Egypt to establish real estate export company to raise up to $3B

CAIRO - 9 January 2023: The Egyptian government plans to launch an initiative for real estate exports, offering rental and ownership of residential units in foreign currency to both foreign and Egyptian expatriate investors. 

 

This is outlined in a document from the Cabinet regarding the "Key Strategic Directions for the Egyptian Economy during the period 2024-2030," set to be presented for public dialogue before implementation. The document seeks, through its short-term targets, to initiate a real estate export program and promote residential units to foreign and Egyptian expatriate investors.

 

According to the document, the government intends to establish a specialized company to manage real estate export and leasing activities in Egypt, with expected revenues ranging from $2 to 3 billion. Foreign investors benefiting from this real estate export initiative in hard currency in Egypt will be granted a five-year residency (Green card).

 

This company is part of the national program aiming to boost foreign exchange earnings over the next six years to reach $300 billion by 2030, derived from tourism, remittances from Egyptian expatriates, foreign direct investments, exports, and Suez Canal revenues, including outsourcing service exports.

 

Real Estate Export
 

At the end of last November, discussions emerged about the first initiative of its kind focusing on selling real estate units in dollars through a set of incentives in collaboration between the government and real estate developers, as per a statement issued by the Cabinet at that time. 
 

The Real Estate Development Chamber of the Egyptian Industries Federation explained that the initiative is not available to everyone but exclusively for Egyptians abroad and foreigners.
 

The Chamber's President, Tarek Shoukry, stated that the initiative requires the payment of the property value in dollars upfront, not in installments. 
 

Additionally, the buyer will recover the full unit value after 10 years of purchase, serving as a strong incentive for potential customers.
 

Previously, Egyptian businessman Naguib Sawiris called for selling real estate in Egypt in dollars, believing that it would shield developers from exchange rate fluctuations.
 

The government has not yet disclosed the details of the initiative amid discussions about other details, including reselling the unit to others before the end of the ten-year period and whether the client will receive the value of their unit in dollars or the equivalent in Egyptian pounds after 10 years.