Will Orascom Development Be Affected By FTI Touristik?

Tasneem Khalil 24 Jun 2024

As Orascom Development Group has been lately involved with the news of the bankruptcy of the German company FTI, people have been concerned about the future of their investments. The company recently issued a statement about FTI and the implications for Meeting Point's debt guarantee. This announcement resulted in discussions and concerns among stakeholders.

What are the details of the impact on Orascom Development Egypt?

Orascom Development Egypt has actually clarified that it holds no stake in FTI or Meeting Point. The company emphasized that the bankruptcy's impact on its operations is minimal. Orascom Development remains attentive, closely monitoring the situation, and promises to keep its shareholders updated with any new developments.

About FTI

FTI is a major company in the travel industry that employs 11,000 people worldwide. The company operates flights to over 40 destinations globally and has an extensive network of 10,000 partner agencies in Germany.

The company is now committed to guarantee that flights already in progress will continue as planned. However, the flights scheduled after June 4 may face disruptions, with some potentially being canceled or partially implemented.

In 2014, Egyptian businessman Samih Sawiris made an investment in the FTI company, and acquired a 25% stake. Later in 2020, Sawiris decided to make a huge investment in the company. FTI is now led by the businessman Samih Sawiris as he owns a 75% stake. Samih Sawiris wanted to position himself as a player in the global travel and tourism industry by purchasing a substantial share of FTI. This resulted in broadening his business portfolio while also providing FTI with the financial backing and strategic direction.

Recently, the American investment fund Certares expressed interest in acquiring FTI for one euro, coupled with an investment of 125 million euros to the company. This potential acquisition is currently under review by the German competition protection authorities. If approved, it could significantly impact FTI's future operations and market presence.

About Orascom

Orascom Development Egypt was established in 1996 and has grown into a leading development company specializing in creating tourist and residential projects across Egypt. The company operates a business model that focuses on developing residential units, hotels, and recreational facilities. Orascom Development also constructs essential infrastructure such as hospitals, schools, and public facilities within its projects.

For more than three decades, Orascom Development has been a pioneer in developing world-class destinations. Their expertise in developing real estate in Egypt has set them apart in the industry. Each one of their projects is a master-planned marvel that stands as a reflection of Orascom's excellence. The company has an impressive portfolio and it owns lands totaling 50.25 million square meters. The company’s portfolio also includes:

Hotels: It operates 24 hotels with a combined total of 4,932 rooms.
El Gouna in Hurghada: Located in the Red Sea, El Gouna offers luxury living and different recreational activities.
Taba Heights in the Sinai Peninsula: It’s known for its stunning landscapes and beautiful environment. Taba Heights is a premier destination for relaxation and adventure.
Makadi Heights in Hurghada: This destination is designed for those seeking a blend of luxury and leisure.
Bayoum in Fayoum: Bayoum offers a unique experience, offering natural beauty and modern amenities.
O West 6th of October: A modern residential compound that promises a high standard of living with its luxurious facilities and services.

Orascom Worldwide

It all began with a simple idea which is to create a little piece of paradise near the Red Sea. Today, Orascom Development is a leading developer of fully integrated projects with the best communities in three continents.

Orascom Development has secured more than 100 million square meters of land across Egypt, the UAE, Oman, Morocco, Montenegro, Switzerland, and the UK. This land bank is almost three times the size of Dubai. Currently, over 40 million square meters of this land are developed or under development, with advanced plans for many undeveloped areas. Among the remarkable international projects:

Andermatt Swiss Alps

Andermatt Swiss Alps is an outstanding project by Orascom that has a unique location in the Swiss mountains. This project is a year-round destination that offers breathtaking views and a variety of activities for all seasons. You can enjoy skiing in the winter, hiking and golfing in the summer. The Andermatt Swiss Alps provides a perfect place that offers nature and luxury.

West Carclaze Garden Village

West Carclaze Garden Village is a groundbreaking community located near St. Austell in the southwest UK. The project delivers modern living within the stunning countryside which is surrounded by lakes. As the first ECO BOS community, West Carclaze offers residents far-reaching views of the sea and the coast of Cornwall.

The community is designed for those who aspire to live cleaner, healthier lifestyles. The homes are a blend of traditional inspiration and modern innovation that employs a "fabric first" approach, focusing on modern design, innovative technologies, and high-quality materials.

Jebel Sifah

Jebel Sifah has been a popular destination since its development. This coastal project falls between miles of sandy beaches and the majestic mountains of Oman, offering a unique atmosphere of natural beauty, outdoor activities, and luxurious living. The project stands out for its golf course with views of the Sea of Oman. Jebel Sifah offers a selection of tax-free, freehold apartments and villas.

Orascom Profit Surge in Q1 2024

Orascom Investment Holding Company has reported a great increase in its financial performance during the first quarter of 2024. The company’s independent financial statements reveal a 784.56% rise in profits compared to the same period last year.

Orascom announced that it achieved a net profit of 570.19 million Egyptian pounds between January and the end of March 2024. This growth highlights the company's strategic efficiency and market position.

The announcement of Orascom’s substantial profit increase is one of its strategic financial movements, including notable activities by Banque Misr. Although specific details about Banque Misr's involvement were not provided, the financial environment and investor confidence influenced by it likely play a role in the company's improved performance.

Orascom Holding’s targeted investment strategies are likely to pay off, leading to higher returns. In addition to that, the company expands into new markets and strengthens its positions in existing ones to multiply its revenue growth.

As Orascom Holding continues to grow in the market, and with its latest announcement about not being connected to FTI, the worries investors might have should be cleared. The company is likely to continue powering its strategic investments and market opportunities to sustain this growth.