SECON- The Saudi Egyptian Construction Company: CEO Considering SECON's Capital with $100mln... We Seek to Establish Fresh Projects Bids law Hindered Investment Movement and Raised Prices in Last Years Eng. Darwish Hassanein -CEO of SECON- The Saudi Egyptian Construction Company, said his company did not postpone its projects which started to implement or its expansion strategy projects, despite the unrest situation which the country is suffering from. The company has confidence in strengthening the Egyptian economy and the ability to achieve rapid growth rates, in addition the strong support from the Saudi government which owns about 50% from the company's shares ,its insistence to promote the Egyptian economy and to expand its investments entire the real-estate market, which pushes the company to take step forward in implementing SECON Nile Towers with total cost reached EGP1.6billion. Hassanein has informed Amwal Al Ghad that his company is planning to boost its capital with around $100million shared between the Saudi and the Egyptian governments, to support the orientations of the company's, expansion, noting that SECON has good plots portfolio up 200K meter squares, distributing between CairoAlexandria Desert Road and El Katameya. SECON is considering to establish residential buildings project in New-Cairo-Compound V zone by purchasing some plots which the government is currently offering by bid system. Hassanein has asserted that the real estate sector is considered to be one of the most vital sectors which will drive the growth rates in Egypt within the coming period, as it is the most attractive for investments during the last years because of the high-demand and the low-offer, therefore, we should focus on solving the obstacles which the sector suffered, in addition dragging nearly 100 affiliated manufactures, as well as solving the unemployment dilemma as it has worsened during the last phase. Hassanein has explained that there are many challenges which the real estate investor is facing during the current time, including the failure to reach for settlements with the real estate investors till now, as well as withdrawing new plots which will threaten the attraction of investments, in addition the government did not offer plots and it only based on bid system. Hassanein believed that bids and tenders law hinder the investment movement significantly, especially it leads to high-prices of the residential plots and the worsening of housing crisis in Egypt, which brings out the deficit a year, pointing out that the main dilemma of this law is that it is not intend to make real developments, so we need to look into alternative of this law during the current phase. Hassanein said the real estate sector is facing anticipation whether by the investor who delays pumping fresh investments or start new projects , the investor is concentrating on the current projects and to deliver it on time. The investor also is suffering from anticipation and he is afraid to spend savings on a residential unit that may not be completed, or face any negative decision by the government. Hassanein pointed out that the abolition of the country's contracts with the foreign investors is one of the discourage factors for any foreign investments, and it is an indirect message to prevent the entire of any foreign investments in the real estate market, asserting that the contracts of the investor must not be compromised, except for existing any corruption, in this case the government should investigate with the employee who encourages this corruption. He asserted that providing facilities which needed by the local investor in order to invest his projects is considered to be the first attractor for foreign investments, as these facilities will extend the implementation period of the projects , in case of delaying, due to the recent political and security turmoil , especially if the local investor's positions were not stabled, so the foreign investor won't be encouraged to invest in Egypt. He has revealed SECON's intention to purchase plots in the auction which the New Urban Communities Authority (NUCA) is planning to offer in different areas, such as Compound V. SECON is intending to establish residential projects for the average category, noting that the company is expecting highly demand on the residential units of this category, as this area has luxury units. Hassanein added that the first phase of Lake Dream project has been completed and its scheduled to be delivered by the end of this year, and this phase represents 65% from the project. The second phase also started and it will be completed by 2015 with EGP450million investments. He has emphasized that it is currently arranging to finalize SECON's loan worth EGP650million and the bridge-loan worth EGP92million has been contracted as part of the loan's value. He further said holding international conferences in Egypt within the current phase will contribute in encouraging the foreign investments in the country , as it presents description about investment nature in all sectors, and it confirms on Egypt's preparation to host foreign investments in all sectors . He expected that Euromoney Conferences will activate the investment movement in various economic sectors during the next phase.
