Chairperson of Al Ahly Sabbour Developments, Ahmed Sabbour, emphasized that investors have become a central focus of global attention. They are the driving force that elevates the economy to higher efficiency, significantly contributing to international production through investments that ultimately benefit the state. This impact is evident in economic growth, an increased supply of goods and services, tax revenues, job creation, and the social contributions investors make in the communities where they operate.
Speaking during the opening session of The Investor… Real Estate conference on Monday, Sabbour highlighted that the language of numbers clearly demonstrates no economy can thrive without investors.
“According to World Bank data, private sector investments in infrastructure projects in low- and middle-income countries reached $86bn in 2023. The Ministry of Investment has outlined an ambitious plan to attract approximately $240bn in private sector investments over the next six years,” Sabbour noted. “These figures align with Egypt’s potential, as the country offers numerous opportunities that enhance its competitiveness, positioning it as a regional hub for competitive industries, especially following significant infrastructure investments over the past decade. In the 2023/2024 fiscal year, Egypt successfully attracted $46.1bn in foreign direct investments, maintaining its position as the leading African destination for investment in both 2022 and 2023. This trend is expected to continue, particularly after foreign investments reached historic highs with deals such as the recent Ras El-Hekma agreement.”
Sabbour pointed out that real estate investment is one of the primary drivers of the local economy, contributing 20% to the GDP, creating over 7 million direct and indirect job opportunities, and stimulating more than 100 industries. However, the sector faces significant challenges, particularly with financing, a concern that has grown more pressing recently.
“This calls for the development of innovative, non-bank financing mechanisms,” Sabbour stated. He acknowledged the valuable collaboration with the Financial Regulatory Authority, expressing gratitude for its leadership and supportive ideas aimed at bolstering the real estate sector and Egypt’s broader economic development.
Sabbour also revealed plans for his company to offer between 20% and 25% of its shares on the Egyptian Exchange (EGX). The company intends to appoint an IPO advisor before the first quarter of 2025, who will determine the timing of the offering, expected to occur within 8 to 12 months. “We are committed to this IPO,” he said, “particularly as we have projects in 2024 with sales values exceeding EGP 600bn, making us an attractive option for shareholders.”
Ahmed Abdallah, Vice Chairperson of Redcon Properties, predicted that interest rates would start to decline in 2024, expressing hope they would stabilize at 15%. He explained that mortgage financing could help expand the market, though high interest rates currently limit these opportunities to low-income housing.
Abdallah noted that mortgage finance companies face challenges related to high interest rates and inflation. Leasing companies, while offering quicker financing, operate at higher rates than banks. He also pointed out the lack of risk databases for developers and the absence of a comprehensive market map for projects.
Abdallah emphasized the importance of leveraging green financing, which provides substantial funding in foreign currency. However, he cautioned that repayment remains a challenge, as it also requires foreign currency.
