Egyptian billionaire Samih Sawiris' Orascom Development secures $356 million loan for Cairo mega-project

Orascom Development Egypt, the real estate company founded by Egyptian billionaire Samih Sawiris, has signed an 18 billion Egyptian pound syndicated loan, about $356 million, with three of the country's largest banks to accelerate construction at its flagship O West development in Cairo.

The 10-year facility was arranged by Commercial International Bank, the National Bank of Egypt and Banque Misr, and was signed through the company's subsidiary Orascom for Real Estate. CIB acted as initial lead arranger, bookrunner, facility agent and account bank, Banque Misr served as lead arranger, bookrunner and security agent, and the National Bank of Egypt acted as lead arranger and bookrunner.

The package combines new money with refinancing. Of the total, about $237 million (12 billion pounds) is fresh funding, while roughly $119 million (6 billion pounds) refinances an existing loan the company took from CIB to support the same project. The structure gives O West a longer runway of committed capital at a time when Egyptian developers face higher construction costs and tighter liquidity.

O West is one of Orascom Development Egypt's largest projects, a residential and mixed-use community in 6th of October City, west of Cairo. Iskander Touma, chairman of the company, told Asharq Business that construction has passed 25% completion and that the company expects to meet its delivery schedule without delays. The development spans phases marketed under names including Whyte, Tulwa and the O-Business District.

The financing lands as the company navigates a mixed financial picture. Orascom Development Egypt reported net profit after tax attributable to the parent of 1.72 billion pounds in the first quarter, down 15.7% from a year earlier. Shareholders approved a capital increase of about 2.52 billion pounds in June, issued from retained earnings as bonus shares, strengthening the company's equity base as it funds its development pipeline.

The deal underscores the willingness of Egypt's biggest lenders to keep financing large-scale real estate even as the sector absorbs the effects of currency devaluation and inflation. Long-term syndicated loans have become central to how Egyptian developers keep major projects on schedule, replacing shorter bridge facilities with committed multi-year funding. Law firms MHR and Partners, alongside White and Case, advised Orascom Development, while Sarie-Eldin and Partners acted for the banks.

Orascom Development Egypt is the domestic arm of Orascom Development Holding, the tourism and real estate group built by Samih Sawiris. He is best known for creating El Gouna, the Red Sea resort town that became one of Egypt's most successful private developments, and for expanding the model into integrated communities that combine housing, hotels, retail and infrastructure. The Egyptian company develops O West and other projects under license from the wider group.

Sawiris is one of three brothers who each built separate fortunes atop the conglomerate their father, Onsi Sawiris, founded. Samih concentrated on tourism and property through Orascom Development, while his brothers Nassef and Naguib built their wealth in construction materials, fertilizers and telecommunications. The family ranks among the wealthiest in Egypt and across Africa, and its various companies remain central to the Egyptian economy.

The financing also reflects the strategic weight Egypt places on 6th of October City, a satellite city west of Cairo that the government has promoted as a hub for housing and industry to relieve pressure on the capital. O West sits among a cluster of large private developments there, competing for buyers seeking integrated communities with residential, commercial and leisure components.

For Orascom Development Egypt, the loan secures the capital to push O West through its construction phases and continue handing over units to buyers. Touma's assurance that the project remains on schedule matters in a market where delivery delays have eroded confidence in some developers, and where access to long-term bank funding has become a marker of financial strength.

The company now moves ahead with one of West Cairo's largest developments backed by a consortium of the country's dominant banks, a signal of continued confidence in Egyptian real estate despite the economic headwinds weighing on the broader economy.