Egyptian Prime Minister Mostafa Madbouly reviewed a proposed draft law to regulate the real estate market with industry developers, aiming to establish a professional developers’ federation and introduce unified classification criteria to protect buyers and resolve stalled projects.
The legislative push follows a directive from President Abdel Fattah Al-Sisi to formulate a legal framework that balances investment incentives with the protection of the state, developers, and beneficiaries. Madbouly stated that the government is coordinating with regulatory bodies to inventory faltering projects nationwide and develop mechanisms to reach definitive solutions for non-delivery cases.
The government intends to hold dialogue sessions on the draft before presenting it to the Cabinet and subsequently to Parliament, Madbouly added.
Minister of Housing, Utilities and Urban Communities Randa El-Minshawy said the ministry is actively identifying cases of developers failing to deliver housing units. She noted that such cases remain minimal compared to the sector’s overall achievements, and that the government is resolving these issues sequentially to serve the interests of both serious developers and buyers.
Al-Minshawi outlined that the proposed law aims to boost investment confidence by creating an organised professional federation to assist in dispute resolution and support market transparency. The legislation will mandate a unified classification of developers based on executed work volume, financial solvency, and operational capacity, alongside enforcing stricter rules to protect contractors.
The draft’s philosophy is designed to balance the protection of buyers and market stability with empowering qualified developers, Al-Minshawi explained. It also imposes strict monitoring on developers who do not meet efficiency conditions until they satisfy the necessary requirements to join the federation as core members.
The meeting, which included Deputy Minister of Housing for Urban Communities Walid Abbas and other ministry officials, reviewed transitional provisions and the objectives of the Egyptian Federation of Real Estate Developers. These include establishing a code of ethics, proposing rules for developer classification, setting quotas for board representation, defining registration conditions, and stipulating customer protection measures when real estate projects falter.
Real estate developers provided preliminary feedback, highlighting the sector’s economic impact through ongoing projects valued at trillions of EGP that create millions of jobs. They stressed the importance of differentiating between the majority of serious developers and a small percentage of non-serious operators, affirming the need for clear financial and technical criteria for classification.
