Can you tell us more about the history of Raslan group? How did the start came?
Raslan group started in 1975; we started with a construction company during President Sadat era, Egypt was really open to establishing different projects at that time, our company was active in different governorates in Egypt; afterwards we opened an office for consultancy in Saudi Arabia; we had two branches in Riyadh and Gedda. After achieving considerable success in Saudi Arabia, in 1995 we opened Raslan Air, which was our first Airline company here in Egypt; however due to a couple of terrorist acts, that affected tourism in Egypt, we had to close it. Another type of business, we invested in is chemical products; a couple of years ago we established a factory for chemicals. With all this business diversity, I would say that our main business line is real estate.
Since we established Raslan group and until today our main focus is real estate. We established various compounds, apartment complexes and shopping malls in different districts in Egypt; Maadi and New Cairo were two of our top destinations. Another important project we have is our mineral water factory, Aqua. As for hotel business, Raslan group did previously establish hotels in Sharm El Sheik and currently we are working on building a hotel in Hurghada.
Weren’t you hesitant to take such a step and start building a new hotel in Hurghada, while some hotels are actually closing?
Sure I was hesitant, however, Raslan group, did actually start this project a couple of years ago but due to unstable political circumstances after the January 25th Egyptian Revolution, we had to freeze constructions. Currently, we are resuming work; I am pretty optimistic that the tourism sector will eventually pick up.
Since real estate is your main line of investment, in your opinion is real estate investment, the safest kind of investment here in Egypt, especially during the current economic conditions in Egypt?
Real Estate is actually the safest kind of investment, not only in Egypt, but worldwide; there is actually a famous motto that says, “If there is blood in the street, you buy a property”, which indicates that no matter how bad the circumstances are in any country, it is always safe to invest in real estate. Real estate compared to other types of business investment is safe and guaranteed; for example, stock market can be unstable during economic instability; factories and companies can close during recessions; however, if you invest in real estate, most likely the assets you buy will experience a raise in price or at least it stays the same; in other words, real estate does not lose its value over time, which makes it the safest kind of investment. I would actually say that the real estate sector in Egypt did flourish and it is experiencing unprecedented success.
You are the chairman of “Canada Egypt Business Council” (CEBC), can you please tell us more about it and about its objective?
I would say that today’s commercial ties between countries are often the cornerstone, on which other links, whether cultural or political, rely, that creates a crucial role for Non-Governmental Organisations, such as the Canada Egypt Council, to ensure that these important bilateral ties are well looked after. The main job of the council is to act as a primary facilitator on behalf of the business communities in both Egypt and Canada, helping them to understand one another, communicate openly and achieve the right access and support to achieve successful business together.
This is the basic objective of the CEBC and one that we have translated into a number of core goals for our organisation.
The council also aims to encourage and facilitate a business lobby; that means acting as vehicle for the private sector to formulate its concerns, developing these into clear messages that are lobbied with the relevant authorities.
Another prime objective is to facilitate networking; through our events and activities we bring together members of the Egyptian and Canadian business communities to create endless opportunities of interaction; also the council serves as a ‘two-way door’ between the Egyptian business community and Canadian Government resources; we also support Canadian companies and delegations looking for an entry point into the Egyptian market, and do the same for their Egyptian counterparts seeking markets in Canada.
I am also acting as the chair of another council, which is the Egyptian Council for Sustainable Development, which acts as a facilitator between Egypt and between countries that do not have joint business councils with Egypt; we have actually succeeded to sign cooperation agreements with almost 14 countries mostly in Eastern Europe, including Georgia, Armenia and Slovenia.
As you have mentioned, Raslan group is active in various business sectors within the Egyptian market, upon which criteria you choose to invest in a certain business sector?
Well this mainly depends on the chances available within a certain market sector; however, certain investments might take place according to the market needs. For example, we had previous investments within the education sector, which is actually a sector that is in deep need for ongoing investments. We have actually started investing in the education sector, 15 years ago, at that time we had really few international schools in Egypt; I decided to cooperate with a businessman who had a vision to build an international school based on the American System; I actually did the necessary construction related to the project and it was a major success. Soon, we will do another project within the education sector; we are currently working to finalise the idea.
How do you see the Egyptian economy and its recovery over the coming period?
There is no doubt that the Egyptian economy is going through a tough period; I would actually say, from the point of view of an investor, that the economic situation is closely related to the political circumstances; unstable political circumstances definitely discourage investors to invest; for example, during the ruling of Muslim brotherhood, political instability negatively affected investment opportunities. Another important obstacle to having more investment opportunities is bureaucracy; we need to facilitate the procedures for investors who have intentions to invest in Egypt. Corruption is another challenge, we need close monitoring in various entities in Egypt in order to eradicate corruption, which is prevailing in Egypt. In my opinion, the current political circumstances in Egypt is heading towards more stability, which I believe will positively influence the economic situation as more investors will be eager to invest in various sector, within the Egyptian economy.
