Orascom, owned by Sawiris family, plans Egypt cutback after $2.6 billion Saudi deal approval

Key Points

• The Sawiris-owned firm plans to cut domestic projects to a third by 2026, prioritizing opportunities in Saudi Arabia and the UAE.
• The company has received approval to begin a $2.6 billion EPC contract for Saudi Arabia’s Qurayyah IPP expansion, adding 3 gigawatts of power capacity.
• Orascom’s MENA revenue fell 20% to $1.08 billion, but its BESIX unit saw backlog growth of 50.1% to €8.1 billion ($8.6 billion).

Orascom Construction, the engineering, and construction giant controlled by Egypt’s richest family, is scaling back its operations at home as it shifts focus to international markets. The company, owned by the Sawiris family, plans to reduce its domestic projects to just a third of its portfolio by 2026, prioritizing opportunities in the United Arab Emirates (UAE) and Saudi Arabia.

The decision comes as Orascom moves forward with a major project in Saudi Arabia. It recently received approval to begin work on a $2.6 billion engineering, procurement, and construction (EPC) contract for the expansion of the Qurayyah Independent Power Plant (IPP).

Speaking on the shift in strategy, CEO Osama Bishai said Orascom is focusing on projects backed by foreign currency funding and supported by international financial institutions. He also emphasized the need for contracts that account for inflation and unexpected cost increases.

While collecting payments from Egyptian government entities has been difficult, Bishai noted that authorities have made progress in settling overdue bills, improving cash flow for companies like Orascom. Still, the company is being selective about local projects, taking on only those that offer financial stability.

Orascom’s MENA revenue drops 20 percent

Founded in 1976 by the late Egyptian tycoon Onsi Sawiris, Orascom Construction has built a strong presence across the Middle East, Africa, and the U.S. The company remains under the control of billionaire brothers Nassef, Samih, and Naguib Sawiris, who together hold a 54.86 percent stake—equivalent to 60.48 million shares.

Nassef, Egypt’s richest man, owns the largest share at 36.52 percent, while Samih and Naguib hold 12.5 percent and 5.84 percent, respectively. Earlier this year, the family received a combined interim dividend of $13.3 million from their majority stake.

Financially, Orascom Construction has held steady despite a slight dip in revenue. The company reported $2.32 billion in revenue for the first nine months of 2024, a 1.92 percent decline from $2.37 billion the previous year. The drop was mainly due to a nearly 20 percent decline in revenue from the Middle East and North Africa (MENA) region, which fell to $1.08 billion and now makes up 47 percent of total revenue.

Meanwhile, BESIX, one of Orascom’s key units, delivered strong results. Its backlog surged 50.1 percent year-on-year to €8.1 billion ($8.6 billion), while adjusted EBITDA reached $119.4 million, and adjusted net income stood at $86.3 million, reflecting the company’s resilience.

Orascom powers up Saudi energy growth

Orascom’s latest contract in Saudi Arabia, awarded by Hajr Two Electricity Company—a consortium including ACWA Power, Saudi Electricity Company, and Haji Abdullah Alireza & Co. Ltd.—will add 3 gigawatts of combined-cycle gas-fired power generation capacity. The project also includes a 380-kilovolt electrical substation and provisions for future carbon capture, aligning with Saudi Arabia’s drive for cleaner energy.

With a power portfolio exceeding 30 gigawatts across the Middle East and Africa—including two 4.8 GW plants in Egypt—Orascom Construction continues to expand its role in the energy sector. The Qurayyah IPP expansion strengthens its presence in Saudi Arabia and supports its broader strategy of geographic diversification and sustainable energy investment.

Backed by decades of expertise, Orascom Construction remains a key player in shaping the region’s energy infrastructure. Its latest contract further cements its position in the Gulf’s competitive energy market, reinforcing its commitment to large-scale, high-quality projects.