Annual Report - Orascom Development

Business Development
During 2006 we continued to increase our international presence
while improving the profitability of existing towns in Egypt.
Our land bank, by year end, stood at 100.9 million sq mt, an
increase of 54% over the previous year (2005: 65.3 million sq mt).
A breakthrough for OHD in 2006 was the establishment of our first
European project, covering a total of 1.38 million sq mt of land in
Andermatt, Switzerland. In early 2007 we also announced a further 15
million sq mt in Morocco,
which is not yet reflected in our figures.
To continue our commitment to sustainable development, we
extended our strategy to include developing affordable housing
across Egypt. We established Orascom Housing Communities
(OHC), through which we intend to provide affordable housing to
low income Egyptian families with the same care and commitment
applied to all OHD developments.
During 2007 OHC will commence construction on the first plot
of land: development of an initial 9.2 million sq mt outside Cairo
at 6th October City. Further discussions are in place between the
Government and OHD concerning developments at El Fayoum and
the Red Sea region, which will be an exciting second stage for the
newly formed company.
Outlook
I am pleased with our results and progress this year and the
integrated business model we have created has best positioned us
to achieve our future goals as a company.
The market for international real estate is forecast to continue its
strong growth. To capitalise on this potential, we will focus our
strategy to acquire substantial land banks around the world, ahead
of the competition, to secure long term growth on preferential terms
and build up a solid asset base. This strategy will enable us to drive
forward our goal of launching an OHD town every year.
OHD’s increasing presence within the international market means we
are well placed to capitalise on the continuing demand for overseas
real estate. To ensure the success of our towns, we will build on our
strong and successful partnerships with industry leaders and constantly
improve our offering to drive demand.
Looking forward, OHD’s track record and careful, phased approach
to development together with our continued commitment will ensure
the successful execution and delivery of our projects, delivering
results and driving shareholder value.
People
During 2006 we redefined management roles and the board structure
to capitalise on the extensive talents and experience of our team. This
development is designed to support the requirements of our growing
operations in Egypt and abroad.
Samih Sawiris
Chairman and CEO
We have adopted a matrix style management approach, with country
heads responsible for local operations supported by a management
committee to oversee our four main business segments: Hotels,
Construction, Real Estate and Destination Management.
We continue to place great emphasis on recruiting the highest
calibre individuals and remain committed to continued career
development and training opportunities.