Real estate developers seek low cost funds from EGX

Real estate companies are targeting the development of their activities by at least 20% by the end of this year. This growth in activity is pushing them to find a source of financing cheaper than bank loans, with real estate developers believing that the stock market allows such financing.

Some real estate companies have recently expressed their desire to be listed on the Egyptian Stock Exchange (EGX) to expand their activities to face expansion in their huge projects. The largest of these companies is Emirati company, Emaar, which has completed many of the registration procedures on the EGX. Emaar aims at offering 15% of its shares.

The Head of Vision Holding Group, Hisham Shokry, said: “Real estate companies prefer to be established and achieve revenues for many years first, and then be listed in the EGX.”

Shoukry sees that listing real estate companies helps them expand the funds process at less cost than what they would have gained from the banking sector.