(AFP File Photo)
The Ministry of Housing will sign Memorandums of Understanding with Saudi businessmen during the Economic Summit in Sharm El-Sheikh this month with a capital of over EGP 1bn.
This will allow for Saudi participation in implementing several real estate projects in new cities, according to Housing Minister Mostafa Madbouly.
In a press statement to Okaz newspaper, Madbouly said the real estate sector plays a leading role in economic and social development, contributing to 70 feeder industries and providing thousands of jobs.
“The real estate sector in Egypt is strong and great candidate to acquire a large amount of investments between Saudi Arabia and Egypt during the summit,” Madbouly added. “The projects will be debuted in the Summit, and will have an increasing interest from investors, especially Saudi and GCC investors who tend to invest in the Egyptian real estate market.”
Madbouly confirmed that Egypt’s real estate prices remain lower than the rest of the Arab world. The good real estate sector value provides a margin of significant profit to the investors, especially in light of the growing need for housing market in Egypt.
The number of real estate units being built annually are estimated at 250,000 units, while the demand is estimated at 600,000 units, the minister added.
Regarding complaints by Saudi investors, Madbouly said the cabinet is working towards a resolution of the problems investors face. The minister’s comments come after Saudi investor complaints were received showing the severe suffering from some challenges and problems in April 2013.
The real estate sector affects approximately 100 industries, and contains 8% of the workforce in Egypt .The pumped investments in the real estate sector during the last FY totalled EGP 35bn.
