribute to its transformation

hen top executives of multinational companies start leaving their highly-paid, secure jobs to launch their own businesses, you can be sure that the economy of a country is on the right track–entrepreneurial initiative is the essential element that a market economy needs for sustaining its growth in the long term. In early 2005, Hany El-Meshad, Chairman of Direct Travel, decided to quit his job as Marketing Manager of a top multinational company, letting go all the security and perks to jump into the wild world of entrepreneurship, launching his own car rental and travel services company: “Entrepreneurial life is particularly challenging In Cairo,” he says. The city wakes up at 4:00 am, meaning his working hours are practically around the clock, and there are well-established, multinational competitors in the market to deal with. But ElMeshad doesn't regret his decision for a second: “Even taking these factors into account, there has never been a better time to be an entrepreneur in Egypt. And we are proud to say that we have so far done a very good job in differentiating ourselves and gaining a substantial amount of loyal customers.” El-Meshad acknowledges that his 7-year long career in the multinational corporate world allowed him to hone his business skills, an asset that he fully utilizes now in his own company: “Those seven years gave me in-depth knowledge on the multinational way of dealing with customers, employees, and competitors. It was an excellent business school,” he asserts. The company started with a fleet of 35 vehicles, and today it has expanded to a total of 50. El-Meshad expects the fleet to grow to 100 vehicles by mid 2007, and by the beginning of next year, launching a limousine rental division

“There has never been a better time to be an entrepreneur in Egypt” and opening an office at the new Terminal II at Cairo airport. Offices in Sharm el-Sheikh and Hurghada are also planned for the medium term. The company has secured a solid number of corporate contracts with large multinational and local companies, and El-Meshad plans to further capitalize in his marketing savvy to offer them the possibility of advertising on some of his cars. “The concept has great potential in Egypt, as it allows to reduce rental fees to a nominal value, and there is a large segment of the market that we believe is very price-sensitive,” says El-Meshad. Seeing the concept in Frankfurt, Barcelona and other European cities where it is very popular, inspired ElMeshad to replicate it in Egypt: “We stand an excellent chance of doing a good job because of our solid knowhow in the advertising field. In fact, my marketing experience was in itself the main motivation for my interest in the car rental business–advertising can transform the car rental business in Egypt.” El-Meshad has no qualms when declaring that his long term objective is becoming the largest car rental company in Egypt, but he is convinced that growth is not an objective by itself–it will happen naturally as a consequence of delivering excellent customer service, and that's where his efforts are at the moment: “Based on the quality of service that we offer, I www.leaderspress.com

El-Meshad has no regrets for his departure from the corporate cocoon towards the entrepreneurial wilderness

would say that we are one of the best car rental companies in Egypt already,

“My marketing experienceinspired me to start this company–advertising can transform the car rental business in Egypt” and this is the main reason why we have been successful in this extremely competitive market. Our philosophy give service the highest priority, and we know that this initial stage is the right time to create an excellent service culture in our company.” 23

Whoâ&#x20AC;&#x2122;s Who - Egypt 2007

Boom times ahead as Egypt's FDI takes off Recent economic figures are the result of years of sustained reform efforts, says Helmy

e sat down with Taher Helmy, President of the American Chamber of Commerce in Egypt, Managing Partner of Baker & McKenzie's Cairo office, and long-time economic reform insider, for an open conversation on Egypt's current economic environment, its future potential, and the institutional framework that sustains it. Egypt's macroeconomic figures have been making headlines all over the world lately. How much of this success would you attribute to current economic reform efforts? Egypt is entering a phase of very fast economic growth. GDP grew 6.7 percent during the past fiscal year, with foreign direct investment (FDI) reaching over US$6 billion during the same period, and already surpassing US$6 billion in the first six months of the current fiscal year. That means we must be doing something right, something that has to do with the way we are managing the economy, and not only with the high levels of regional and global liquidity. Investment is pouring into Egypt from all over the world, from the US to the Gulf, from Europe to India and China. In 2006 we had great success stories like Gruppo Sanpaolo IMI buying 80% of the Bank of Alexandria for US$1.6 billion, nearly six times its estimated book value, and Amoun Pharmaceuticals selling a 93% stake to a consortium of international private equity investors for almost half a billion USD - one of the largest private equity transactions in Egyptian history. This diversity of the sources and targets of FDI is noteworthy, and, in my opinion, shows that Egypt is doing a good job earning the trust of the global business community. This, of course, has been largely due to the commitment and perform24

ance of Prime Minister Ahmed Nazif and his Cabinet, who are giving maximum priority to the issue of economic reform. Investors from the GCC region have been particularly enthusiastic about investing in Egypt over the past few years. How would you evaluate the sustainability of this enthusiasm? Investors from the GCC have been especially enthusiastic in real estate, where we have seen major Gulfbased developers like Emaar Real Estate, whose purchases on the North Coast and other locations across the country were over a billion US dollars. Significant amounts of private and public money being invested in infrastructure, from toll roads to power- generation plants to ports, airports, and previously neglected areas like railway transportation, will provide the backup for further urban development, and, therefore, real estate growth. So we are witnessing a cycle where investment in infrastructure boosts real estate growth, which in turn creates the incentive to invest more in infrastructure - and this cycle, in my opinion, will also help increase FDI figures in the future. If you add to this the strength of the recovery in other areas of the economy due to the fortunate policy guidelines being implemented, this cycle has the potential to become stronger - in tourism, Egyptian coasts will continue to attract investment to develop resorts and other projects; natural gas prowww.leaderspress.com

Helmy is confident of Egypt's recent economic take off, as it has been hard-earned through years of gradual institutional reform

duction and exports are reaching record highs; and the surge in our manufactured exports will continue to provide a strong incentive to expand

â&#x20AC;&#x153;Egypt's economic performance is not happening in an institutional vacuumâ&#x20AC;? industrial zones. Another key factor that contributes to the sustainability of our current FDI figures is that a large part of it is being directed to key services that provide the foundation of a strong market economy, such as telecommunications and information

Who’s Who - Egypt 2007

technology. Here, the purchase of the third mobile phone license by the UAE's Etisalat for US$2.9 billion was almost double the expected amount, which in itself says a lot about investors' confidence in Egypt. You mentioned Gulf investors' enthusiasm for the Egyptian real estate market, which is growing very fast. However, this growth has taken place mostly in the high-end segment of the market, with spectacular tourism, residential, and commercial developments taking place all over the country. What would be the next step to enhance the role of real estate growth in Egypt's economic development? I had the pleasure to work very closely with Hernando de Soto for a long time, during his studies of the informal economy in Egypt. In the late 1990s, a study made by the Egyptian Center for Economic Studies (ECES) in close cooperation with the Hernando de Soto Institute of Liberty and Democracy, estimated that the total value of unregistered property in Egypt was approximately US$240 billion. The challenge lies in creating an institutional framework that facilitates the registration of all this property, much of which is owned by the poorest and most disadvantaged members of society. This would turn these properties into “live capital,” that is, assets that can be used as collateral for bank loans and to improve and build homes, and, most importantly, start new businesses. A fully functioning housing market is definitely the key to a dynamic market economy, and important measures have already been implemented to reduce the cost and simplify procedures of property registration. Although much work still needs to be done to fully realize the potential of unregistered property, it is very encouraging to see that the current government has mortgage finance reform at the top of its economic agenda. What would you say are the most important challenges that need to be addressed to sustain the momentum in economic growth? Our most important economic chal-

lenge is to create work opportunities for 700,000 new entrants in the job market every year. We need sustainability and consistent performance in the economy to achieve this. In my opinion, we have to sustain our cur-

“Important measures have been implemented to reduce the cost of property registration” rent economic growth rates for the next 10 years. And what makes me optimistic about Egypt's capacity for achieving this is that the economic figures of late are not purely the result of short-term events. Our economic performance is not happening in an institutional vacuum; quite the contrary, we have been working on economic reform for a long time, since the mid 1970s, when we first opened up the economy for the private sector. Back then the government controlled most of the economy; now the situation is the opposite, with the private sector controlling the bulk of economic activity. Our second historical threshold came in the late 1980s and early 1990s, when we introduced the concept of privatization. I actually participated in the drafting of Public Enterprise Law, Law 203. This law provided the framework for staging an important turning point, the privatization of government-owned companies to private investors for better management, expansion, and performance. Another milestone in the early 1990s was the adoption of a Capital Markets Law that created the base for our stock market, and other key areas of our capital markets. During the mid 1990's we also witnessed increased participation from the private sector in infrastructure projects previously reserved for the government, in areas such as telecom, power plants, and seaports. And, more recently, Telecom www.leaderspress.com

Egypt issued the largest IPO in the country's history. This had a tremendous impact on the international perception of Egypt's economic strength and commitment to market reforms. So, the process of transitioning to a market economy led by the private sector has been successful, but of course, it has taken time. It is simply not possible to go from a centrally planned economy to a market economy overnight - it is necessary to change institutions and the relationship between the private sector and the government. Today, the government has a more regulatory and supervisory role in the economy and is definitely giving up its role as owner-manager of companies. A good example is the creation of very efficient institutions, such as the National Telecommunications Regulation Authority (NTRA), and the recently established Egyptian Competition Authority. Our country is now in the process of modifying its constitution to reflect this transition from a centrally planned economy to a market-oriented one. This reflects the country's long-term commitment to an economic model that is now a national reality. You have been an important advocate of tax reform in Egypt. How satisfied are you with the progress achieved in this area so far? I have always been an advocate of reducing tax rates, and implementing a flat corporate tax rate. This is a prime example of the improved dialogue and understanding between the private and public sectors in Egypt. The current cabinet had the determination to implement the flat corporate tax rate regime, the beauty of which is that it actually increases tax revenues, as has been the case in Egypt, because it dramatically simplifies taxfiling procedures and increases the tax base. It was implemented in conjunction with the elimination of tax holidays and exemptions, and an amnesty with regards to past tax filings. The result is that we have witnessed a dramatic increase in the number of businesses filing their taxes, and, of course, this has also contributed to the dramatic increase in private investment the country has enjoyed.

Who’s Who - Egypt 2007

The Vantage Point of Mountain View An innovative player in Egypt's real estate market aims to set a new standard of luxury living–and the way it is marketed

Soliman's passionate vision allowed him to create a business model that balances luxury living and a strong sense of community

gypt's booming property market provides strong incentives for entrepreneurs to take real estate development to a new level of sophistication. Amr Soliman and his innovative Mountain View brand, under which he is marketing exceptionally successful real estate developments in New Cairo and Egypt's northern coast, is definitely a case in point. Soliman founded an architectural practice in 1989 under the name of Dar Almimaar, but his entrepreneurial spirit quickly translated into fast growth for his venture–by 2006 the company was incorporated under a holding structure embracing six daughter enterprises, and today only one of them is entirely focused on architecture, under the name of DMA. The construction and contracting arm of the group is DMC Contraction; IDRAK offers high quality interior design to residential and commercial clients, while CURVE is a full-service landscaping company. Furniture manufacturing is carried out by Maharat, and Comfort Innovations is the group's integrated real estate development and facility management company. An integral organization that benefits from the synergy of its component parts and fully utilizes the knowledge of almost 20 years of accumulated experience is a crucial element of success, but as Soliman points out, what matters the most is to articulate a vision that encompasses a coherent business philosophy, and making all stakeholders of the organization commit to it: “I have always believed that we are not in the business of developing projects–we are in the business of

developing brands,” says Soliman. The language used by management and employees at Comfort Innovations shows that this philosophy has permeated their hearts and minds - there is virtually no use for terms of engineering processes and projects. Instead, business and management terms are commonplace. “In terms of production and marketing, we envision real estate development as not different from a seamless manufacturing process,” Soliman asserts. Teamwork is another key value, with the design, marketing and sales teams identifying themselves with the attack players of a soccer team, while HR, finance and administration call themselves the “defenders.” "High caliber people are always welcome to our winning team," says Soliman. The Mountain View Results–luxury, uniqueness and sense of community When the integral structure and dynamic culture of Dar Almimaar Holding–coupled with Soliman's leadership philosophy focused on customer service and creativity–are understood, it is easy to see the Mountain View brand as his favorite brainchild. Launched in partnership with Al-Fozan Group of Saudi Arabia, Mountain View is bringing a sense of luxury, community and completeness to Egyptian real estate development. www.leaderspress.com

“Mountain View is delivering a never-seen-before standard of quality, uniqueness and refinement to the real estate market in Egypt,” says Soliman. “Our focus is on creating an environment based on elegance and moral

Amr Soliman's entrepreneurial strength results from a unique blend of business, engineering and architectural talents, plus almost 20 years of handson experience in real estate development values, where those who have sacrificed so much of their life to great achievement can finally enjoy the 27

Who’s Who - Egypt 2007

some getting underway as early as fall of 2007. Locations include Ras elHikma on the northern coast of Egypt, Sixth of October in Cairo and El Ein ElSukhna. The Mountain View Results–Investors

rewards and lifestyle they so richly deserve.” The first two projects developed under the Mountain View brand in Qattamia, New Cairo, sold out extremely fast. Soliman is sure that this is due to a few key success fac-

“I have always believed that we are not in the business of developing projects – we are in the business of developing brands and unique lifestyles” tors: "Our integrated approach, focus on long-term relationships with clients, our consistent level of service, and the strength of our brand." And the company is certainly not looking for quick sales to people who simply want to turn around and re-sell their property for a speedy profit–just the opposite, in fact. “We choose to work with people who will actually live in the villas and estates they purchase. This is the best way to build community values and the sense of quality and exclusiveness that is so important to those who deserve the reward of distinguished 28

living,” Says Soliman. Mountain View operates with a strong emphasis on selling to people who will actually live in the compounds, not to speculative investors. “Over 95% of our sales are to people who will in fact live in the homes they buy, which is crucial to get the feeling of community going from

The exceptional sales performance of Mountain View projects translates to exceptional financial performance, a fact that has not escaped the notice of Soliman and his shareholders. “Mountain View's financial performance has been extremely successful. The initial investment to establish the company was LE 28 million and in our first year alone we sold around LE 200 million worth of property before construction even started,” says Soliman. "After achieving great suc-

Mountain View: creating a strong sense of community from the very start

the start in the projects,” says Soliman. When asked why they have had such phenomenal success, Soliman answers quickly and confidently. “It is because we are different from everyone else. From our management structure to our marketing professionals to our strategic partners, everything we do is focused on fulfilling the Mountain View brand promise: ground-breaking standards of quality, exclusiveness, and community values.” Additional Mountain View developments are in the planning stages for launch over the next three years, with www.leaderspress.com

Strong community values are an essential part of the unique Mountain View lifestyle cess in the sales and marketing of our two initial projects in Qattamia, the Mountain View brand has been able to

Who’s Who - Egypt 2007

act as a platform to launch other projects in Ras el-Hikma and El Ein ElSukhna, which will allow us to achieve one billion Egyptian pounds in sales in the medium term." With results like these, it's easy to see why the company's value has increased dramatically within the first year of launching Mountain View. Shareholders are brimming with enthusiasm at the prospects for the future, and so are other potential investors from throughout the Gulf region. Looking Ahead: The Future Of Mountain View and Dar Almimaar Holding Mountain View properties currently cater to the needs of wealthy customers in search of an exceptionally luxurious lifestyle in an environment with strong community values. In the coming years, their portfolio of properties will expand to different segments of the real estate market as well. “Today we are exclusively focused on the A+ customer. Our developments are all in prime locations and targeted to high-income families,” says Soliman. “As we grow we will launch new projects aimed at the A, B, and C1 socioeconomic segments, and of course, these projects will be approached with the same proven Mountain View philosophy. We pay careful attention to our customers' needs and wants through exhaustive market research, and our absolute commitment to quality.” With regards as to how Soliman sees the future of Dar Almimaar evolv-

Mountain View–Our Critical Success Factors Our integrated approach Our focus on building longterm relationships with our clients Our consistent level of professional services, based on wide local market knowledge Our capacity for innovation The strength of our financial results–achieving a positive return on investment

ing, he shows no doubt when asserting that “Our objective in the coming years is to become the benchmark in the development management industry in Egypt. And once we make the most of our roots in Egypt, we will expand internationally within the region.” And with the real estate market in Egypt becoming highly competitive, he asserts that in order to succeed, "Change is the key. Differentiation stems from being innovative, understanding the economics of real estate, shortening the sales cycle, and improving project management skills." For achieving these ambitious objectives, Soliman has in mind teaming up with new investors that help

him fuel the growth of Dar Almimaar. In this sense, he goes on to emphasize another key strength of the company: its professional governance structure ensures complete transparency for shareholders. This means that the right components are already in place to allow the company to tap into financial markets in an efficient way when the right time arrives. “Unlike many companies in Egypt that have a closed, familial ownership, we are absolutely open for conversations regarding partnerships, joint ventures and other forms of cooperation,” says Soliman. “We are always interested in talking to potential

First-year sales were LE 200 million in Qattamia, and extending the Mountain View brand to Ras elHikma and El Ein El-Sukhna will increase the figure to LE 1 billion investors whose values and goals integrate well with ours.” On a final note, Soliman reflects upon the challenges that his company will face in the future in order to keep the strong track record of success he has achieved so far, and how to make the most out of these challenges: "Fierce competition at all levels of our industry will definitely change the market shares of the key players. More than ever, we need to stay focused on exceeding customers' expectations, embrace uncertainty in every aspect of our business, and recruiting and retaining the highest caliber of people."

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Who’s Who - Egypt 2007

Building the foundations of Egypt's success By positioning itself as the partner of choice, Samcrete aims to satisfy the most demanding requirements of foreign developers

s one of Egypt's oldest and leading private contractors, Samcrete has been operating in the country since 1963, when it started building largeinfrastructure projects, such as military airports, fortifications, roads, and bridges. The company's breadth of activities is so comprehensive that there are few types of projects it hasn't covered at some stage of its development, making it a truly knowledgeable player in Egypt's construction market, and its related industries and services. In the Seventies, when the country embraced the Open-door Policy, Samcrete also participated in further expanding Egypt's infrastructure. Among its key projects during those years was the Kafr El Zyat-Damanhour Highway, the Damieta Dam, as well as building several new urban community infrastructures. During the Eighties and Nineties the firm played a role in developing major national projects, such as the Greater Cairo Sewage Project, Dr. Al Fouad Hospital, and Abou El Gharadik Airport. The company's other areas of activity include power plants, housing, education facilities, health, hotels, religious buildings, renovation, internal decoration, and landscaping. Samcrete is part of a larger family of companies under the umbrella of SONID Holding, a conglomerate that, in addition to engineering and construction, is active in advertising, FMCGs, automotive distribution, and tourism. The company slowly started expanding the scope of its operations, and today has a fully integrated division–Samcrete Building Systems–in 30

Saad capitalizes on Samcrete’s historical achievements, high-caliber projects and human resources

charge of producing and commercializing building materials. It also provides construction management services through Costain-Samcrete Project Management, a joint venture with UKbased international engineering and construction group Costain, which has a reputation for technical excellence based on more than 140 years of experience. Samcrete's reputation as the partner of choice for multinational companies operating in Egypt's civil construction and real-estate market is well established, and with foreign investment at record highs, the company has been able to capitalize fully on it. As Chairman Karim Sami Saad points out, this is clearly seen in several of the company's current flagship projects: “We develop our projects according to the highest international standards, which can be seen by the fact that our 'Pyramid Heights' office park currently being developed, caters for multinational clients such as IBM, Xerox, and KPMG. At the moment, we are the only local service providers for Emaar in Egypt, and our joint-venture project with Samsung for the construction of the new American University in Cairo (AUC) is currently the largest building project in Egypt. The new AUC campus demands an especially high level of quality, design, and complexity management, to the extent that Samsung claims the project is more demanding and complex than the Burj Dubai develwww.leaderspress.com

opment in Dubai, which is also being carried out by them,” he says. Other key projects executed by Samsung Corporation, besides Burj Dubai, are the world's tallest building, the 92-storey twin towers in Kuala Lumpur, Malaysia. The construction group was the first in Korea to obtain

“The new AUC campus demands an especially high level of quality, design, and complexity management” ISO 14001 certification for all construction operations. Samcrete's projects Located on a plateau overlooking the Giza pyramids, Pyramids Heights is an exclusive, multi-purpose complex, offering secluded residential and business addresses, along with a five-star hotel. It is a very good example of the trend within Cairo during the past few

Who’s Who - Egypt 2007

years of building ultra-modern communities that testify to Egypt's increasing integration with the global economy. The site where the project stands was originally planned as a quarry for mining limestone, but after reflecting on the direction Egypt is taking as an increasingly important player in the region and the global economy, Saad and his team decided the land had the potential of a higher value-added use. The vision started to take shape, and today the project's business park hosts the offices of companies such as IBM, KPMG, Bticino, and Xerox. Designed by Dar Al-Hadasah and Perkins & Will, it comprises a cluster of low-rise office buildings equipped with all the services and facilities multinational corporations require. The project's accessibility from Cairo's main districts–about 10 minutes from Lebanon Square, 15 minutes from Maadi, and five minutes from the Ring Road–add to its business appeal. And the beautiful scenery, combined with mild weather and Cairo's purest quality of air, make it an ideal residential community. Far from being a closed compound within an underdeveloped area, the project's

“I feel a figure close to 20 or 30 million tourists for Egypt is attainable in the medium term” neighborhood houses a number of fivestar hotels, hypermarkets and shopping outlets, schools and universities, as well as the industrial and business areas of Abu Rawash and 6th of October. AUC's new campus will be located in the planned community of New Cairo, a development comprising 46,000 acres of land, with a projected population of 2.5 million people. It is designed to be a predominantly middle-to-highincome residential community, with schools, cultural facilities, commercial enterprises, government agencies, hotels, open spaces, parks, and the AUC New Campus at its center. Samcrete's contribution to building

Pyramids Heights Project Fact Sheet Location: On a plateau overlooking the Giza pyramids and the Cairo-Alexandria Desert Road, 8 km away from the pyramids area, adjacent to the protectorate of Elhassana Dome, and 4 km from the upcoming Grand Egyptian Museum. Weather: Average annual air temperature is 19.9 °C and average humidity is 68%. Accessibility: 10 minutes from Lebanon Square, 15 minutes from Maadi and five minutes from the Ring Road. Primary sectors: Business park, hotel and conference center, residential and diplomatic compound, cultural, entertainment and shopping plaza. Design and Planning: Dar Al-Hadasah and Perkins & Will. Key Tenants: IBM, KPMG, Bticino, and Xerox

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AUC's new campus has a special significance, given the central role that the company plays in developing the precious human capital it has been able to accumulate over the long history of its operations in Egypt. According to Saad, the necessity to invest heavily in Samcrete's people will only increase in the future, as the company keeps pace with the rapid expansion into modern, state-of-the-art development projects. “We embrace the responsibility of developing our workforce,” he says, “and we try to provide challenging and fulfilling career opportunities to jobmarket entrants. In the end, it is the initiative of local and foreign companies in the industry that will fill the gap created by the explosion in demand for human capital.” Riding the tourism wave Samcrete's next steps are geared towards further increasing its activities in tourism, a sector where they see major potential in the near future. “If you look in the area, you won't find many countries as capable of fulfilling the growing global demand for tourism,” says Saad. “Egypt has already reached the mark of nine million tourists per year, and I feel a figure close to 20 or 30 million is attainable in the medium term. We are at a stage where all the hard factors, such as infrastructure and real estate development, are mostly available in our country, and now the only area that needs to be developed further is human resources. With a concerted effort from the private and public sectors in this regard, the equation will soon be complete.” Samcrete's joint venture with German hotel management company Steigenberger Hotels AG, gives the company the rights to operate in the Middle East. Bringing such an exclusive operator out of its main area of concentration in Central Europe will enable Samcrete to leverage its renowned service and experience. “We have launched our first venture in Hurghada with the Steigenberger Al Dau Beach Hotel, a five-star location that hosted the Ms. Germany competition. This was the first time the event was held outside Germany. We believe decent quality three- and four-star operators are needed, and it is a segment we can cater for in the near future.” 31

Who’s Who - Egypt 2007

Egyptian Champion in the Gulf Makes a Strong Homecoming

With a history in the region that goes back to 1954, Mohamed El-M. Hegazy and his firm have become major players in the GCC

A. Moez & Moh. Hegazy is eager to increase its operations in Egypt, accompanied by its well-established client list in the Gulf

bdel Moez Hegazy and Mohammed Hegazy established the company A. Moez & Moh. Hegazy in Cairo in 1954 as an integral architectural and engineering consultancy offering a wide range of services, which included conceptual and schematic design, and due diligence and turnkey jobs. By 1968 the firm had established a branch in Dubai to address the UAE market's thriving construction sector, which lacked the qualified developers needed to fulfill the growing demand at the time. Over the next two decades, A. Moez & Moh.

Featured Projects of A. Moez & Moh. Hegazy • Jumeirah Mosque • Sheikh Mohammed bin Rashed's Royal Palace • The Kempinski Ajman • The world’s second-largest mosque, commissioned by President Ali Abdullah Saleh of Yemen, currently in construction • Carrefour Egypt

Hegazy saw tremendous growth in its GCC operations, profiting mainly from the booming local oil industry. Today, the UAE's economy is radically different, and the competitive environment in virtually every area is much more intense, but as VicePresident Ibrahim Hegazy points out, they are as optimistic about future prospects in the Gulf as they were 34

back then: “We fully expect to maintain our growth momentum as we approach our 40th anniversary of operations within the Gulf region. We are particularly optimistic about the potential of emerging markets such as Doha and Abu Dhabi over the next three to five years.” The firm's status as a major player in the Gulf is evidenced by the projects it carries under its belt, the most renowned of which are the Jumeirah Mosque, Sheikh Mohammed bin Rashed's Royal Palace, The Kempinski Ajman, and what will soon become the world's second-largest mosque, commissioned by President Ali Abdullah Saleh of Yemen, which is currently in the final stages of construction. But what makes this point in the company's history particularly compelling is its renewed interest in Egypt: “With the changes occurring in the local market, we see tremendous opportunity to leverage our skills and experience, and bring our client list from the Gulf back to Egypt,” says Hegazy. During the past 10 years, several factors have prevented Hegazy from making a strong commitment towards expanding its operations in Egypt, at the expense of the Gulf's secure, booming markets. The hospitality and commercial segments, where the firm is most experienced, were stagnant; quality standards of local contractors were far below international levels, and there was a general unavailability of building materials. But, as Hegazy points out, “These problems have been addressed over the past few www.leaderspress.com

years by the enhancement of the local supply chain and the development of human resources. These two factors will still be challenged when dealing with the capacity and efficiency of contractors serving multinational companies, but I believe the new busi-

“We see tremendous opportunity to leverage our skills and experience, and bring our client list from the Gulf back to Egypt” ness environment is encouraging enough even when factoring in these frictions that will take some more time to disappear.” Also, the legal framework has progressed so much there is a completely new level of confidence among investors. Looking back in time,

Who’s Who - Egypt 2007

Hegazy makes it a personal challenge to get the message of Egypt's renewed business environment across to the Gulf

Hegazy points out that, “A simple permit could take six months to a year to obtain in many cases, so we would have to use our local knowledge of the market to read between the lines and convince investors to look at the overall benefits. But when going strictly by the book, many projects would never take off due to the sheer lack of transparency.” Again, the change in this field has been radical: “In terms of bureaucracy, we have seen a tremendous reduction in the lead time needed to get a project up and running during the past 10 years. Also, with regards to building and labor laws, things have steadily improved, and the trend looks set to continue on the upside. There is still a misperception of Egypt in this sense, and we are

working hard getting the message across to investors, making them realize that the country is now in a truly new era.” Judging by its results, Hegazy's efforts are bearing fruit: “From 1995 we started collecting data for one of our major clients, the Al Futtaim Group, for the Carrefour Egypt project. This shows we spent a long time building a case to convince them to enter the market–the process took nearly five years. But, ultimately, the Carrefour project marked our big return to the Egyptian market, and has served as a definitive confidence booster for other very high-profile developers like Emaar and Damac, with whom we are currently in conver-

About Ibrahim Hegazy: Mr. Hegazy graduated from The American University of Cairo in 1992 after participating in the university's first-ever project management program. He worked in the United Kingdom and Italy as a project manager, after which he joined A. Moez & Moh. Hegazy, where he specializes in design and site supervision.

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“We fully expect to maintain our growth momentum as we approach our 40th anniversary of operations within the Gulf region” sations.” In Hegazy's view, the crucial step Egypt still needs to take is in the field of macro-planning. He reckons that now is the right time to launch such initiatives: “We still don't have a global strategy, and in order to keep investors coming, you need long- term vision and coordination, from infrastructure development all the way to urban planning. With the increased collaboration we are seeing between the public and private sectors, the time is right to launch and coordinate a master plan that will create a cohesive strategy for the boom we are bound to see in the next couple of years.”

Who’s Who - Egypt 2007

Al Ahly Real Estate Embraces Opportunities in the Gulf The strategic role of the GCC region in the company's plans is today stronger than ever

l Ahly Real Estate has a long and notable history in the Egyptian real estate market. They have led development of nearly every type of real estate project you might imagine, weathering both the good and the bad times in the Egyptian marketplace. “The company grew quickly from the start, but during the severe economic crash of the late 1990's we were hit hard,” says Sabbour. “We were basically out of business from 1998 to 2003.” Everything changed in late 2003, when the economy took off and started growing again. Having lived through the hardships of that time gives Ahmed Sabbour and Al Ahly Real Estate a unique authority to be optimistic for the future. The Golden Middle Income According to Sabbour, one of Egypt's strongest advantages as an emerging real estate market lies in the growing middle income segment of its population. “In the long term the middle income segment represents a much more stable line of business than the high end of the market, which I believe is going to become saturated at a not too distant point in the future.” The Ministry of Housing has been crucial in making the middle market attractive to investors. “In my opinion, they came up with some brilliant ideas that enable private investors to acquire land for middle-income-targeted developments, on very favorable terms.” Investors throughout the Gulf 36

Eng. Ahmed Sabbour, Managing Director of Al Ahly Real Estate, is open for talks with investors for alliances and partnerships

are taking note, and Al Ahly is currently in talks with several of them for business possibilities in this segment of the market. Also, a prominent North American company specialized in building budget housing approached Al Ahly recently to talk about potential areas of cooperation. Sabbour goes on to point out that although profit margins are lower in the middle market, the long-term sustainability of that line of business makes it extremely attractive. The large numers of Egyptians living in the Gulf is one of the key targets for Al Ahly: “Egyptians in the Gulf are eager to buy property in Egypt because they are earning higher incomes than at home, and want to repeat in Egypt the financial gains they realized from buying property in Dubai and other GCC markets,” says Sabbour. High-caliber shareholders are the foundation of Al Ahly Real Estate An underlying reason for Al Ahly Real Estate's leading position in Egypt is the high caliber of its shareholders, among them the National Bank of Egypt. The addition of a partnership with the Sharbatly family from Saudi Arabia has the company poised to market Egyptian properties aggressively and successfully throughout the Gulf market. Alliances and partnerships continwww.leaderspress.com

ue to be a high priority for Al Ahly. “Many other large and reputable companies from the Gulf have approached us, and we are in very advanced conversations with several of them for

About Eng. Ahmed Sabbour Ahmed Sabbour is the managing director of Al Ahly Real Estate Development Co. He earned an engineering degree from the University of Southern California in the United States, and then returned to Egypt to work with his father, Eng. Hussein F. Sabbour, Chairman of the company. Al Ahly was born as a partnership between the Sabbour family and the National Bank of Egypt. launching projects together,” says Sabbour. “I am approached at least once a week by Gulf investors both large and small, so there is plenty of opportunity.” With their history, expertise, and array of properties in their portfolio, Al Ahly Real Estate is leading the way toward a profitable future in Egyptian real estate development.

Whoâ&#x20AC;&#x2122;s Who - Egypt 2007

Regulating for Change The Mortgage Finance Authority is responsible for regulating Egypt's mortgage finance market, a business that is very much in its infancy but with the potential to change the fabric of the country's economy

ince accepting the role at the helm of the Mortgage Finance Authority (MFA) in 2005, Mr. Saleh has faced an ongoing challenge to change perceptions and kick start the growth in mortgage business that the legislation of 2001 was supposed to effect. Mr. Saleh has 27 years of experience in private banking to draw from, but has had to learn

Property registration costs have been reduced to 3% of the property value, with a cap of LE2,000 quickly to manage the intricacies of dealing with government practice, market expectations, and in particular, the scepticism of many consumers for whom the prospect of financing the purchase of their own home still seems inconceivable. Contributing to solve the housing problem One of the greatest current challenges for the Egyptian government is to fulfil its promise to provide appropriate housing for its growing population, and the establishment of a mortgage sector that could make the purchase of property affordable to the majority of Egyptians is one of the cornerstones 38

Saleh is driving the initiative to facilitate the development of mortgage business and boost the numbers of owner-occupiers

on which current housing development policy is based. Presently, mortgage finance in Egypt is small compared to western countries or the Gulf. It represents less than a half of one percent of Egyptian GDP, even though the market grew rapidly in 2006 after four years of stagnation. The MFA was established in 2001 by the Mortgage Finance Law. The legislation aimed to address the key obstacles to developing the housing market through mortgage provision, and the MFA has addressed the key issues that have been standing in the way of enabling finance companies to provide mortgage facilities. Property Registration One of the fundamental challenges facing the market is the issue of property registration. The registration of property in Egypt is far from widespread, but is essential in order to allow mortgage finance companies to set up an agreement with the borrower that gives companies a realistic expectation of recouping their loans in the event of a default. The essence of a mortgage agreement is, of course, that the property being bought is offered as a collateral against a default on the loan. But without legal registration of the property, there is no prospect of the financier asserting his legal rights, and hence the risk is very high for www.leaderspress.com

providers. The fact that at least 80% of property in Egypt is not legally registered, was a major stumbling block. This problem has been addressed by government legislation that has eased the process of property registration, as well as reducing the cost to 3% of the property value, with a cap of LE2,000. Another limiting factor on the supply side has been the availability of reliable credit information. In all established mortgage finance markets, lenders base their lending criteria on information about the applicant's credit history, and the likelihood that they will honour the repayment obligations. â&#x20AC;&#x153;Estealamâ&#x20AC;? is the first private sector credit bureau to be estab-

Changing consumer's perceptions is also a challenge lished in Egypt, and is helping to bridge the information gap that has been a major disincentive to investors. Selling the benefits to consumers On the demand side, the MFA has been proactive in selling the benefits

Who’s Who - Egypt 2007

“We are working on getting more information out, in a clear and simple format”

commitments. Another important tool in MFA's portfolio is the provision of refinancing facilities for mortgage providers. The government, in co-operation with private financiers, has set up the Egyptian Company for Mortgage Refinancing, which holds LE200 million to enable mortgage providers to refinance their existing mortgage business, and hence to extend their lending capacity.

of mortgage facilities to potential customers. For large numbers of Egyptians, the prospect of owning a home has been a remote one for many years, and not surprisingly, many consumers are sceptical about the prospect of paying for their purchase over a typical term of 20 years. In part, this reticence of Egyptian consumers is based on real economic factors–Interest rates are still relatively high in Egypt, meaning that a twenty-year mortgage term can imply that a buyer ends up paying as much as four times the initial purchase price. Help is at hand for buyers on low wages however, in the form of government funded cash subsidies, which can reduce costs by up to 15% for single buyers earning less than LE12,000 per year, or families with combined incomes of less than LE18,000 per year. The government sees the subsidy as a key tool in honouring its commitment to build 500,000 housing units for low earners every year for the next six years. Changing consumer's perceptions is also a challenge for the sector, and the MFA is managing a major public awareness advertising campaign, following disappointment with the way in which the initiatives had been portrayed in the media. “The media initially presented the law in a very complicated manner," explains Saleh. "We are trying to address this by getting more information out, in a clear and simple format." On the technical education front, MFA has been rolling out initiatives to provide staff training, and raise the professional standards of the sector. The MFA has licensed over 200 mortgage brokers and 80 appraisers, in order to ensure that buyers can be confident about receiving reliable information and guidance about their

Foreign investors Now that the mortgage market is showing rapid growth, albeit from a relatively low starting point, it is anticipated that the amount of business will quickly be boosted by foreign banks and financiers, who are showing very strong interest. Amlak Finance, the largest publicly listed Islamic home finance company, has already established a base in Egypt, and as the company's CEO, Shahli Akram Juma explained, the market conditions are now very attractive for established businesses: “Egypt's reg-

“We believe the MFA has now completed the right set-up for the market, and that it has the means and tools to protect the rights of all stakeholders” ulatory reforms in the real estate sector, and in particular the institutional framework created by the Mortgage Finance Authority are at the forefront in the region. We truly feel that the public authorities in Egypt understand what it takes to create a solid mortgage market.” Amlak is the first provider in Egypt to offer home finance in accordance with Sharia'a www.leaderspress.com

principles, and Juma expects that others will follow: “It is extremely important for government and companies to ensure that the momentum is sus-

The MFA has licensed over 200 mortgage brokers and 80 appraisers, to ensure buyers about receiving quality information and guidance tained, and that Amlak is just the start of things to come by encouraging other investors to enter the market in order to introduce fresh ideas and solutions.” Mohamed Abdalla, President of Coldwell Banker Middle East, also expresses his optimism about the future of the market, “due to many factors, such as the improvement in the economy since the inception of the new governmental cabinet. For the first time we have a truly business-oriented cabinet and sustained stability in the currency, and it has also helped to count with the tremendous liquidity in the Gulf, the introduction of the new cities around Cairo and the government setting the infrastructures for these great cities, for instance, the city of Six of October, which is as big as Cairo altogether.” As confidence grows among regional financiers, and Egyptian consumers adapt to the concept of mortgages, Mr. Saleh is firmly of the view that the right conditions have been established for the market to realize its undoubted potential: “We believe the MFA has now completed the right set-up for the market, and that it has the means and tools to protect the rights of all stakeholders. It is the right time for mortgage financing to move forward.” 39

Who’s Who - Egypt 2007

How Gulf investors are bringing real power to the people Amlak Finance, the largest publicly listed Islamic home finance company, launches its operations in Egypt

he massive amounts of money Gulf investors have been pouring into the Egyptian real estate market over the past few years give us plenty of valid reasons to celebrate. While most of the developments being launched by GCC-based real estate giants are luxurious tourism and residential projects catering to the highest income earners, their multiplier effect on the economy is tremendous. Through job creation, these projects will end up significantly benefiting the population's lower-income groups. This is the most basic mechanism by which an economy based on free market principles transforms the profitseeking endeavors of investors into concrete benefits for society. Amlak Finance's arrival in Egypt symbolizes a deeper, more direct way in which private investment can contribute to economic development. By catalyzing the creation of a mortgage market in Egypt, the company is poised to make a crucial contribution to one of the nation's most important social objectives–to empower a large proportion of middle- and lowerincome Egyptian families to become homeowners. CEO Shahli Akram Juma puts it this way: “Islamic finance is growing at a phenomenal rate compared to conventional banking. When you combine the burgeoning Egyptian real estate sector, which is characterized by a strong focus on niche markets, massive population growth, high inflation, and a widening gap between supply and demand for basic housing, the next crucial step is to institute reforms and introduce new services that will help stabilize the market.” Asked what key factors made Amlak choose Egypt as the country to 40

launch its international expansion, Juma points out that “Egypt's regulator y reforms in the real estate sector, and, in particular, the institutional framework created by the Mortgage Finance Authority are at the forefront in the region. We truly feel that the public authorities in Egypt understand what it takes to create a solid mortgage market.” Although he points out that there are still challenges in keeping inflation under control and strengthening the credit culture of the average citizen, he is “con-

“Egypt’s regulatory reforms are at the forefront in the region” fident with the way the relevant authorities are dealing with them.” Amlak is the first company in Egypt that will offer Islamic Home Finance products in accordance with Sharia'a principles. Asked how this will strengthen Amlak's first-mover advantage in the mortgage market, Juma says he warmly welcomes competition: “We know that being the first entrant into the market is going to put pressure on us in terms of making history by being the first company to follow the Islamic mode of financing, but our main focus is to ensure that we become an active player and set the stage for others to follow. Although conventional theory may suggest www.leaderspress.com

Juma stresses Amlak's commitment to the growth of mortgage finance and home ownership in Egypt

Amlak would want to have a monopoly in the market, we would be quite tense if we did not see followers stepping in, as competition serves the industry by creating the right balance. It is extremely important for government and companies to ensure that the momentum is sustained, and that Amlak is just the start of things to come, by encouraging other investors to enter the market in order to transfer fresh ideas and differentiated solutions. The market is so diversified and contains so many segments that pose different challenges and demands, that I think one or two major players, irrespective of the size of their investments, will not be able to create a mature industry.” Amlak's long-term approach to the mortgage market in Egypt is evident–the company will offer products with tenures of up to 20 years. According to Juma, Amlak's long-term perspective is more than a necessity dictated by the nature of the business in the Egyptian market–it's a strategic issue: “If I had to work a three- to fiveyear plan, I would be hesitant about entering the market at such an undeveloped stage, but because we looked beyond five years, I felt optimistic due to the vast potential that lies here in Egypt.” The company has a fully operative office at Citystars Mall, and will provide financing for customers purchasing any type of completed property. Other innovative products will be launched throughout 2007.

Who’s Who - Egypt 2007

A Market Leader in Mortgage Finance Housing and Development Bank's extraordinary growth serves as an example of the potential of the nascent Egyptian mortgage finance market

he Housing and Development Bank (HDB) is driving a major change in Egyptian finance, and in doing so, is making the dream of home ownership attainable for the first time for a large number of people. Mr. Fathy Elsebai Mansour, the Chairman of HDB, is passionate about his organization's mission, and the positive benefits it can bring to Egyptian society: “There is no doubt in my mind that the mortgage system is about to take off, and that its socioeconomic impact will be tremendous. Once the regular man on the street can afford his own home, he will experience a big boost in motivation. It's such a powerful phenomenon that I think it has a chance of totally transforming our economy and society.” A market with huge potential And if there were any doubt that HDB's services were meeting a sub-

“There is no doubt in my mind that the mortgage system is about to take off” stantial and growing need in the Egyptian market, then the company's outstanding financial results seem to provide all the reassurance that might be needed. Serving some 400,000 customers in the fields of economic and low cost housing, HDB's profits grew by 58% last year to EGP 110 million, and in the same period, its market

Mansour sees HDB's financial performance as an indicator of the potential of the Egyptian mortgage market

capitalization increased four times. HDB has been active in the provision of mortgage finance since 2001, when the Mortgage Finance Act first enabled mortgage-based finance to be pro-

Last year, HDB's profits grew 58% and its market capitalization increased four times

ing needs of the Egyptian population. As Mr. Mansour explained, “I think the market is huge, and I am pleased to see interest from the Gulf on the rise, as we have already been in discussions with several companies from the region. Although the mortgage law introduced in 2001 is very comprehen-

vided to owner-occupiers. The Bank has since provided advice to government on how to overcome obstacles to market growth, such as an uncertain property registration system, the general need to raise public awareness of mortgage finance, and of the benefits it offers to consumers. HDB has a positive approach to the expansion of the market, and is actively encouraging new providers, particularly from established international markets such as Europe and the Gulf, to consider entering the market. Mr. Mansour sees the possibility of a future merger with the Egyptian Arab Land Bank as a means of accelerating the growth of the overall market.

since 2002. He also serves as a

Experience of foreign companies is crucial This inclusive approach to the participation of foreign providers is a mark of HDB's confidence in the future of the mortgage finance market, and its key role in meeting the future houswww.leaderspress.com

About Fathy Elsebai Mansour Mr. Mansour has been Chairman and Managing Director of HDB board representative on the New Urban Communities Organization. Prior to joining HDB, Mr. Mansour held a number of senior positions in financial organizations, including Citibank, Jammal Trust Bank, the Saudi Investment Bank and the Cairo International Bank.

sive, we realize we are in the early stages of development, so the need for experience from more established players from the West or the Gulf is crucial. The recent entrance of Amlak Finance in the market is a case in point, which will boost confidence for other investors in the region to come. Ultimately, competition will help all players improve the efficiency and quality of the sector.” 41

Who’s Who - Egypt 2007

Egyptian Gulf Bank Looks Forward to Bright Future Prospects With a new CEO and strategic plan in the making, this bank is set to profit from Egypt's banking reforms and strong economic growth

gyptian Gulf Bank (EGB), a Omar A. Alseesi took over as CEO early well-established player in this year to implement a strategic overEgypt's banking sector, has haul that will set a new and exciting recorded strong growth over course for EGB the past few years, highlighted by a 311% increase in profits in FY 2005. In the same period, EGB increased its We also have other products for new group of local and international banks paid capital to US$127 million. graduates and the promising emerg- led by the Cairo-based Egyptian American Bank. Recently-appointed Managing Director ing mortgage finance market.” Mr. Alseesi is particularly interest“The mortgage reform process led and CEO Omar A. Alseesi said the ed in the bank's expansion plans in the by the Economic Cabinet and the bank's outlook is exciting. “EGB is a bank that has excellent area of mortgage finance. During 2004 Mortgage Finance Authority are creating the necessary potential to profit from regulatory condithe strong economic tions and legal growth in Egypt and Egyptian and Arab businessmen established Egyptian Gulf Bank framework for mortthe Middle East. gage finance. This, Along with my senior (EGB) as a joint stock company in October 1981 with a LE 100 and the significant management team, I'm million mutual fund. The bank began operations in November pent-up demand about to finish a five1983. Egyptian Gulf Bank has 10 branches in Cairo, within our growing year strategic plan Alexandria, Mansoura, and 10th of Ramadan. It offers such population, ensures that will clearly define that the market is the general direction services as retail and online banking, small business services, bill ready to take off,” he the bank will take to payments, fund transfers, telebanking, swift services, as well as said. achieve its full growth financial services such as trade finance, foreign exchange, time The challenges potential, and deterare by no means mine the specific areas deposits, saving accounts, credit cards, personal loans and insignificant, but Mr. of expansion we see as Islamic banking services. The bank's corporate clients are mainly Alseesi believes the most promising. Retail in telecommunications, electricity, gas, and fertilizers. The main potential for profit and consumer banking makes the risk of shareholders are the Mohamed Mahmoud Family (MM Group) will be key priorities, entering the busiand we are about to and the Misr Insurance Company, both of which own 20%. Arab ness at an early launch a number of taiinvestors have a 45% share in the bank, and the remaining 15% stage worthwhile: lor-made products for of the shares are free-floated on the stock market. “We have had high segments of the popuinterest rates in lation. We are deterEgypt for many mined to promote a years, and obviously culture in Egypt that encourages stronger saving habits, he was involved in the creation of this has been an obstacle for mortand will offer products that address Egypt's first private sector mortgage gage finance to flourish. I am conficrucial market needs, such as finance company, the Egyptian Housing dent the government's monetary and tools for paying university tuition fees. Finance Company, established by a macroeconomic measures will win the 42

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Who’s Who - Egypt 2007

inflation battle in the short term, and result in an environment of low interest rates. In spite of this, we at EGB are convinced of the need to launch mortgage finance now to capitalize on the advantage of being an early entrant in the market. In this endeavor we are trying to find a financial engineering formula that will enable us to offer finance to low- and medium-income people at interest rates of between 6-8%, in an environment of 9-10% market rates. One possible way to achieve this is to invest directly in the developments and turnkey projects our customers are buying into,

Egyptian Gulf Bank's branch at Mohandessin

“We are determined to promote a culture in Egypt that encourages stronger saving habits” and use part of the profits earned to compensate for the lower interest rates charged. We are in the process of creating a mortgage finance company at the bank with a new partner that will provide the specialized technical expertise in this field.” Also, according to Mr. Alseesi, the real-estate market in Egypt is at a very early stage in its development, which inevitably creates conditions ripe for speculation. This is the most important factor that stands in the way of housing becoming affordable to the general population. But, in Mr. Alseesi's view, prices will converge to lower levels as the market matures: “The problem in the housing market is affordability, more than a lack of financing. Because we are in the

development phase of the market, there's always a lot of dust in the air that needs to settle. Much of the dust is being stirred by speculation, causing artificial price inflation. But as more investors come into the sector and the regulatory framework strengthens, healthy competition should drive the market towards an equilibrium characterized by lower prices.” Discussing the interest Gulf investors will show in investing in Egypt's nascent mortgage market, Mr. Alseesi asserts that, “in the GCC, there are obvious limitations for investment in mortgage services. The smaller populations of these countries, as well as ownership restrictions on

Alseesi is particularly interested in the area of mortgage finance expatriates and foreign workers, will inevitably drive investors in this field to look for opportunities abroad. In this sense, Egypt has much more www.leaderspress.com

potential in terms of demand, both for high-end and low-income housing, which also provides the diversification

“Real estate prices will converge to lower levels as the market matures” capacity wise investors look for.” During his 28 years in banking, Mr. Alseesi has been Managing Director of Arab Investment Bank, General Manager of the Tunis Arab African Bank, an adviser to the chairman of Delta International Bank, and head of the international division at Kuwait's Burgan Bank. He presided on the board of the Bank of Alexandria for 2 years. His international experience includes working in the United Kingdom as a general manager with Arab African International Bank, and as a Director with American Express, where he was responsible for overseeing operations in the Gulf region. He has held several positions in Beirut, Kuwait, and Bahrain. 43

Who’s Who - Egypt 2007

Providing the Link Export Development Bank of Egypt looks to bring Egyptian industry to the forefront of the Arab world

xport success is a crucial factor in Egypt's economic growth. Exports account for around 25% of the Egyptian economy, and are an area of considerable potential for growth in the current climate of increasing globalization and world demand. The Export Development Bank of Egypt plays a significant role in enabling Egyptian companies to develop new business. Since 2003, the Bank has focused entirely on promoting exports in agriculture, industry and services. At the same time, the Bank is investing heavily in further developing

“Export or Die” is now a central strategic pilar in Egypt's economic development

tries they are importing labor, here we are employing our labor and upgrading it. So I think the competition and interest in the region will definitely give us the opportunity to further improve our human resources.” The strategy of the Export Development Bank is a crucial eleHisham Ahmed Hassan, Chairman ment in the Egyptian of the Export Development Bank government's economof Egypt, which is supporting the ic strategy. “Export or export driven dimension of Die” is now a central Egypt's economic growth strategic pillar in Egypt's development, as it has been in many other countries before. With a firm reputation in the Gulf for the manufacture of quality products such as steel, cement,

In order to encourage and promote Egyptian exports, Export Development Bank of

its own people and upgrading its systems to meet the changing demands of international business and ensure that Egyptian exporters receive the optimum quality services they need to compete on the world stage.

Egypt provides the following

Strategic Opportunities

Medium and Long Term Finance

Hisham Ahmed Hassan, Chairman of the Bank, sees unique opportunities for Egyptian suppliers that determine the Bank's overall strategy: “I think that by upgrading the quality and number of manufacturing facilities, we will be able to absorb the new entrants into the market that are coming with high-end standards/knowhow, and this transfer of knowledge will benefit the market as a whole,” explains Hassan. “Our major challenge within Egypt is human capital development, and while in other coun44

services: Short-Term Finance

Small and Medium Enterprise Banking

ceramic products and marble, Egypt's key manufactured goods are very much in demand given the high level of activity in construction sectors throughout the region. The fast rhythm of real estate development in the Gulf is a major opportunity for Egyptian www.leaderspress.com

The fast rhythm of real estate development in the Gulf is a major opportunity for Egyptian suppliers suppliers in this sector, as will be the extensive reconstruction program that is planned for Lebanon. By giving priority to labor-intensive manufacturing industries, Egypt is playing to some of its key comparative advantages, such as a ready supply of low-cost labor, energy supplies and natural resources, and is also ensuring that the growth in export business is creating significant numbers of much needed jobs in main areas.

Who’s Who - Egypt 2007

“The Export Development Bank is playing a crucial role in Egypt's burgeoning export business” Key Services Export Development Bank facilitates the growth in export business, primarily by providing financing facilities to enable businesses to deliver international orders, where the size of orders is often higher, and the payment terms longer than would normally be the case for domestic business. The finance that the Bank can offer also extends to longer term facilities, such as are often needed to modernize an operation and enable a business to compete with companies in other countries, by improving productivity and efficiency. The bank can also intervene to secure the supply of strategic imports, such as materials that cannot be sourced locally and are intrinsic to the completion of export orders. Alternatively it can finance import substitution arrangements, enabling a local supplier to meet a demand that had previously been sourced from a foreign supplier. Similarly, the Bank is financing developments in real estate to enable the growth of service industries, such as tourism, that are themselves major earners of foreign currency. In addition to financial services, the Bank offers export credit guarantee facilities that enable exporters to minimize their exposure to credit risk, specialist services for small and medium sized enterprises, and is also developing information, counseling and support services for exporting companies through its Export Information Center. The Export Information Center complements the Bank's financial services by providing a trusted source of impartial information, both for new

exporters and for more experienced companies who may be looking to trade with new markets. The Bank also provides 'softer' market information on trends, specific opportunities and key events such as trade fairs and delegations. Export Development Bank is playing a crucial role in Egypt's burgeoning export business. The Gulf, Europe and North America are the main markets for Egyptian exports, and as well as consolidating Egyptian suppliers' share in these markets, the Bank is enabling many exporters to locate opportunities in new markets, such as Asia. The Export Credit Guarantee Services provide a wide range of facilities for underwriting short and

About Hisham Ahmed Hassan

Hisham Ahmed Hassan worked at Chase National Bank (now Commercial International Bank) for 20 years, then became Managing Director of Suez Canal Bank, after which he was appointed as the Chairman of Export Development Bank of Egypt. He serves on the Board of Directors of many financial institutions, and actively participates in many social functions aimed at increasing awareness of Egyptian industry abroad.

longer-term credit that many exporters would be unable to support from their own resources. Finally, the Bank works to attract major foreign investments that will boost new job creation and export earnings. Egypt has achieved significant success in attracting foreignowned business to open operations in www.leaderspress.com

the country, and is building on its reputation for stability and availability of reliable labor. Financial Sources The Bank operates with authorized capital of one billion Egyptian Pounds. The principal shareholders are National Investment Bank, Banque Du Caire, Misr Bank and National Bank of Egypt. It utilizes a range of financing

By giving priority to laborintensive manufacturing industries, Egypt is playing to some of its key comparative advantages, such as a ready supply of low-cost labor, energy supplies and natural resources sources including the Egyptian government, The European Investment Bank, the African Development Bank, the European Community ASDP, the USAID Agency for International Development and the Arab Trade Finance Program. The Bank has been instrumental and dynamic in the achievement of Egypt's strong and sustained economic growth, which Mr. Hassan believes is leading to a major change in the international perception of Egypt as a remarkable export hub: “We are helping manufacturers to export to other countries, and with the sustained growth that we have seen over the past couple of years, Egypt will emerge as a significant hub for exports within the region.” 45

Who’s Who - Egypt 2007

EFG Hermes Emerges as Leading Regional Investment Bank

El Mallawany leads EFG Hermes with a laser-like focus on goals to keep the company growing as the Arab world's premier investment banking firm

After a transformational year in 2006, EFG Hermes moves forward with tremendous momentum and big plans to continue phenomenal growth

asser El Mallawany, Chairman and CEO of EFG Hermes, is very proud of the people who work for his firm, and for very good reason. According to him, they are the main factor behind the tremendous growth generated by the firm during 2006. “Our human capital is what sets us apart from everyone else,” says El Mallawany. “We are very focused on our strategy of nurturing our people while pursuing growth in financial services.” The strategy appears to be working quite well. Final numbers from 2006 revealed a 48.5% increase in total revenues compared to 2005. “Volatility in each of the markets we operate across the region presented a challenge, but the company ended the year on a positive note,” says El Mallawany. “We saw tremendous growth in business, the implementation of regional expansion, strong diversification plans, and a stable share price.” EFG Hermes looks to continuing expansion EFG Hermes is in the midst of a concerted regional expansion drive across the breadth of its business as part of its comprehensive strategy. “We have already established a significant presence in the UAE,” says El Mallawany, “and we have existing transaction mandates in investment 46

banking and asset management in Saudi Arabia. These will be followed shortly by brokerage activities.” The firm is widely recognized as the premier investment bank in the Arab world, and the market leader in securities brokerage, asset management, investment banking, and private equity and research. “Our vision has always been to lead the financial services industry in the Middle East and North Africa,” maintains El Mallawany. “We have made much

“Volatility in each of the markets we operate across the region presented a challenge, but the company ended the year on a positive note” progress towards fulfilling this ambition in all our areas of business, and www.leaderspress.com

today participate in the most important regional transactions on behalf of Middle Eastern private and institutional investors.” He goes on to say, “supporting our drive for regional expansion is a strong and diversified business portfolio and a vibrant corporate culture.” The foundation of this vibrant corporate culture is, again, the people who work for EFG Hermes. “We employ the best people and invest considerable resources in training them to deliver satisfaction to our clients,” says El Mallawany. “It is this philosophy that has produced such great success and that will keep us well out in front of our competition.” An eye towards the future Yasser El Mallawany has played a major role in the consolidation of the investment banking sector in Egypt, and he has a solid record of accomplishment in the Egyptian financial services industry. Because of his experience and acknowledged leadership, El Mallawany's thoughts on the economic future of the region are much sought after, and others in the financial industry pay close attention to him. So what does El Mallawany see in Egypt's future? “We are in a very large growth cycle,” he says, “and I expect that to continue at 7% to 9% for the

Who’s Who - Egypt 2007

“What will make or break Egypt's growth is the strengthening of the infrastructure needed to support it”

there is still reason for concern.” His apprehension is rooted in a fear prevalent in the local market, that while the outlook for 2007 is sound enough, it looks as though supply and demand will be getting seriously out of kilter by 2008. “Based on our analysis, EFG Hermes predicts that rents and prices will begin falling in 2008,” maintains El Mallawany, “although the exact extent of price falls will depend on how much of this additional supply actually hits the market.” Looking ever further ahead, the firm believes the oversupply of units that will begin in 2008 will extend as

much real estate, but that could change if instability in some countries and higher oil prices attract more people and money to the area.” A regional bank with personalized service

EFG Hermes offers its clients a complete spectrum of financial services to meet whatever needs they may have, but with the personal touch seldom found in the world of investment banking and financial services. “In every part of our business, we prioritize the demands of our clients as the key to ongoing profitabilnext five years.” Egypt's ity,” notes El Mallawany. growth will be fueled even “We apply our deep About Mr. Yasser El Mallawany further, says El Mallawany, resources of insight and by the increased appeal of experience, tailoring Egyptian real estate, the innovative solutions to Yasser El Mallawany is Chairman and CEO of EFGincreased financial liquidimeet our clients' specific ty in the Gulf region, and financial needs.” Hermes Holding Company, Chairman of EFG-Hermes recent reforms in the finanIt is this intense focus Private Equity, and Chairman of ACE General and ACE cial sector. “What will on the needs of clients Life Insurance. He is a member of the Policies' High make or break Egypt's that creates such a powgrowth is the strengthenerful value proposition at Committee of the National Democratic Party, a board ing of the infrastructure EFG Hermes. “We have member of the National Investment Bank, and a member needed to support it. the innovation and intelof the International Advisory Board of the Emerging Egypt provides a lot of lectual capital to find diversity in terms of cliinvestment opportunities Markets Private Equity Association (EMPEA). mate, in terms of locawhere others might not tions,” notes El Mallawany. look, and the corporate “The growth of real estate strength to capitalize on He has a lengthy record of accomplishment in the and trying to create Egypt these,” says El Egyptian financial services industry, playing a major role as a hub of tourism is great, Mallawany proudly. in the consolidation of the investment banking sector in but the issue will be infra“This allows us to harstructure.” ness the synergies Egypt and facilitating the emergence of EFG-Hermes as Even with this in mind, between our business the Arab region's most prominent investment bank. though, El Mallawany says, lines to translate poten“We are in a strong growth tial value into realized cycle for the country. I am profit.” El Mallawany has spent his entire career in finance. He excited about the tremenHe goes on to say, began with Commercial International Bank (CIB), formerdous potential of the real “What we have managed estate market in Egypt in to build is an integrated ly Chase National Bank, where he worked for 16 years. comparison to the Gulf, engine of investment Since that time, he has devoted his professional energy particularly in Dubai.” His banking that provides concern over Dubai's real services equivalent to and expertise to the growth and benefit of EFG Hermes. estate market stems from a the big boys, however 45-page analysis recently with the flexibility and published by EFG Hermes. reach to be a local investAccording to the firm's ment bank wherever we analysis, Dubai has a demand for far out as 2010, when the number of go.” El Mallawany firmly believes this 40,000-50,000 residential units per year new residential units will double to unique structure and approach will but there are 69,000 units that will be about 530,000. “Of course all of this is carry EFG Hermes into continued supplied in 2007. An even bigger issue predicted on no significant slowdown growth and success. “We are coming looms in 2008, when 139,000 units are in the economy, which would weaken off of a great year,” he says, “and we due to be handed over. “Even though the flow of expatriates into Dubai,” are looking to leverage this momentum the delivery dates of those 2008 units notes El Mallawany. “At the moment it into further expansion throughout the are likely to slip,” says El Mallawany, looks like Dubai is building far too region.” www.leaderspress.com

Who’s Who - Egypt 2007

More about the success of EFG Hermes Increasingly, other financial institutions are measuring themselves against EFG Hermes, a fact that is not lost on Yasser El Mallawany. “We are the largest investment bank in the region, with a strong brand and footprint across the Arab world,” he says. “All of that is

“The key to expansion for EFG Hermes has been making its business model scalable” because of a vision, the ability to attract human talent with the right exposure and financial competence and bringing them back as partners, not employees. We share a vision and focus on implementing it.” According to El Mallawany, the key to expansion for EFG Hermes has been making its business model scalable. “The product lines start in the region, and then we blend the human talent from within the company and from the region itself,” he says. “To achieve growth we apply a very focused strategy in terms of expanding our organic business, which is investment banking, nurturing a culture of client focus, and at the same time expanding into complemetary financial services as a way to reduce the volatility of the investment banking activities.” If the success of EFG Hermes has been tremendous, then the outlook for the future is even stronger. “We have positioned ourselves to be one of the main bridges for intra-regional trade and investment,” notes El Mallawany. “There is a paradigm shift in our country with regards to financial investment, and this has creat-

“There is a paradigm shift in our country with regards to financial investment” ed a strong momentum that we will seize fully through an aggressive investment program.” Those on the inside of EFG Hermes as well as those on the outside, frequently make note of the leadership and guidance provided by Yasser El Mallawany when asked about the firm's success. “The key to success is teamwork,” maintains El Mallawany. “I learned a tremendous amount from my early days in banking at Chase Manhattan, but the leadership skills of our people have sharpened the most due to living through many different financial cycles.” Leadership, vision, and focused strategy are at the heart of EFG Hermes and the hallmarks of Yasser El Mallawany's tenure as CEO of the firm.