Egypt to launch real estate export company targeting $3 billion in revenues
The move is part of a government initiative announced in November to sell real estate units in US dollars to foreign investors and expatriates, in collaboration with the private sector.
The company will offer foreigners the opportunity to buy properties in Egypt in US dollars in exchange for obtaining residency in Egypt for five years.
The initiative aims to attract increased remittances from Egyptians working abroad while boosting the country's US dollar reserves.
"Exporting real estate would support Egypt's hard currency reserves and annual remittance inflows," Osama Saad El-Din, a member of the Real Estate Investment Division, told Ahram Online.
The current global circumstances, such as the COVID-19 repercussions, the Russia-Ukraine conflict, and geopolitical tensions, have resulted in a withdrawal of around $20 billion in hot money from the Egyptian market, leading to a severe US dollar liquidity crunch.
Moreover, recent currency exchange market instability has caused concerns among Egyptians working abroad, prompting them to explore unofficial channels for transferring their remittances.
In the first quarter of 2023/2024 (July-September), remittances dropped by 29.22 percent to $4.52 billion, down from $6.39 billion in the same period the previous year, according to the Ministry of Planning.
Success factors
To ensure the success of this initiative, Saad El-Din emphasized the importance of close collaboration between ministries, state authorities, and the private sector.
He suggested that the proposed company should involve the Ministry of Housing in developing a geographic plan, designs, and areas that would attract foreign buyers.
Saad El-Din referred to the crucial role of the Central Bank of Egypt in facilitating fund transfers from foreigners for real estate acquisitions in Egypt.
To promote real estate exports, Saad El-Din stressed the significance of supporting tourism, which entails expanding direct airline routes to Egyptian tourist destinations.
Tourism revenues increased by 9.3 percent to $4.5 billion in the past fiscal year, driven by a 23.2 percent rise in the number of tourists.