GROWTH UNDER PRESSURE

As it approaches its centennial, Hassan Allam Holding is today led by third-generation Co-CEOs Hassan and Amr Allam. Amid shifting market dynamics, their focus is firmly on accelerating regional growth, supported by a project backlog exceeding $5.8 billion.

- RAWAN HASSAN

Despite ongoing global economic headwinds, Egypt has recently moved to localize critical commodities and products across its industrial and agricultural sectors. These pressures, combined with reduced Suez Canal revenues, have strained the economy. Yet, Egypt's construction sector has remained resilient. According to Fitch Solutions, it grew by 5.7% in real terms in FY2023/24, down from 7% the previous year but still well above the MENA average of 2.6%, with projected growth of 6.1% annually between 2025 and 2034, reflecting the impact of strategic investments in infrastructure.

One company navigating these challenges is family-run Hassan Allam Holding, led by third-generation Co-CEOs Hassan and Amr Allam, who assumed leadership in 2009 and 2010, respectively. “It’s definitely a challenge—anyone who says otherwise isn’t being realistic,” said Hassan. “But we were agile enough to expand regionally faster than many, which helped diversify our revenue streams. A significant portion of our work in Egypt is dollar-denominated, reducing our exposure to inflation and currency devaluation.”

However, not all revenue is insulated. “For the non-dollarized part of our business, we've had ongoing discussions with clients around compensation and cost escalations due to material price inflation,” he added. Still, their diversified footprint across engineering, construction, and utilities has enabled them to weather these pressures. Amr Amr highlighted the resilience of their investment and development arm amid economic uncertainties: “The impact has been relatively minimal.”

Since assuming leadership, the brothers have transformed the company from an Egypt-focused firm with 3,000 employees into a regional powerhouse with 50,000 people across 10 countries and 18 subsidiaries. “This expansion has allowed us to leverage our capabilities on a much broader scale,” said Hassan.