Emirati Stock Exchange Lists Orascom Construction

Orascom Construction Surges 26% in Abu Dhabi Debut as Egyptian Giant Eyes Infrastructure Expansion

Orascom Construction made a commanding entrance on the Abu Dhabi Securities Exchange, with shares jumping over 65% intraday before closing 26.37% higher at AED 38.1. The Egyptian construction heavyweight's listing marks a strategic pivot toward the UAE's infrastructure boom, as the company targets a dramatic increase in investment returns from 15% to as much as 60% over the coming years.

Strong Market Reception Signals Investor Appetite

The stock's debut generated significant trading activity, with 33,890 shares changing hands across 250 transactions worth AED 1.374 million. Orascom's entry boosted Abu Dhabi's total market capitalization by AED 9.27 billion to AED 3.085 trillion, with the construction firm contributing AED 3.3 billion in market value at listing.

The enthusiastic reception reflects growing investor confidence in UAE infrastructure plays, particularly as the country accelerates mega-projects across energy, water treatment, and urban development. Orascom becomes the third company to list on ADX in 2025, bringing the total number of listed entities to 104.

Strategic Repositioning for Gulf Opportunities

CEO Osama Bishai positioned the listing as part of a broader restructuring to capitalize on the UAE's infrastructure investment cycle. The move represents more than just a change of venue—it signals Orascom's recognition that Abu Dhabi offers superior growth prospects compared to its traditional markets.

"Abu Dhabi is the market that will enable us to achieve further success," Bishai stated, highlighting the company's existing operations in the emirate and plans for expanded infrastructure investments.

Ambitious Return Targets

The company's projection of tripling investment returns from 15% to 50-60% appears aggressive but may be achievable given the UAE's current infrastructure spending trajectory. This target suggests Orascom expects to secure higher-margin projects and benefit from the UAE's premium pricing environment compared to other regional markets.

Major Water Treatment Partnership Anchors Growth Strategy

Orascom's commitment to the UAE market extends beyond the listing. The company, in partnership with Italy's Matito and local players ADNOC and Taqa, is developing a $2.4 billion seawater treatment and transportation project set to begin operations in June 2026.

This ADNOC concession represents the type of long-term, capital-intensive infrastructure project that drives sustainable returns in the Gulf market. Water security has become a strategic priority for the UAE, creating opportunities for experienced operators like Orascom to secure lucrative, multi-decade contracts.

Regional Expansion Leverages UAE-Egypt Economic Ties

Bishai emphasized how strengthening UAE-Egypt economic relations create synergies for cross-border operations. The company is already collaborating with UAE developers including Miral Group on the Ras Al Hikma project, as well as partnerships with Emaar Properties and Eagle Hills.

This bilateral approach allows Orascom to leverage UAE capital and expertise for Egyptian projects while using its regional construction experience to support Emirati expansion across the Middle East and Africa.

Market Implications and Outlook

Orascom's successful debut reinforces Abu Dhabi's position as the preferred regional listing destination for established companies seeking growth capital. The emirate's regulatory environment and investor base have proven attractive to firms looking to escape more volatile markets.

For investors, the listing provides exposure to the UAE's infrastructure buildout while gaining access to a company with proven execution capabilities across challenging markets. The stock's strong debut suggests institutional appetite for quality construction and infrastructure plays remains robust despite broader market uncertainties.

The company's ability to deliver on its ambitious return targets will largely depend on securing additional large-scale infrastructure concessions and successfully executing the ADNOC water treatment project. Given the UAE's continued infrastructure investment priorities and Orascom's established regional presence, the fundamentals appear supportive of sustained growth.