SOURCE: Orascom Construction Inds, S.A.E.

July 16, 2008 03:12 ET

OCI Establishes New Construction JV in Abu Dhabi

Cairo--(Marketwire - July 16, 2008) -


Cairo, Egypt / July 16, 2008, 10:00 AM






OCI / Sorouh / Hydra / Capital Investment Establish New Construction
Joint Venture in Abu Dhabi, UAE


Orascom Construction Industries (OCI) announced today the establishment
of a new construction joint venture, "Emirates Foundation" in Abu
Dhabi, UAE. This new partnership will see OCI join together with Hydra
Commercial Investments, Sorouh Real Estate (SOROUH.ADSM) and Capital
Investment, an Abu Dhabi-based firm.


Sorouh Real Estate is a leading Abu Dhabi-based real estate company
with residential projects which exhibit innovative designs and
state-of-the-art technology. The company is listed on the Abu Dhabi
Securities Exchange (ADX) in the UAE. (www.sorouh.com)


Royal Group is one of the leading conglomerates in the UAE and is
comprised of 60 medium to large enterprises specializing in various
industries such as property development and construction, real estate,
infrastructure and utilities, manufacturing, technology and media.
Royal Group's real estate developments include the USUSD 35 billion Reem
Island Project in Abu Dhabi. (For additional information on Royal
Group, please visit www.royalgroupuae.com)


Emirates Foundation will specialize in geotechnical engineering and
foundation works including piling, grouting and D-walls. The company
will also perform substructure works up to ground level. Emirates
Foundation is projected to have a capital expenditure of USUSD 80 million
to be financed by a combination of debt and equity. The Company will be
registered in Abu Dhabi as a "Class A" specialized contractor. OCI will
own a 50% stake


Sorouh Real Estate, Hydra Commercial Investments and Capital Investment
are expected to support the newly established company through various
foundation works on several of their large projects in the region. This
will be done based on prevailing market pricing for similar work.


OCI Chief Executive Officer, Nassef Sawiris commented, "we are pleased
to partner with Hydra Commercial Investments, Capital Investment
and Sorouh Real Estate, all of whom are world class real estate
developers with a strong pipeline of projects. We believe this
partnership will be a platform for further collaboration in the future
on a number of new initiatives."


Mr. Sawiris added, "there is a noticeable shortage in construction
services for piling and foundation work in the region which is
hindering the progress of many large-scale projects. The establishment
of Emirates Foundation in Abu Dhabi will provide a new turnkey approach
in this construction niche. It will also enable the OCI Construction
Group to achieve further vertical integration for its construction
services in the region."


Sorouh Chief Executive Officer, Mounir D. Haidar added, "through world
class partnership with OCI, Hydra and Capital Investment; Sorouh and
our partners are putting our resources together to deliver our projects
on time and to take the opportunity of this much needed construction
specialty service to diversify revenue stream for our shareholders."


For additional information
contact:

OCI Investor Relations Department:  For additional information on OCI:

                                    Orascom Construction Industries
                                    (OCI)
Omar Darwazah                       Nile City Towers - South Tower
Email: omar.darwazah@orascomci.com  2005A Corniche El Nil
                                    Cairo, Egypt

Ahmed Sultan
Email: ahmed.sultan@orascomci.com   www.orascomci.com
Tel: +202 2461 1039/1036/0727/0914
Fax: +202 2461 9409
                                    OCI stock symbols: OCIC.CA / ORCI
                                    EY / OCICqL / ORSD




                    This information is provided by RNS
          The company news service from the London Stock Exchange

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