The eighth edition of the Think Commercial roundtable series, organised by Media Avenue, commenced on Tuesday under the title “Real Estate Development in the Era of Mega-Deals.” The event aimed to discuss key developments in the Egyptian real estate market.
During the roundtable, participants explored various aspects, including real estate companies’ strategies to adapt to sector changes and the financial sector’s role in providing financing through different mechanisms. The event also recognized leading companies in the real estate sector.
Government officials, representatives from major real estate development firms, real estate financing companies, asset management specialists, and legal consultants attended the roundtable.
The first session, titled “The Future of the Real Estate Market and Growth Challenges,” was chaired by Fathallah Fawzi, Vice President of the Egyptian Businessmen’s Association and Chairperson of the Construction and Building Committee. Notable participants included Amr Elhamy, CEO of The Sovereign Fund of Egypt’s Tourism, Real Estate & Antiquities Sub-fund; Hisham Shoukry, Founder and Managing Director of Rooya Holding and Chairperson of Real Estate Export Council; and Mohamed Al Bostany, Chairperson of Al Bostany Developments.
Other participants included Tarek Shoukry, Chairperson of Real Estate Development Chamber at the Federation of Egyptian Industries and Deputy Chairperson of the Housing Committee at the House of Representatives; Nader Khozam, Chairperson and CEO of IL Cazar; Ahmed El Attal, Chairperson of El Attal Holding; Hesham Helal, Founder and CEO of Criteria Design Group; Abdallah Sallam, Managing Director of Madinet Masr for Housing and Development; Ahmed Amin Massoud, Chairperson of Al Ashraaf Developments; and Mohamed Abdel Ghany, Chairperson of ECB – Engineering Consulting Bureau.
The session delved into the impact of major real estate deals on the sector’s operational dynamics, their influence on the government’s plans to expand real estate exports, and the growth strategies of Egyptian real estate companies abroad, with anticipated benefits for the local market.
Fathallah Fawzi, Vice President of the Egyptian Businessmen’s Association and Chairperson of the Construction and Building Committee, asserts that the real estate market plays a pivotal role in Egypt’s economic development and is an attractive destination for foreign investments. He specifically highlights the recent significant deal of Ras El Hikma.
Despite challenges such as global economic crises and exchange rate fluctuations, Egypt’s real estate market has experienced substantial growth. Major Arab and foreign companies have entered the Egyptian market, forming partnerships and contributing to this development. The Ras El Hikma deal, covering an impressive 170 million square meters, is expected to further advance the real estate sector.
Amr Elhamy, CEO of The Sovereign Fund of Egypt Tourism, Real Estate & Antiquities Subfund, believes that the real estate market will witness substantial investments, particularly in tourist areas. Notably, the North Coast, previously underinvested, now presents opportunities for collaboration between the private sector and foreign investors, especially in hotel apartments and other properties.
Tarek Shoukry, Chairperson of the Real Estate Development Chamber at the Federation of Egyptian Industries and Deputy Chairperson of the Housing Committee in the House of Representatives, emphasizes that the Ras El Hikma deal has helped stabilize the dollar equation post-currency floatation. This impact extends to real estate developers, distinguishing it from other industries. The deal’s success has also encouraged Arab and foreign investors to explore Egypt’s abundant investment potential.
Abdallah Sallam, Managing Director of Madinet Masr, underscores the political and economic significance of the Ras El Hikma deal. He predicts stability in 2024, partly due to the currency floatation. The Egyptian economy’s maturity and increased activity at Madinet Nasr demonstrate positive trends, positioning Egypt for further growth.
Ahmed El-Attal, Chairperson of El-Attal Group, praises the government’s strategic approach, emphasizing that Egypt’s appeal extends beyond any single deal. The North Coast, previously overlooked, will now see better utilization, leading to real estate market developments and creating thousands of job opportunities.
Nader Khozam, Chairperson and CEO of IL Cazer, highlights how the Ras El Hikma deal has transformed the North Coast. The city’s year-round operational status and investments in essential services like hospitals and schools are promising signs.
Hisham Shoukry, Founder and Managing Director of Rooya Holding and Chairperson of the Real Estate Export Council, hails the Ras El Hikma deal as Egypt’s greatest investment success. Direct foreign investment and land payments benefit Egypt, with the injected investments poised to revitalize the banking sector.
Mohamed Abdel Ghany, founder and head of the ECB, said that the Ras El Hikma deal has significant political and economic implications.
He added that Egypt faces an important challenge regarding the concept of investment, as the country relies more on self-financing. Abdel Ghani added that Egypt is protected from any real estate shocks and that real estate developers must address the crisis of rising prices.
He highlighted the important role of the state in dealing with developers, such as the Abu Dhabi Fund, noting the improved performance of the Egyptian real estate market due to the development role of Egyptian developers. He stressed that these developers face a significant challenge and need state support to achieve further progress.
Mohamed Al Bostany, Chairperson of Al Bostany Developments praised the perfect timing of the Ras El Hikma deal amid the poor state of the Egyptian economy and the significant rise in the dollar’s value at the time. He said the deal revealed Egypt’s natural state over the past ten years of developing infrastructure, establishing and advancing in all fields, and maintaining security, political, and military stability.
He pointed out that the Ras El Hikma deal should be leveraged in the industry. These industries should be prepared now so that those responsible for the Ras El Hikma project do not resort to importing certain materials like “plumbing and electrical tools” from abroad, but instead use Egyptian products.
Ahmed Amin Massoud, Chairperson of Al Ashraaf Developments stated that Egypt was on the brink of very difficult economic conditions, and the real estate sector was the one that resolved this crisis.
He explained that Egypt enjoys a strategic location that places it at the centre of the world, and a large part of the UAE sovereign fund’s investment in Egypt is political. However, the Emiratis invested their money in a prime piece of land, which serves as a message to the new government to pay attention to the real estate market, which represents 25% of Egypt’s GDP, and has helped reduce unemployment.
He added that the Ras El Hikma deal is a golden opportunity for real estate developers, as its area is twice the size of Barcelona, allowing for many projects that Egyptians can benefit from.
Hisham Helal, the founder and CEO of Criteria Design Group, emphasized that everyone felt the rapid impact of the Ras El Hikma deal, notably the decline in the dollar exchange rate. He stated that there is unanimous agreement on the project’s significance.
He added that the Ras El Hikma deal wasn’t just a stroke of luck or assistance from a neighbouring state, but rather, the development of infrastructure such as facilities and roads contributed to attracting foreign investors. Without these efforts, he believes it would have been difficult to finalize the deal.
Helal continued by noting that Egypt still has many attractive investment opportunities, citing the experiences of the New Administrative Capital and El Gouna, both of which have seen substantial investments.
