Face of Business Face of business

Al Ahly
Sabbour CEO
on Covid-19
and the Real
Estate Sector
Ahmed Sabbour speaks about the company’s new
approaches to deal with the impact of COVID-19 and how
the latter have reflected on market dynamics.

O
ne of the first engineering consultancy firms in Egypt,
Al Ahly Sabbour is a leading real estate developer with
a profile of +20 commercial, residential and touristic
projects.
CEO Ahmed Sabbour speaks to Business Today Egypt about how
the company has handled the impacts of COVID-19 pandemic, and
his insights on the real estate sector in the midst of the ongoing
crisis.

54 August 2020 www.BusinessTodayEgypt.com www.BusinessTodayEgypt.com August 2020 55

Face of business
How do you see the effect of COVID-19 on
the real estate sector?
COVID-19 has affected entire economies
and their growth around the world, impact-
ing all industries, not only real estate. We
are currently witnessing a period of expected
slow-down where customers are adopting a
wait-and-see attitude, which is normal during
times of uncertainty.
However, developers are not expected to
wait until the picture is clearer, we have to
be proactive and engineer plans that serve
not only our initial targets, but also ones that
are in favor of keeping that sector, which
comprises almost 20 percent of the country’s
GDP..
Moreover, the COVID-19 outbreak will also
have a long-term effect on the products that
customers are seeking, which is why develop-
ers now are working on ways to incorporate
more work-from-home options in their units,
enabling their infrastructure to accommo-
date the needs of this new trend.
How is Al Ahly Sabbour dealing with the ef-
fects of the COVID-19 outbreak?
I’ve always believed that with challenges
comes a great opportunity to press a refresh
button and make lasting changes that influ-
ence the way we make business. For instance,
we at Al Ahly Sabbour have made a great deal
of changes to the company’s sales and mar-
keting plans. We are currently focusing on
internal marketing and sales through online
operations, employing new techniques and
developing brand new approaches, while
amplifying marketing campaigns on various
social media outlets, in order to reach our
target customers, and also as an alternative to
local and global exhibitions that have been
canceled.
Have current circumstances affected sales;
and if so, in what way? Do clients and inves-
tors still view the real estate sector as promis-
ing?
We have been closely monitoring the im-
pact of this crisis on our sales, which is cur-
rently experiencing a slower-than-usual pace.
However, we have also noticed an increased
demand for our most recent project, KEEVA
in 6th of October city, as well as second-home
units, especially ones in the North Coast. I be-
lieve this is a sign that despite the current cir-
cumstances, market needs remain potentially
the same. Real estate has always been Egyp-
tians’ safest form of investment, especially
during times of uncertainty; and I don’t see
56 August 2020
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“
that changing anytime soon.
What is the effect of the current situation on
construction and delivery time?
While the situation remains unstable, how
the market reacts is what affects our dynamic.
In this respect, the rate of construction is our
Real estate has always
main concern; of course it experienced tur- been Egyptians’ safest
form of investment, es-
bulence, especially at the beginning of the
crisis, on account of reduced working hours;
however, we are determined to continue with
pecially during times of
the scheduled development processes while
committing to the government’s regulations.
We are also in constant communication with
our contractors, engineers, and consultants
to ensure our workers’ safety as well as experi- soon.
“
uncertainty, and I don’t
see that changing anytime
ment with efficient ways to mitigate against
the effects of this pandemic on our plans and
targets.
Has the pandemic had an effect on property
prices?
At the start of 2020, grade A & B apartment
prices were projected to see a 5-8% increase,
while villas were expected to increase by 10-
15%. However, the price of construction ma-
terials has seen a decline recently, including
steel, for example, which has the potential to
ensure price stability of the final product.
How has Al Ahly Sabbour worked on incorpo-
rating virtual services and Augmented Reality
in order to adjust to lockdown regulations,
changes in the market and customer behavior
during the recent period?
Adapting to the changing environment
is the only way developers are expected to
exceed customer expectations and emerge
stronger after this crisis, which is why we are
investing time, money and energy towards
implementing new marketing strategies in or-
der to best use the tools at our disposal. We
have also developed and recently launched a
new tool, The Virtual Sales Office, to ensure
that we remain accessible to our customers
and provide them with services that suit their
needs during these times.
What is your view on the future of real estate
regarding working from home options, pro-
viding the necessary infrastructure for robust
businesses to function remotely, and the ef-
fect of Covid-19 on demand for administra-
tive and commercial real estate?
In order to ensure that their agendas are
compatible with the post COVID-19 market,
real estate developers must offer products
that cater to the needs shaping our “new nor-
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Face of business
mal.” Customization is key; having a residen-
tial area with an ability to be easily divided
into living and working areas, as well as ef-
ficiently using all space available, is going to
be a top customer priority. Another crucial
element is investing in state-of-the-art infra-
structure that enables high-speed Internet,
cyber-security, and 24/7 maintenance for cus-
tomers working remotely.
As for administrative and commercial real
estate, it is too soon to predict the effect on
their demand; however, there is no doubt that
office spaces as we know them will definitely
see a profound change. Business owners will
seek office spaces where they can ensure em-
ployee safety and well-being; meetings will be
held in open spaces and rooms will include
less employees.
While growth in e-commerce was already
underway before COVID-19, it is expected to
flourish in the years that follow, causing a rise
in investments in logistics space to cater for
the increasing demand. However, customers
will remain in need of physical commercial
destinations; shopping is regarded in our
society as a recreational activity, one where
people pursue valuable experiences, which
means developers will have to reimagine and
repurpose existing spaces to accommodate
changes and provide a better value proposi-
tion.
Do current circumstances and lockdowns that
are applied everywhere have an effect on ex-
porting real estate?
Current circumstances caused major exhi-
58 August 2020
bitions to cancel this year’s editions, ultimate-
ly reducing our exposure to target customers
around the world. But when it comes to ex-
porting real estate, Egypt is still in the initial
phase in comparison to other countries in the
region; the number of foreign homebuyers is
not enough for us to assume that it will cause
a major problem to the sector’s dynamics.
While Egypt has excellent benefits that devel-
opers capitalize on when marketing for their
products abroad, it’s still too early to have
fears or concerns related to a dramatic effect
of COVID-19 on that branch of the sector.
What is the role of the private sector and its
responsibility towards communities during
these times? Tell us about Al Ahly Sabbour’s
contribution to dealing with the crisis.
I believe the private sector has a major role
towards communities in times of crises, which
is why Al Ahly Sabbour has made it a prior-
ity to take a number of initiatives that pro-
vide support to communities affected by the
COVID-19 outbreak. We joined forces with
Tahya Misr Fund to provide medical supplies
to combat COVID-19 and support 30,000 low-
income families. We have also launched the
Ehna fi Dahrak (We Got Your Back) campaign
in cooperation with the Ministry of Health
to donate 12000 Ramadan packages, with
a total value of EGP3 million, to families of
healthcare workers treating COVID-19 cases
across isolation hospitals in 25 governorates.
Do you think things will be better during the
second half of 2020?
I’m an optimist and I think that there’s
room for a gradual improvement following
the measures taken by the Central Bank to
overcome the economic repercussions re-
sulting from the COVID-19 outbreak, which
included providing EGP50 billion for real
estate financing for medium housing, a 3%
interest rate reduction, and other measures
that aim at encouraging Egyptians to invest
in real estate.
How do you see Al Ahly Sabbour’s prospects
in both the short and long term? Tell us more
about Al Ahly Sabbour’s future plans for ex-
pansions.
We have a set of ambitious plans and strat-
egies which we look to put into action over
the upcoming period, including expansion
in many areas of significance like the New
Administrative Capital where we are arrang-
ing a partnership with NUCA for a 200-acre
www.BusinessTodayEgypt.com
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project, New Alamein, Upper Egypt, and the
Delta region where we are looking to devel-
op in El Minya. On the other hand, we have
recently acquired a 15-acre plot of land ad-
jacent to our coastal project of Amwaj, the
fourth phase of which is to be delivered later
this year.
Tell us more about Al Ahly Sabbour’s latest
project, KEEVA.
Strategically located in 6th of October City,
KEEVA overlooks South Dahshour Road, is
two minutes away from 26th of July Corridor,
and around eight minutes away from Mall of
Egypt. Spread across 144 acres, and expected
for delivery by the second half of 2023, KE-
EVA will see a total of EGP5 billion in invest-
ment.
The project is the result of an agreement
between Al Ahly Sabbour and NUCA, stat-
ing that Al Ahly Sabbour will possess 59.5%
of the project, while 40.5% will be owned by
NUCA. The project, which will be delivered
over four phases, offers a total of 1138 units;
villas start at 260m2 and 360m2, townhouses
stand between 225m2 and 265m2, while resi-
dence apartment sizes range between 120m2
and 190m2. Al Ahly Sabbour is also partner-
ing with the National Bank of Egypt through
an Escrow account, where the bank will act
as the project’s account manager by provid-
ing all banking services related to the project,
as well as arranging the financing needs for
the development in order to achieve on-time
targets. The bank will also be responsible for
organizing the deposited revenues and their
distribution across the project’s partners.
With a design that combines classic and
contemporary architecture, the project is
comprised of multi-storied, low altitude build-
ings (G+2) where all units have a front view.
Moreover, the efficient master plan is de-
signed to employ a concept called “Biophillic
Design” where natural elements are in har-
mony with and integrated in buildings. This
is exhibited through large glass facades that
invite sunlight and greenery from the outside
in, providing a comfortable and serene envi-
ronment. Moreover, 18% of the project’s area
has been allocated to buildings’ footprint,
while green spaces, gardens, water features,
entertainment areas and roads take up 82%.
KEEVA is set to provide residents with all ele-
ments of stability as it comprises commercial,
infrastructural, and entertainment compo-
nents, making this projects ideal for families
seeking tranquility, comfort, and security.
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