Saudi Arabia’s Sumou Holding, a major real estate investment and development firm, has entered into preliminary negotiations to acquire Egypt’s semi-governmental developer, Madar for Investment and Urban Development. The potential acquisition, which could be valued at as much as $3.5 billion, signals a significant move to deepen investment ties between the two MENA economic powerhouses.
High-Level Strategic Negotiations
According to sources familiar with the matter, intensive negotiations are currently underway between the two companies and the office of the Egyptian Prime Minister to finalize the deal’s value and structure. There is reportedly strong interest from both the Egyptian and Saudi governments to see the transaction succeed, reflecting a mutual desire for cross-border economic collaboration. Should the full acquisition not materialize, an alternative scenario involves a joint cooperation between Sumou and Madar to develop the remaining lands in Madar’s portfolio under a revenue-sharing model.
Madar’s Vast Real Estate Portfolio
The high valuation of the deal is attributed to Madar’s extensive and strategic land holdings. The company owns approximately 11,000 acres in the rapidly growing East Cairo area, near the New Administrative Capital. Madar is the master developer for two major urban projects: “Mostakbal City,” which spans nearly 5,200 acres, and “Mada City,” covering 5,800 acres. While about 40% of the total area is already under development, the remaining 60% presents a massive opportunity for future projects.
Deepening Existing Partnerships
This potential acquisition builds upon an existing relationship between the two entities. In July, Madar signed an agreement with Adeer International, a subsidiary of Sumou Holding, to develop the “Boulevard” project. This mixed-use development, with investments exceeding EGP 70 billion, is located within Madar’s land bank. The move aligns with Sumou Holding’s previously stated plans to invest approximately EGP 26 billion in the Egyptian market over the next five years, underscoring its long-term confidence in the country’s real estate sector.
About Sumou Holding
Sumou Holding is a world-class holding group and institutional investor headquartered in Saudi Arabia. Established in 2008, the firm manages a diverse portfolio of companies with interests in real estate, construction, logistics, hospitality, and energy, with a strategic focus on catalyzing growth in key economic sectors.
About Madar for Investment and Urban Development
Founded in 2006, Madar is a leading Egyptian master developer specializing in transforming undeveloped land into fully-fledged smart cities. As a joint-stock company, its shareholders include major Egyptian financial institutions such as Banque Misr, the National Bank of Egypt, the National Investment Bank, and the Arab Contractors company.
Source: Fintech Gate
