• Orascom Construction plans to reduce Egypt projects to a third by 2026, focusing on international expansion, particularly to the UAE and Saudi.
• CEO Osama Bishai highlights improved dues collection and the company’s preference for foreign-funded, inflation-compensated projects in Egypt.
• Orascom accelerates international growth, with major projects in Saudi Arabia and the UAE, including power plant expansions and seawater treatment.

Orascom Construction

What happened? Orascom Construction is planning to minimize its projects in Egypt to make up a third of its work by 2026. This is in line with its expansion abroad. 

In an interview with Alsharq Business, Osama Bishai, CEO of Orascom Construction explained that the company is selective when choosing projects in Egypt. Furthermore, he clarifies that it favors projects that secure foreign currency funding eben partially as well as projects financed by international entities. Additionally, the company favors projects that take into account compensation in the case of inflation or abnormal price fluctuations.

Local Challenges The CEO pointed out the challenges faced by the company in Egypt, most notably collecting dues from government entities. However, he further clarified that there was a significant improvement in collecting dues during the first quarter of this year. He also praised the efforts of the relevant authorities in settling overdue payments.

This decision comes at a time when some Egyptian construction companies have faced issues with the impact of exchange rate fluctuations and rising construction costs. Businessman Naguib Sawiris previously warned of a “ticking time bomb” in the real estate sector due to the dollar crisis, according to Asharq Business.

Expansion 

What are their expansion plans? In terms of expansion, Orascom is accelerating its entry into markets abroad, particularly in the UAE and Saudi. In fact, they have already begun executing projects there according to Beshay.

For instance, In Saudi Arabia, Orascom Construction and the Spanish Company Tecnicas Reunidas partnered to expand the Al-Qurrayyah Independent Power Plant. Meanwhile, in the UAE, the company is part of a consortium responsible for developing and operating sustainable seawater treatment facilities.