Talaat Moustafa: Real Estate Demand will Continue for 30 Years to Come

Signing ceremony of the Digital Transformation Partnership (Talaat Moustafa Group (TMG))
Signing ceremony of the Digital Transformation Partnership (Talaat Moustafa Group (TMG))
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Talaat Moustafa: Real Estate Demand will Continue for 30 Years to Come

Signing ceremony of the Digital Transformation Partnership (Talaat Moustafa Group (TMG))
Signing ceremony of the Digital Transformation Partnership (Talaat Moustafa Group (TMG))

Egypt's real estate sector contribution to the gross domestic product (GDP) would be stable at 17 percent in 2019, and for the 30 coming years, the sector is not likely to collapse or enter into “real estate bubble”, according to CEO of Talaat Moustafa Group (TMG).

"There won’t be any real estate collapse or real estate bubble," Talaat Moustafa said at a press conference in Cairo during the signing of a partnership agreement with Huawei Technologies for smart cities.

The real estate market in Egypt has been affected by the decline in purchasing power as a result of the rise in prices since the floating exchange rate in November. However, real estate companies maintain an increase of 10-20 percent per annum.

The main concern is to provide luxury housing units of villas and apartments, for people with the highest income, and units for middle-class valued at no less than $56 thousand dollars.

Asked by Asharq al-Awsat about his predictions for the real estate sector and its share in the GDP, Mustafa indicated he expects its stability at 17 percent this year, like last year, but the sector's direct and indirect contribution to GDP will reach 29 percent.

Officials have been concerned with the increase of the sector’s share in GDP, fearing a real estate bubble, which will be reflected negatively on the rate of economic growth.

However, Moustafa explained that the population of the age group between infants and 30 years represents 65 percent of Egypt’s population, meaning that when they get married, they will form 32 million families over the next 30 years, meaning 32 million housing units, after excluding the mortality rate and the percentage of housing increase.

He added that with the government regulating the slums, the annual demand will be at least one million units."Are we currently offering a million housing units (yearly)? … Then there won’t be a real estate bubble… There won’t a real estate collapse.”

The market needs new methods of payment that meet the current levels of income, so there are long-term repayment terms with appropriate interest, pointing to proposals to support interest rates through sources outside the state budget, in the real estate sector, according to Mustafa.

The Group signed a partnership agreement with Huawei Technologies, which aims to start the digital transformation of living for the first time in Egypt and the Middle East. This collaboration paves the way for a strategic partnership for developing TMG’s projects using Huawei’s latest digital technology.

The agreement comes as the first step towards building a strong partnership between the two sides. Huawei will start providing its innovative technologies in the group’s upcoming projects, in order to transform them into smart cities.

Huawei’s regional enterprise president Michael Li sees the partnership as an initial step toward the advancement of urban communities in Egypt, by transforming the cities and projects of Talaat Moustafa Group’s into smart cities.

Huawei’s Public Affairs and Strategic Communication Director, Hala Aranda, told Asharq Al-Awsat that the company has established about 160 projects in 40 countries and deeming that the collaboration with Talaat Moustafa Group to create smart cities in Egypt for the first time will pave the way for creating smart cities in several new regions.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.