Egyptian tycoon Abdallah Sallam leads Madinet Masr's expansion plan with $5 million investment

Madinet Masr Housing and Development, the Egyptian real estate firm led by Abdallah Sallam,  is stepping up its regional expansion with a new $5 million investment. The company’s board approved the capital injection to support the launch of real estate development projects outside Egypt, according to a stock exchange disclosure. 

The move comes as the Cairo-based developer seeks to deepen its presence in Gulf markets. Last month, its investment arm, Secure Assets for Fixed Earnings (SAFE), outlined plans to set up a real estate investment fund in Saudi Arabia with a target capital of 300 million Egyptian pounds ($6.2 million). 

New markets, growing ambitions 

Founded in 1959, Madinet Masr has long been a fixture in Egypt’s property market. Over the decades, it has delivered more than 20,000 housing units and built its reputation on developing large-scale residential projects to ease Cairo’s housing shortage. 

Under Abdallah Sallam, the developer is casting its sights beyond Egypt. In June, it established a Dubai-based subsidiary, Cities of the World, to reach buyers in the Gulf. By August, it had entered talks to acquire three land parcels in Riyadh, each spanning 300,000 to 500,000 square meters, marking a step toward a broader presence in Saudi Arabia.

Resilient performance amid challenges 

Madinet Masr’s expansion comes as it navigates a difficult economic backdrop at home. In the first half of the year, Madinet Masr reported a net profit of EGP1.28 billion ($26.7 million), down nearly 12 percent from the same period in 2023.

Higher construction costs and cancellations weighed on earnings, though revenue climbed 7 percent to EGP4.8 billion ($100.2 million), helped by record sales and a surge in deliveries. Completed homes rose 86 percent to 521 units, signaling that demand remains firm despite pressure on margins.

Looking ahead, the developer plans to deliver between 1,500 and 2,000 homes, with 500 already handed over in the first six months of 2025. It has also locked in construction contracts worth $620 million for next year, providing visibility on its project pipeline in both Egypt and the Gulf.