Six of October Development and Investment Company (SODIC) has entered into a revenue-sharing agreement to establish a residential tourism project on Egypt’s North Coast. The project, to be developed on two adjacent plots spanning approximately 440 acres, is expected to generate contracted sales reaching 80 billion Egyptian pounds over an 11-year period.
The agreement marks a significant step for SODIC, a company listed on the Egyptian Exchange (EGX), as it aims to expand its portfolio and capitalize on the country’s growing tourism sector. The project’s strategic location on the North Coast, known for its picturesque beaches and scenic landscapes, makes it an ideal destination for residential tourism.
In the first quarter of 2023, SODIC reported lower consolidated net profits attributable to owners, amounting to 187.31 million pounds compared to 226.23 million pounds in the same period of the previous year. The decline in earnings per share (EPS) was evident, with a decrease from 0.64 pounds per share in Q1 2022 to 0.53 pounds per share as of March 31, 2023. However, total operating revenues experienced a significant surge, rising from 1.19 billion pounds to 1.49 billion pounds.
The revenue-sharing agreement represents a strategic move for SODIC to drive growth and profitability. By capitalizing on the potential of Egypt’s North Coast as a desirable tourist destination, the company aims to attract buyers and generate substantial sales over the project’s lifespan. As the Egyptian tourism industry continues to recover and thrive, SODIC’s venture into the residential tourism sector aligns with the country’s broader efforts to promote investment and economic development.
