Egyptian real estate giant Palm Hills Developments, led by billionaire Yasseen Mansour, has announced its expansion into Saudi Arabia.
The company has established a new entity in the Kingdom aiming to capture a substantial share of the Middle Eastern real estate market.
The news, disclosed via the Egyptian Exchange (EGX), also revealed the appointment of Majed Sharif as the CEO of the new Saudi venture. Sharif will oversee operations and drive growth in the Saudi market, leveraging Palm Hills’ extensive experience and strong market position.
This expansion follows an impressive financial performance by Palm Hills in the first quarter of 2024. The company reported a remarkable 298% increase in consolidated net profits, reaching EGP 1 billion ($20.34 million), compared to EGP 252.67 million ($5.13 million) in the same period last year.
This significant growth is attributed to a substantial rise in revenues, which increased from EGP 13.6 billion ($440.15 million) in 2022 to EGP 17.46 billion ($565.13 million) in 2023, demonstrating the company’s resilience amid global economic challenges.
Palm Hills Developments diverse portfolio
Palm Hills, Egypt’s leading real estate developer, focuses on integrated residential, commercial, and resort projects. Under Mansour’s leadership, it has expanded its reach with projects in Singapore and Saudi Arabia.
Additionally, Palm Hills has partnered with international giants on various projects, including a collaboration with Marriott International to open The Ritz-Carlton Cairo, expected to be operational in 2027.
In addition, in May, Palm Hills secured a deal to develop a tourism project on Egypt’s Northern Coast. This joint venture with Pickalbatros Hotels & Resorts involves constructing a new resort on a 220-fedan site, adding 2,000 hotel rooms to Pickalbatros’ portfolio over the next three years. This project aims to reinforce Palm Hills’ status as a leading developer in the region.
What this expansion means for Palm Hills Developments
Saudi Arabia represents a lucrative market for Palm Hills due to its rapidly growing economy and ambitious Vision 2030 plan, which aims to diversify the country’s economy and reduce its dependence on oil.
The real estate sector is a key component of this vision, with significant investments being made in infrastructure and housing projects.
Moreover, the government has introduced reforms such as allowing non-Saudis to own real estate in specified areas aiming to attract foreign investment in the Middle Eastern nation.
Such reforms along with an increase in the demand for rental properties make this expansion a potentially lucrative one for Palm Hills Developments. By entering the Saudi market, Palm Hills aims to capitalize on these opportunities and establish itself as a major player in the region’s real estate sector.
That said, it won’t all be smooth sailing for the Cairo-based real estate company, the expansion comes with its own set of challenges. For instance, the competitive landscape, regulatory environment, and cultural differences will require Palm Hills to adapt its strategies and operations to succeed in the new market. However, the company’s proven track record and strategic approach position it well to navigate these challenges and achieve its growth objectives.
