Invest in Egypt
Last developments in Egypt
Reasons to invest in Egypt
While the tourist infrastructure and economic climate is constantly improving in Egypt, we would urge investors to catch this market at the very beginning, while prices remain incredibly low and there are high returns on investment.
Why invest in Egypt? The main reasons are:
- Acces to one of the largest markets in the region.
- Financial stability and strong banking sector.
- Political stability.
- Diverse economy.
- Available energy with competitive costs.
- One of the largest tourist sector in the world.
- Developed infrastructure: roads, electricity, CIT, ports & airports.
- Availability of qualified labour force, at competitive cost.
- Diversified sources of income: fees from the Suez Canal, tourism, private transfers and remittances, gas and oil exports.
- Foreign-exchange reserves are at a comfortable level and foreign debt remains moderate.
- Large local market, proximity to gulf region (GCC), north African and European markets.
- FDI (Foreign Direct Investments) can be either direct or through joint ventures, in the oil sector, cement industry, pharmaceuticals, automotive engineering but also tourism, real estate and telecommunications.
All indications show that investment property in Egypt is now a highly beneficial market.
The economies of the countries around the Persian Gulf have benefited tremendously from the surge in oil prices of the past few years. Egypt, whose markets are strongly correlated to the Gulf region, occupies a special position. Although only a small net exporter of oil, this most populous country in the Arab world benefits from the accessibility it offers to foreign investors and from the government’s focus on reform.
It is no secret that many equity markets in the Emerging Markets universe have shown impressive returns in recent years. Egypt is without a doubt one of the biggest success stories, with an equity market that added 126% in 2004 and another 162% in 2005.
The country’s main source of foreign income is its tourist industry which is currently growing rapidly. Official figures show that the annual number of British tourists holidaying in Egypt has risen by a third in the last 6 years to 350,000. With extensive coastlines on both the Mediterranean and Red Seas, Egypt is now further developing its coastlines to boost capacity for the international tourist market.
Real estate and property investment in Egypt
With a growing economy and a lot of real estate developments, Egypt satisfies the requirements of many property investors.
Egypt offers a solid economic climate in which to invest. An emerging property market in key tourist locations is already offering excellent returns on investment and investors are eager to get involved, while prices remain stunningly low.
Main reasons to invest in real estate:
- Warm desert climate with year-round sunshine and average temperatures of between 14 and 30°C.
- Great natural beauty with fantastic scenery - stunning white sandy beaches, coral reefs and desert landscapes, giving rise to great recreational activities.
- Rich cultural and historical interest, dating back some five thousand years.
- Friendly nature of the Egyptian people, many of whom speak some English.
- Easy access via direct flights from many international airports. At only 5 hours journey time, Egypt is the number one medium haul tourist destination from Europe.
- Property price returns of up to 30% per annum in some locations.
- Low cost of living and very low property prices.
- Strong economic growth in recent years (GDP 4.5% in 2005).
- Government reforms and incentives for foreign investment, making the property investment process easier than ever before.
- Strong growth in the tourist industry due to increased air services, modernization of amenities and luxury resorts under construction.
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