APRIL 2013 |
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They currently have projects in development in Egypt, Morocco, Oman, Switzerland, Jordan, Montenegro and the United Kingdom. It will not end there. Orascom Development also boasts a land bank of 118 million m2, 26 operating hotels and 6,516 hotel rooms and they have a workforce of over 17,000 employees.
They now directly manage four fully integrated operating towns: El Gouna (on the Red Sea), Taba Heights, (in Sinai), Haram City and The Cove, Ras Al Khaimah. The fi rst three are all in Egypt, the fourth in the United Arab Emirates.
El Gourna alone comprises 15 hotels, 2,500 residential units, a marina, a golf course, an international school and a hospital – as well as all the necessary civic infrastructure.
So how did Samih Sawiris get involved in developing hotels? His reply is disarming: “I didn’t want to. I didn’t like hotels. They took too long to build, too long to turn a profi t and too much capital. Fortunately, if you keep them long enough, they get better.” In the end, he felt he had little choice. “Tourism was becoming a major factor in the Egyptian economy and the only type of tourism, at the time, was built around hotels.” But his aim was not to get into tourism. “I wanted to generate jobs and wealth in our community. There was no other obvious way. Hotels were just a means to an end.” How does he defi ne success? “Success for the project is creating wealth and employment where there was previously none. Success for my company is building up a land bank of increasingly valuable land. In addition, the projects must be sustainable over
Built from nothing |Sawiris develops valuable projects from previously barren land – not bad for a man who didn’t like hotels the long term.”
“This will be huge. When it is
How does he do that? “We make it easy for the government. They know our record. They know we will do what we promise to do. So they give us the land. We do the rest. When we have fi nished, the government will collect a lot of taxes.” How did he get support for the fi rst project, before Orascom had such a formidable reputation? “Hard work and good luck!” Orascom’s projects are placed in carefully chosen locations and employ well thought-out infrastructure and a sustainable and environmentally- friendly layout.
Such qualities are being applied
to Andermatt (in Switzerland) by transforming the existing village into a car-free zone and using a carbon-low energy supply system for the entire resort.
fi nished it will rival St Moritz. The concept has really taken off and prices are already rising, despite the fact that we have only just started.” Has he used the same investment model for each of the developments? “Basically, yes. It works and I am too lazy to work out a new plan for each project!”
How do the authorities react to seeing his company making money from land that they have given to him? “Sometimes, they complain. Then I remind them that this land was nothing: often bare desert. I remind them that the projects have brought employment and prosperity. I remind them that they have brought in taxes. I remind them that this is not easy and requires a great commitment over a long time.”
“This will be huge. When it is fi nished it will rival St Moritz. The concept has really taken off”
How long? “Typically, 15-20 years.” Once you have acquired the land – either free or at the right price – what further support do you want from the authorities in the places where he is building? “Cooperation is nice but what we want most is just to be left on our own to get on with the project without interference.”
Luxury | The company’s integrated towns house a great range of leisure facilities
Out of all his success, what has given him the most pleasure and pride? “Without doubt, the low cost housing project we did in Cairo. We built everything; schools, a hospital, the other infrastructure and a lot of housing. 35,000 people now live there.” What has been his biggest surprise? “Developing our Lustica Bay project in Montenegro. Usually, we are the fi rst into an area, so we have a lot of work to do in defi ning the ground
rules and setting up. In Montenegro, others (especially Peter Munk at Porto Montenegro) had been there before us and done that hard work. It made me realise that it’s maybe not the best idea to be fi rst.”
What other lessons has he learned? “After 20 years, I could write a book about the things you shouldn’t do. There is not a mistake that I have not made.” How does he deal with mistakes? “Move on. Have no regrets. Fix the problem and move on.” About the only thing missing in his all-included tourist resorts are the airlines to take the passengers there. Has he thought of entering the airline industry? “I’ve tried that. I have never lost money so quickly!”
Do they build their own projects? Generally not. Fortunately, help is at hand. Orascom Construction Industries SAE - run by his brother.
As we said, Samih Sawiris is a busy man. Like many people who have busy business lives, he crams a lot more into his working day. In their spare time, he and his family support and are trustees of the Sawiris Foundation for Social Development, which they founded in 2001. It’s mission: “To contribute to
Egypt’s development, create sustainable job opportunities, and empower citizens to build productive lives that realise their full potential.”
They support initiatives that
encourage job creation through training, education and access to microcredit. They also enhance efforts to improve health and further the endeavours of local communities to improve infrastructure and gain access to basic services — two important prerequisites for higher productivity and the increased empowerment of citizens. As if this did not keep him busy enough, Samih Sawiris is also a board member of the Guggenheim Museum. A truly fascinating man running some fascinating projects.
THE LAST WORD INTERVIEW | 63 Developer profi le
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