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Madinet Masr Housing and Development, the Egyptian real estate firm led by Abdallah Sallam, posted a net profit of $26.4 million in the first half of 2025, compared with $30 million in the same period last year. The drop reflects a mix of higher cancellations and rising construction costs, which put pressure on the company’s margins.
Profit dips as revenue climbsAccording to its half-year report, the company’s profit fell 11.9 percent to EGP1.28 billion ($26.43 million), held back by cancellations and higher construction costs. Revenue, however, rose 7 percent to EGP4.8 billion ($98.86 million), supported by record sales and an 86 percent increase in deliveries to 521 units.
In the second quarter, contracted sales rose sharply, climbing 65 percent year-on-year to EGP10 billion ($205.96 million). Deliveries more than doubled, while the backlog expanded to EGP80.5 billion ($1.66 billion), underscoring steady buyer demand despite higher expenses.
Strong performance from flagship projects
Sarai and Taj City contributed nearly three-quarters of first-half sales. Total unit sales fell 39.5 percent to 1,738 compared with a strong prior-year base, but rebounded in the second quarter with 798 units sold, up 51.4 percent.
Cash collections rose 18.2 percent to EGP7.1 billion ($146.23 million), while delinquencies held steady at 1.8 percent. To speed up development, Madinet expanded its land bank to 12.8 million square meters and raised capital spending 61 percent to EGP2.9 billion ($59.73 million).
Sallam stresses resilience, regional expansion
Executive Chairman and Managing Director Abdallah Sallam said the company’s growth was built on a long-term approach. “Our strong sales and delivery growth reflect our ability to adapt to customer needs and market conditions,” Sallam said. “We remain committed to expanding regionally, diversifying our offerings, and delivering lasting value for our stakeholders.”
Beyond Egypt, the company is pushing deeper into regional markets. Subsidiary Minka co-launched the Shark Tank Business Park with Sony Pictures Entertainment and IMP, while a new Dubai-based unit, Cities of the World, signed an MoU with Waheej Real Estate in Riyadh. Meanwhile, Al Nasr Company for Civil Works advanced construction at Taj City and Sarai.
Building on a solid foundation
Founded in 1959, Madinet Masr has grown into one of Egypt’s most prominent developers under Sallam’s leadership. He also founded Minka Development, which broadened the group’s portfolio. Total assets climbed 19.3 percent to EGP33 billion ($681 million), while retained earnings rose 48.6 percent to EGP3.85 billion ($79.3 million).
With a market capitalization of EGP9.18 billion ($189 million), the Cairo-based developer is strengthening its position in New Heliopolis City and beyond. Its portfolio spans more than 12.7 million square meters of land, supporting ongoing projects such as Taj City, Sarai, and The Butterfly, alongside new commercial ventures including Tajed and Theqa.
