The Egyptian government is working diligently on providing an attractive investment environment for both local and foreign investors to expand the private sector’s participation in economic activities, contributing to the growth of the real estate sector. In this regard, we explore the latest government initiatives to boost foreign investment in the real estate market.
Egypt’s Strategic Investment Plan
The Ministry of Investment and Foreign Trade is finalizing the country’s strategic investment plan aimed at attracting foreign direct investment (FDI) while focusing on improving the business environment and streamlining procedures.
During a speech at the Senate’s general session, Eng. Hassan El-Khatib, Minister of Investment and Foreign Trade, stated that the plan enhances Egypt’s competitiveness as a key investment and trade hub in the region. It also reflects the ministry’s commitment to providing sustainable investment opportunities that support economic growth.
El-Khatib highlighted the ministry’s ongoing efforts to facilitate investor operations, streamline Egypt’s foreign trade, and enhance exports to global markets. He emphasized that the current phase focuses on creating a resilient and stable economic environment characterized by transparency and competitiveness, aligning with the government’s drive to empower the private sector as the main driver of economic development.
Competitive Edge and Strategic Location
El-Khatib noted Egypt’s advanced infrastructure, new urban developments, skilled workforce, and status as a large consumer market. The country’s strategic location at the crossroads of continents allows for easy access to the Middle East, Europe, Africa, and Asia. These factors, combined with unique investment opportunities and growth potential, continue to attract both local and foreign businesses.
The minister also highlighted the country’s appeal to new companies entering the Egyptian market, drawn by its diverse investment opportunities and robust growth capabilities.
Egypt and Saudi Arabia Explore Joint Real Estate Initiatives to Boost Urban Development
Eng. Sherif El Sherbini, Egypt’s Minister of Housing, Utilities, and Urban Communities, met with Dr. Majid Al-Hogail, Saudi Arabia’s Minister of Municipal, Rural Affairs, and Housing, to discuss ways to strengthen bilateral cooperation in urban development. The meeting took place on the sidelines of the Cityscape Expo in Riyadh.
The two ministers discussed activating the role of the Egyptian-Saudi Real Estate Council, aiming to organize an annual forum that showcases investment opportunities for investors from both countries. This initiative would create a platform for potential collaboration and investment growth in real estate.
They also explored the concept of establishing a joint real estate investment fund. To advance this idea, both ministers recommended forming a joint working group to examine the feasibility and outline the best approaches for fostering partnership opportunities between the two countries in the real estate sector.
El Sherbini emphasized Egypt’s commitment to creating an investor-friendly environment by addressing challenges and removing obstacles faced by Saudi investors in the Egyptian market. He highlighted that the Egyptian government and the Ministry of Housing are making substantial efforts to facilitate investments, offering support to overcome any challenges that may arise.
Investors Commend the Fund Launch
Economists and real estate developers have highlighted the positive effects of establishing a real estate fund between Egypt and Saudi Arabia. They noted that this initiative enhances the investment partnership between the two countries and elevates sustainable development efforts in Egypt. They explained that it represents a significant step toward achieving the strategic goals of both sides and expanding the scope of real estate investment in Egypt, especially in light of the economic challenges facing the world.
Eng. Tarek Shoukry, Chairman of the Real Estate Development Chamber of the Federation of Egyptian Industries (FEI), stated that the agreement between the Saudi Public Investment Fund and the Egyptian Sovereign Fund aims to establish a joint real estate fund with an initial capital of $1.5 bn, in addition to plans for future expansion and attracting more investments.
He added that the fund will focus on investing in major real estate projects in Egypt, including urban development, infrastructure, luxury housing, as well as tourism and commercial projects.
Additionally, Shoukry emphasized that this initiative is part of a series of investment agreements that unite the two countries across various economic sectors, but this time the focus on the real estate sector represents a qualitative shift, especially given the increasing demand for real estate in the Egyptian market. The real estate sector is one of the most important drivers of the Egyptian economy.
Moreover, he explained that the Egyptian-Saudi Real Estate Fund seeks to achieve several key goals that serve the interests of both countries. It aims to enhance foreign investment in the Egyptian market by attracting more capital and investors from around the world, which will contribute to supporting the local economy.
Furthermore, Shoukry stressed that the fund will provide substantial funding for major real estate projects, helping to develop modern infrastructure and housing projects that meet the needs of the growing population. He pointed out that it is expected to create thousands of job opportunities in various fields, including construction, management, and marketing, which will benefit the Egyptian economy and help reduce the unemployment rate.
In conclusion, the Egyptian government’s proactive initiatives to enhance foreign investment in the real estate sector signal a promising shift towards economic revitalization. By finalizing a strategic investment plan that prioritizes transparency and competitiveness, Egypt is positioning itself as a key player in the regional investment landscape. The collaboration with Saudi Arabia to establish a joint real estate fund further underscores this commitment, aiming to attract substantial capital and foster sustainable development. As these initiatives take shape, they not only aim to address immediate economic challenges but also seek to create a robust framework for future growth, ultimately benefiting both local and foreign investors while contributing to job creation and infrastructural advancement in Egypt.