Tatweer Misr: Building a Legacy Through Innovation, Education and Entrepreneurship: Interview

President and CEO of Tatweer Misr Ahmed Shalaby speaks about the leading real estate developer’s innovative outlook, and his own journey of honorable success. Covid-19 has taken a devastating toll on almost every economic sector.

However, property markets in Egypt continue to stand strong, with many real estate developers optimistic for the year to come. Tatweer Misr is one of such successful models that have made it through the year with a positive outlook; delivering numerous projects, and digitally transforming in order to meet the demands of the industry, all while finding innovative ways to keep its employees empowered and productive.

Business Today Egypt sits down with President and CEO of Tatweer Misr Ahmed Shalaby, who talks about the company’s projects and its accomplishments in 2020; the real estate, entrepreneurial and investment ecosystem in Egypt; and his own inspiring journey as an academic and entrepreneur.

Tatweer Misr has been in the market for six years, with three mega projects, over 8,000 clients, and 20,000 residential units of one million square meters sold, Shalaby says, adding that Tatweer has over 5 million square meters of land with a total investment exceeding LE 60 billion.

The leading real estate developer aims to build a legacy for future generations. Moreover, built on two main pillars: entrepreneurship and education, Tatweer Misr is making great contributions to the entrepreneurial ecosystem in Egypt; for which it was awarded the Entrepreneur Middle East’s Enterprise Agility Awards 2020.

 

Before diving into the dense topics, walk us through your morning routine. What activities relive your daily stress?

My morning routine is very simple, yet very valuable. My two main stress relievers are physical activity and cherished family time.

Therefore, I have become an early bird, waking up at 7 a.m. to get both done and to check the news whilst on my morning walk. I aim to have a balanced life, so that I can serve both my work and family fairly. And therefore, to function properly and remain satisfied, I always separate work and family. Let’s not forget that football holds a dear place in my heart, so if there is any match in the evening, you can find me glued to the TV.

 

From an acclaimed professor at Cairo University and ambitious entrepreneur to a renowned figure in the real-estate sector, your path has been one of continuous and diverse accomplishments. Walk us through this journey.

If I can say so myself, I believe that I have had a very interesting journey throughout my life. I always wore multiple hats. At a certain point in my life, I was teaching at Cairo University, worked in a consultancy firm, and started a new business with my colleagues.

My turning point was when I travelled to the U.S. to do my PhD at Cornell University. I met my great mentor, my professor, who taught me to consider and assess all options. I was able to experience a new lifestyle, think more innovatively and understand the value of networking.

I had the honor to lecture at Cornell University and Cairo University at the same time, spending the fall semester in the U.S. and the spring semester in Cairo. Back in 2006, I joined the real estate sector, which holds a special place in my heart because I believe that through real estate, you can transform visions into reality.

During that time, I was lucky enough to be appointed as the technical advisor for the minister of housing. Having assumed roles in both the private and the public sectors, I was able to understand and witness how each side works, which helped in the establishment of Tatweer Misr.

Tatweer Misr was then introduced to the market, which was a dream that came true. We aimed to introduce different concepts to the Egyptian market and to have Tatweer Misr’s projects as a legacy that we aim to leave for future generations.

 

 How did you juggle between being an academic turned into an entrepreneur?

Being one or the other throughout my journey was never enough. It was important for my personality to wear both hats at the same time.

Through being in academia, I was able to meet and communicate with fresh young minds; and through being an entrepreneur in the real estate sector, I was able to transfer my visions into reality.

 

The year 2020 was a difficult one from an economic standpoint. Several industries are facing difficulties as a result of remote working and safety measures; and the real estate sector is no exception. Tell us more about your deliveries this year in light of challenging work conditions.

[The year] 2020 was challenging for everyone.  All industries faced uncertainty; and at a certain point of time, they were at a standstill.

Real estate in particular faced tremendous setbacks given that it is an industry that relies on one-on-one interactions, but I believe that Covid-19 was the catalyst that accelerated the process towards digital transformation, which the industry was in need of.

Virtual property hunting and sales meetings were more welcomed and durable, ensuring a safe process for all. Of course, our annual plan experienced some turbulence; and we needed to take a detour to make sure that all our team members were safe and sound.

Being an optimist myself, I was still able to see the light at the end of the tunnel and was eager to fulfill our promises.

By the end of 2020, we are delivering a total of 1000 units in both Il Monte Galala and Fouka Bay; and our construction progress is going as planned in Mostakbal City’s Bloomfields, whilst maintaining all precautionary measures.

Regardless of all setbacks, I can very proudly say that Tatweer Misr was able to achieve almost 100 percent of our 2020 targets.

 

Throughout the past six years where Tatweer Misr has been in the market, you have brought new concepts and managed to make a real break-through. Can you give us a brief about your projects?

Each of Tatweer Masr’s projects has its own persona and caters to different consumers. The market is already saturated with many developers with a large amount of projects; and we always seek to not just be another real estate developer; we want to understand the consumer, build strong relations with them and create added value.

Designed to cater as both a first home and a second home, Il Monte Galala is spread across 2.5 million meters with a total of 10,000 units, six hotels that consist of more than 460 rooms and over 190 branded apartments.

With a total investment of LE 18 billion, Il Monte Galala is the first integrated development of Tatweer Misr and one of the largest mixed-use developments in Sokhna.

In addition to an assortment of innovative architectural design concepts in residential units, the focus of the development comprises a diverse range of lifestyle options that include facilities beyond beach life, such as a mountain park, cultural centers, hotels, business parks and a vibrant old town center built to emulate old Italian towns with cobble stones to include a wide range of F&B and retail options.

Another main highlight of Il Monte Galala is Omar Samra’s one-of-a-kind base camp for all the adventurous individuals. Mixing between vibrant north coast vibes and luxury, Fouka Bay is another milestone project of Tatweer Misr, located on the North Coast on around 250 acres with an extended one-kilometer long coastal front.

The project was launched in 2015 and will be executed on four phases with a total investment of LE 4 billion. With its unique master plan that ensures low building density and a waterfront for every unit, Fouka Bay has set a new standard of expectations in architectural design and lifestyle options that provides the perfect combination between white sands and crystal blue waters.

Fouka Bay is made up of 2500 units with four hotels consisting of over 380 hotel rooms and around 610 branded apartments. Like its counterpart in Sokhna, Fouka Bay exhibits a number of amenities and lifestyle options that are a trademark of Tatweer Misr’s offerings.

Given that the company’s foremost objective is building value beyond housing, this project includes hotels, serviced apartments, a diverse range of lifestyle activities  — be it on or off the beach—, a diverse array of F&B outlets, wellness, fitness and spa options.

Phase I of the project was successfully delivered during the summer of 2019; and by the end of 2020, Fouka Bay became a home for more than 800 families. Built to become ever changing and evolving according to its inhabitants, Bloomfields is designed by acclaimed Italian architects Gianluca Peluffo & Partners, together with the Egyptian renowned architect Raef Fahmy.

This new integrated concept of mixed-use real estate development will be built over an area of 415 acres and consisting of 10,700 units, with a total investment of LE 38 billion over a period of 10 years. The new project combines residential and commercial spaces, retail and business areas over 325 acres with an investment value of LE 28 billion, in addition to another 90 acres in the center of the project designated for an educational zone featuring six international schools and Egypt’s first International Branch Campus (IBC) which will host a number of internationally acclaimed universities, with an initial investment value of LE 10 billion.

Being a college town ensures it will always be flooded by youth and young entrepreneurs who continuously drive innovation and creativity within the community.

 

We are used to you saying that “the three most important things in development are location, location and location.” What informs the choice of locations in your projects? And where is Tatweer Misr heading to next?

I agree 100 percent that location is one of the main factors that the consumer bases their decisions on. Infrastructure is one of the most important aspects, predicting and laying the foundation for the future of the destination, including roads, transportation and job opportunities. Our land buying process is based on various factors.

[One factor is] consumer needs, [which include] what people are looking for in their first or second homes, and what the facilities they need are. When we answer these questions, we then start hunting for land that would be able to realise such needs.

[The other factor is] government’s vision. The outskirts of Cairo are getting much attention nowadays, such as the New Administrative Capital and Sheikh Zayed. That is why we are seeing many developers investing in such locations to fulfill the transition that most consumers will conduct.

At Tatweer Misr, we aim to be geographically widespread, present, and in line with the government’s great plans that we aim to be part of. For that reason, you can find Tatweer’s mark on Galala Mountains through the Il Monte Galala Project, in Ras El Hekma through its Fouka Bay project, and on the outskirts of the New Administrative Capital through Mostakbal City’s Bloomfields.

We also pay very close attention to what we can add to each specific location. We work on identifying any gaps in the chosen location, so we can stand out as we did in all our previous projects. In the upcoming years, we aim to expand in Sheikh Zayed and we are really excited to announce more information soon.

We can say that Tatweer Misr is a peoplecentric company. You have discussed several times the importance of teamwork to maximize productivity and enhance quality. Can you tell us how you work to strengthen the power of teamwork?

I firmly believe in the saying ‘People make the place’. People are the most valuable asset any business can have. At Tatweer Misr, we highly value teamwork and making sure that each individual feels included and empowered.

Being a team consisting of young and fresh individuals is aiding us in always being more innovative in our thinking and strategies; we also have women in leading positions stressing on the importance of gender equality within our company. Having a sense of belonging and ownership makes your team unleash their creativity and think innovatively.

Some tips and tricks that I have learnt and applied throughout the journey are: 1) the importance of fostering a culture where employees feel valued; 2) Happier employees do better and more productive work; 3)Prioritize solutions that help employees do meaningful work; 4)Believing that people, not software, are the final product. 5) Let your people guide the way.

By doing so, culture will thrive, innovation will flourish, and your team will be encouraged to create real change.

 

Being an entrepreneurial-based company, how are you contributing to supporting young individuals bring their written dreams to life?

I always take pride in being an entrepreneur. It makes the journey and the success story much more interesting and honorable. Ever since [we entered] the market, we have had two main pillars that we always want to associate ourselves with; and we work on filling any gaps that might be present.

These two pillars are entrepreneurship and education. With such high belief in the power of entrepreneurship, we have partnered with several entrepreneurial figures from various sectors, since the inauguration of Tatweer Misr back in 2015.

Take for example the following Egyptian entrepreneurs who have successfully and actively contributed to translating our visions into reality: Mona Hussein for interior design, by offering various different interiors catering to different tastes and budgets of Tatweer Misr’s residents; and Omar Samra, a one-of-akind adventurer and mountain climber who turned his adventurous personality into something much more than just a hobby and established Egypt’s first base camp in Il Monte Galala catering to the courageous and exploratory personalities through mountain climbing, hiking, zip lining and much more activities.

 

From your point of view, what does the Egyptian entrepreneurial ecosystem lack and how could this gap be filled?

I personally believe that the Egyptian entrepreneurial ecosystem lacks proper undergraduate and early education for rising entrepreneurs. We aim at Tatweer Misr to aid in filling this gap. Therefore, the heart of Bloomfields is centered on education, innovation and entrepreneurship.  

For this reason, 90 acres were designated to become an educational zone, with initial investments of LE 10 billion, which will feature Egypt’s first International Branch Campus (IBC) hosting six international schools, a number of internationally acclaimed universities namely; New Jersey Institute of Technology (NJIT), in addition to “GEN@Bloomfields,” which will be managed by the Global Entrepreneurship Network (GEN). It is the first regional innovation and entrepreneurship hub in Egypt, the Middle East and North Africa.

Lastly, we launched our very own innovation competition in 2017, enabling startups and young entrepreneurs to bring their innovative ideas to light.

Through the innovation competition, participants acquire recognition and support to kick off their ideas, receive training according to international standards and consultancy on development areas.

Saluting the year 2020 on a high note, I am very pleased to announce that Tatweer Misr has been awarded Entrepreneur Middle East’s Enterprise Agility Awards 2020 in recognition of its Outstanding Contribution to Entrepreneurship.

We were able to receive the award virtually during a ceremony that took place in Dubai, U.A.E, where leading figures and companies were awarded for their contributions in different fields. We are very thankful for this honorable award and we will remain dedicated to enhancing and supporting the entrepreneurial ecosystem in Egypt; and we aspire to do the same extendedly to support the whole region. 

 

You have touched on the local hospitality industry on several occasions, highlighting Tatweer Misr’s partnership with Kerten hospitality. Tell us more about this partnership.

Tatweer Misr collaborated with Kerten Hospitality. Kerten Hospitality is a division of Ireland-based Kerten, a private and independent investment firm dedicated to creating value and profitable growth in the hospitality sector, with their expanding brands backed by foreign investment.

The House Hotel and its sister brand Cloud7 Hotels can be seen as stellar examples of hospitality through The House Hotel Karaköy, The House Hotel Bomonti, The House Residence Bomonti and Cloud 7 Atakoy Marina.

Here at Tatweer, we have invested in the hospitality sector to bring in a total of six hotels, more than 460 hotel rooms and over 190 branded apartments in Il Monte Galala and four hotels, with over 380 hotel rooms and around 610 branded apartments, in Fouka Bay, both of which are subject to an increase.

The year 2019 represented a remarkable growth in tourism, with rates reaching those of 2010 which was a peak in the sector. How do you see the way forward and what is required from the Egyptian government to further support real estate developers in that regard?

The year 2019 witnessed a total of 13 million tourists and achieved a boom in revenues —since 2010—, with a total of $12.6 billion.

The optimist in me believes that 2019 was just the beginning, and that Egypt will always be an attractive destination for all tourists especially those coming from European countries. Forecasting that the number of tourists will continue to increase, it is crucial to have the readiness and the premises to welcome them; and this is where the real estate and hospitality sectors merge to provide the end-user with the ultimate experience.

The Egyptian government should facilitate and speed up the process by amending laws and regulations that fasten the process of international investments and all the paper work that needs to be done from the developers’ side.

Currently, Egypt is home to over 100 topnotch hotels consisting of 35,500 hotel rooms. Another 50 hotels are currently under construction, which will add 15,000 rooms to the industry.

 

While the entire market has been discussing property exports from a residential standpoint, you decided to take a broader look and discussed the importance of the private sector attracting FDIs for non-residential components. In your opinion, how can the private sector do that; and what support is needed from the Egyptian government to facilitate the process?

The private sector has a huge role in attracting investors from different sectors and of different interests. Egypt as a country is a very attractive market for potential foreign investments due to the fact that we have gaps in different sectors, namely the education and healthcare systems.

The education sector needs a total of LE 400 billion to build 40 universities to fill the gaps between supply and demand. Attracting investors for non-residential projects is a form of killing two birds with one stone, as it serves the developer’s objectives, as well as helps the country in attracting foreign direct investments, which is a win-win situation for all.

The Egyptian government is taking the right steps to attract investors with regards to laws and regulations. What the government might start focusing on during the next period is the simple power of marketing. We should start marketing Egypt as the destination for all investors.

With the rise of 4th generation cities, chances and opportunities for investments are increasing and we should, both the private and public sectors, actively market [Egypt as] a destination that would one day be a home for all investors.

 

The year 2021 is expected to mark the beginning of life at new cities; we have also witnessed a few real estate developers delivering units at the New Administrative Capital. What are the essential aspects required to ensure smooth settling into new cities?

According to the government, we should be witnessing trial operations in the New Administrative Capital, New Alamin, as well as Galala City during the first half of 2021.

This proves the eagerness and the tremendous progress the government has been exerting to have the area ready to welcome its new residents and investors. Individuals are expecting first-handedly the experience of 4th generation cities through smart infrastructure, to facilitate the commute between old and new cities, and the operations of all non-residential components, which ensures the smooth settling of all residents.

It is important that the non-residential components start operating to actually make the new city livable. Each new city will serve the area in which it is located, producing a comprehensive development throughout the country, a development that should have been initiated earlier to accommodate the subsequent population growth, thus providing the appropriate housing and living experience.

 

Tell us about the importance of non-residential components; their impact on development; and the economic value they create.

The importance of non-residential components can be viewed from two different perspectives, both of high value and influencing the economy. From a resident point’s of view, non-residential components in real estate projects are indispensable, they actually ‘create the life’.

Whilst property hunting, individuals are looking for the benefits they get beyond the home. Some questions they think of are: Where is the nearest F&B outlet? The nearest pharmacy or convenience store? The nearest school for my kids? Etc.

The answers to all the aforementioned questions are what they base their decisions on. That is why at Tatweer, we invested in the non-residential components in each of our projects to meet the clients’ needs.

In Il Monte Galala, we have the base camp catering to adventurous individuals, the six hotels with different personas and the F&B outlets. In Fouka Bay, we have the beach entertainment, we have the supermarkets, the different F&B choices and the four hotels that cater to different characters.

Lastly, in Bloomfields, an educational zone is dedicated in the center of the project to provide Bloomfields and neighboring residents with high quality education.

Given the above-mentioned importance of non-residential components to residents, this proves why they are a sufficient and safe form of investment for foreign investors.

The Egyptian market is home to great investment opportunities for interested foreign investors; our geographical location helps us be a center point or a hub for all neighboring countries to invest in.

Non-residential components such as education and hospitality are industries that need the quality that internationally acclaimed brands provide to be present on Egyptian lands.

Egyptians always travel outside the country to experience the high quality and luxourisness they find in neighboring countries, but why don’t we shift things a bit and actually welcome these neighbors to us?

That’s why at Tatweer Misr we aimed to collaborate with New Jersey Institute of Technology (NJIT) as well as Global Entrepreneurship Network (GEN) for our international Branch Campus in Bloomfields, and Kerten Hospitality to manage all our hotel outlets.

For the Egyptian economy, international investments also provide several job opportunities, which helps us decrease our unemployment and poverty rates simultaneously.