Growth from initial investment of EGP2.5 Billion to EGP18 Billion
Cairo, Egypt – Majid Al Futtaim, the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa region, is reiterating its long-standing commitment to Egypt. The company recently announced expanding its investments in Egypt, pumping EGP18 billion in the market as part of an ongoing five year plan. The investment plan includes new developments as well as expansion of the existing projects, and is expected to create an additional 144,000 direct and indirect job opportunities.
“Majid Al Futtaim has been spearheading the retail sector in Egypt since 2002, through successfully introducing new concepts to develop the local retail sector,” said Alain Bejjani, Chief Executive Officer of Majid Al Futtaim Holding. “Due to its unique diversity, Egypt is considered one of the most promising markets across the region. As such, we’re keen to maintain and expand our operations locally. With the Egyptian government demonstrating remarkable efforts to further enhance the investment environment and boost investors’ confidence in the market; we are optimistic about 2015 and beyond. The upcoming Egypt Economic Development Conference (EEDC) is a great example of these efforts. At Majid Al Futtaim, we believe that EEDC is an important step towards highlighting Egypt’s growing potential across all sectors, which will contribute in accelerating the aspired economic recovery.”
Majid Al Futtaim’s plan includes investing EGP4.9 billion in its flagship project, Mall of Egypt. Located in 6th of October City, the two-level mall spans of 455,500 square meter built up area and will include Ski Egypt, the first indoor ski slope in the continent of Africa as well as over 420 stores of international and local brands. Projected to open in 2016, the mall is expected to create 41,000 direct and indirect job opportunities. Majid Al Futtaim is also investing EGP250 million to develop an integrated road network around the mall, to provide traffic solutions for the roads surrounding the site to facilitate traffic flow in the area and allow visitors direct and safe access/egress from Al Wahat Road.
Commenting on the timeline of the plan, Abdallah El Nockrashy, Majid Al Futtaim Properties Country Head for Egypt said “We are working closely with the relevant authorities to move forward with our pipeline projects according to the projected timeline. One of the projects we’re currently discussing with the government is City Centre Almaza, which will be Majid Al Futtaim’s third City Centre in Egypt and its 12th in the City Centre network - the largest mall network across the Middle East.”
Furthermore, Majid Al Futtaim recently announced the completion of the new expansion at City Centre Alexandria. With total investments of EGP70 million, the new phase spans 12,000 sqm. Inaugurated under the name of the Leisure Precinct, the new phase created 500 new job opportunities, making the total jobs opportunities offered by the mall, since its opening in 2003, 4500 jobs.
The geographic diversity realized by Majid Al Futtaim’s strong presence across Egypt is a main factor in the company’s outstanding success. As such, the expansion plan of Carrefour Hypermarkets includes allocating EGP5 billion increasing the network of Carrefour hypermarkets and supermarkets to 55 by end of 2019.
Majid Al Futtaim has been successfully operating in Egypt through owning and managing City Centre Maadi and City Centre Alexandria, with a total current value of around EGP2.5 billion. City Centre Maadi opened in 2002, and spans 28,000 sqm of retail space, offering a unique retail mix, with 87 of the best international and local brands, while City Centre Alexandria opened in 2003, and spans 60,370 sqm of retail space that includes 168 international and local brands.