Khaled Abbas, CEO and Managing Director of the Administrative Capital for Urban Development, has announced that the company is expanding its operations beyond the new capital. The company has bid on a tender to develop Cairo's downtown area in partnership with the Egyptian private sector. This move is part of the company's strategy to utilize its expertise in managing and developing areas with high investment potential and cultural significance.
The Administrative Capital for Urban Development was established with the goal of creating a replicable model for managing cities with significant investment opportunities. The company aims to establish subsidiaries or independent companies to handle development, maintenance, and asset management. This approach has enabled the company to explore opportunities outside of the new capital, including the development of Cairo's downtown area.
Cairo's downtown area is renowned for its historical and archaeological value, and the company sees an opportunity to revitalize the area while making it more attractive and sustainable. According to Abbas, the company's average return on investment over the past decade has exceeded 30%, which will serve as a benchmark for evaluating future investments. The company plans to focus on generating revenue from subsidiaries and investment projects, rather than solely relying on land sales.
The Administrative Capital for Urban Development has achieved significant success over the past decade, with its value approaching EGP 1 trillion. The company attributes this growth to its strategic vision and effective management. A recent study by a prominent consulting firm found that the new capital is the top investment destination for individuals in the Gulf region, followed by the North Coast and New Cairo.
The company's expansion plans are not limited to Egypt's real estate sector. Abbas revealed that the Central Bank of Egypt is set to relocate to the new capital by the end of the year, followed by 18 banks with existing headquarters in the city. The company's focus on developing a comprehensive and sustainable urban environment has made it an attractive destination for investors and institutions.
Effective management of the city's infrastructure and services is a significant challenge for the company. To address this, the company is investing in a sophisticated surveillance system and establishing control centers to enhance security and service delivery. The company also allocates EGP 1.5-2 billion annually for maintenance, ensuring that the city's infrastructure and services are well-maintained.
The company's growth strategy is built around creating sustainable revenue streams and maximizing the value of its assets. By diversifying its investments and expanding its operations, the Administrative Capital for Urban Development aims to solidify its position as a leading player in Egypt's real estate and urban development sector.
Key points
- The Administrative Capital for Urban Development has bid on a tender to develop Cairo's downtown area in partnership with the Egyptian private sector.
- The company's average return on investment over the past decade has exceeded 30%.
- The company's value approaches EGP 1 trillion, driven by its successful strategy and effective management.
