The leading global developer Orascom Development Holding AG (Orascom Development) (ODHN.CA) has been reducing its local receipts deposited in the Egyptian Exchange since March 10, cancelling around 524.9 local deposit receipts. This has made the traders in the market acknowledged that Orascom Development is likely taking gradual steps towards exiting the Egyptian market, for the firm currently has around 179.017 million local deposit receipts only, according to the closing session of March 26th.
Despite the fact that the amount of the canceled local deposit receipts is much lower than the company’s current reserves, the cancelation procedures have risen doubts among traders and market experts whether the Egyptian market would witness a further gradual withdrawal from by Orascom Development or not.
Orascom Development Holding is a Switzerland-based developer of integrated towns, with a foothold in Egypt and the Middle East. It develops fully-integrated towns, offering hotels, private villas and apartments, leisure facilities and marinas, along with all related facilities and supporting infrastructure.
As of 31st December, 2009, the company had a number of subsidiaries in Egypt, Jordan, Mauritius, Morocco, Oman, Switzerland, United Arab Emirates, Montenegro and the Cayman Islands.
ODH has three developments in Egypt, home country of its chairman Samih Sawiris; El Gouna in Hurghada, Taba Heights in South Sinai and Haram City, a mid-price housing project west of Cairo.
El-Gouna, a luxury waterfront resort, performed well, the company said. But recent unrest on the Sinai peninsula — including a spate of tourist kidnappings — had a negative impact on occupancy at its Taba Heights resort, close to the Israeli border.
