Egyptian investments in cheap houses in Romania

Orascom Development Holding AG a company led by the tycoon Samih Sawiris wants to spend 5 billion Egyptian lyras ( 913 million dollars) for the construction of cheap houses in Europe and Middle East with the purpose of generating a stronger growth rhythm, Bloomberg says. The company aims at Romania, Turkey and Iraq, Sawiris says. The group has already invested one billion Egyptian lyras to build houses in Egypt. Orascom Development bought 2 million square metres of land in Romania for a residential park with reduced costs and will start to sell houses before the end of the year, Sawiris said. "Our projects have as an objective the increase of demand over the next ten years", Sawiris said, who controls almost 60% of the company. "Investment on short term presents higher risks due to the exposure to the market decline". The company, which developed especially touristic resorts launched a real estate division low cost at the end of 2006. "The business presents profitability on a long term" Sawiris said. He estimates that this division will contribute up to 20% at the income of the group over the next two years, the double of the present level.