The real estate sector in Egypt is looking forward to the benefits of the Ras El Hekma development deal, a partnership between Egypt and the UAE that aims to create a world-class project on the North Coast.
Alaa Fekry, the first deputy chairperson of the Real Estate Development Committee at the Egyptian Businessmen’s Association, said that the deal would boost the Egyptian economy by attracting foreign direct investments, increasing property exports, and reducing the dollar gap that has harmed the local currency.
Fekry added that the Emirati partner had a proven track record of marketing real estate projects globally and drawing more buyers from abroad. This would help Egypt reach a new segment of foreign customers and promote its local real estate.
He also said that the deal would inspire Egyptian developers to improve their products and compete in a healthy market. “The project will also create thousands of jobs for workers, contractors, and factories, as well as generate revenues for the state from taxes and other sources,” he said.
Fekry noted that the deal would affect the demand for real estate in the short term, as buyers would wait to see the impact of the deal on real estate prices, which have reached record highs recently. He said that developers were also waiting for more clarity on construction costs. He expected that resale transactions would increase as a result of the deal.
Fekry stressed the need to establish regulations for the real estate sector after the deal, as foreign capital would seek clear laws and transparent mechanisms. He concluded that the success of real estate export depended on five factors: legal protection for investors and buyers, a regulatory body for the market, availability of information, quick response from government agencies to solve problems, and accessibility of airports to attract tourists.
Yasser Zidan, the chairperson of AlQamzi Developments, said that the deal would have many economic benefits, such as employing thousands of direct and indirect workers and stimulating the building materials and raw materials industries. He said that the project aimed to attract at least 8 million tourists annually, ensuring the growth and sustainability of Egypt’s hard currency income.
Zidan said that the deal showed the confidence of foreign capital in the Egyptian market and its potential, which would encourage more local and foreign companies to expand. He said that the deal would also add value to the North Coast as a whole.
