Orascom Pyramids Entertainment, a subsidiary of Orascom Investment Holding Company, plans to open its Giza Plateau development project in the first quarter of 2024, instead of December, after completing some remaining procedures, especially the opening of the Fayoum Gate.
Amr Gazarin, Executive Chairperson of Orascom Pyramids, told Daily News Egypt that the company has completed about 95% of the construction work for the project so far, expecting to reach 100% by the end of this year, with an expected investment cost of around EGP 1bn.
The company relies on 60% bank loans and 40% self-financing for the project’s development. It has already obtained two loans worth approximately EGP 400m from the Societe Arabe Internationale De Banque (saib) and is negotiating for a new facility whose value will be determined based on its needs. The funding is likely to come from the same bank, with guarantees issued through Orascom Investment Holding. The National Bank of Egypt has also signed a sponsorship agreement with the company to support the project.
The new loan will primarily be used to establish a permanent hall in the Pyramids with a capacity of up to 15,000 people for concerts and cultural events held in the area.
Gazarin said the development plan is progressing according to an ambitious vision aimed at achieving sustainable development for the Giza Pyramids visitation area. He confirmed that the company has completed the construction work to develop the area, and once it is fully operational, it will transform into a global visitation area.
The number of visitors to the Pyramids area currently reaches about two million, and Gazarin expects it to reach approximately three million visitors, with the possibility of surpassing this number next year. According to the latest data, 60% of visitors are foreigners, and 40% are Egyptians, which is contrary to the usual proportions, as Egyptians used to dominate the larger share of visits.
The company has not made profits from the project so far and has incurred losses for two years. However, Gazarin expects to reach the breakeven point by the end of this year and achieve profitability next year. The main revenue will come from leasing the shops in the area, which have not yet been opened and are associated with the project’s opening.
Gazarin stressed that the revenues from the tickets for entering the Pyramids are still entirely in the hands of the state. He explained that the contract between the state and Orascom was in favor of the state, and the company’s sources of income come from celebrations and revenues from the leased shops.
The company is open to cooperating with the government on archaeological projects to support the Egyptian tourism sector, but it gives priority to completing the development project of the Giza Plateau first.
Gazarin said that the development of the area since 2018 reflects the political leadership’s support for the private sector as a fundamental factor in achieving comprehensive development. He pointed out that the presidency aims to transform the Pyramids area and the Grand Egyptian Museum into the capital of world tourism, as the Pyramids area is the biggest archaeological treasure of the Egyptian state.
