Dubai: Dubai-based diversified business conglomerate Majid Al Futtaim Group (MAF) will invite bids for its 4.4 billion Egyptian pounds ($772 million — Dh2.83 billion) Mall of Egypt project, one of the biggest shopping centres in North Africa, in November, according to a MAF official.
Ski Egypt, an indoor skiing facility similar to the one in Mall of the Emirates, is planned in the 160,000 square metre mall in Cairo, confirmed Richard Reid, Development Director of Mall of Egypt and Senior Vice President of Development in MAF Properties.
With 350 stores, a 17-screen cinema complex, Magic Planet, an outdoor plaza, dining, and skiing facility, the mall will target customers in the residential areas of Cairo's growing suburbs and potentially tourists, Reid added.
The project is now in the detail design phase that will be completed in October before the contract for the main building goes to tender in November, he said. MAF has two new sites planned as shopping malls in Cairo at various development stages, Reid noted.
Egypt has emerged as a booming retail destination attracting millions of dollars in investment from GCC countries.
"It's been in the last two years that the retail market looked quite seriously at Egypt," he said. "It's certainly on the radar for international retailers."
UAE developers Emaar Properties, Al Futtaim Group and Damac Properties are investing in major projects in North Africa's booming economy.
In a recession-riddled global economy, Egypt is a safe bet for GCC investors, analysts say.
Secure investment
"For GCC businessmen, it is more secure to invest in an Arab country because of the fluctuation of the dollar and the drop in the euro, whereas the Egyptian pound has been stable for four years against the dollars. It is less risky." said Sahar Nazmy, research analyst for the Mena region at Euromonitor International in Cairo.
"They talk the language, understand the culture and have [Egyptian] government back up to attract them to the country," he said.
Nazmy added that GCC investment represents a "major chunk" of Egypt's foreign investment particularly in retail, real estate, and the stock market.
Reid expects the construction to have a "big multiplier effect" for the Egyptian economy. The project is set to hire 7,000 Egyptian labourers through a local contractor and the mall retailers to employ "thousands of people," he said.
Egypt, the most populous Arab country with over 80 million people, promises investors a growing and robust market, said Nazmy.
Reid added that Cairo's large urban population of 20 million, the rising standard of living and disposable income, and the small number of malls attracted MAF to start another project in Egypt.
There is lots of potential because the retail market is still "immature" and there is room for more competitors, Nazmy noted.
London-based design firm RTKL, the architects behind Bahrain's City Centre and Mirdif City Centre, are commissioned to design Mall of Egypt.
It will have three distinct architectural areas that draws references from Egypt, Reid said.
By Deena Kamel Yousef Staff Reporter
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