Emirati Investment In Real Estate Market In Egypt

Amal Ali 02 Mar 2023

In February 2016, a strategic plan was launched that reflects the vision of Egypt and the government led by President Abdel Fattah El-Sisi. This plan was formulated in Egypt’s Vision 2030. The vision aims to achieve sustainable development in all fields. The pillars of development consist of three basic dimensions: the economic dimension, the social dimension, and the environmental dimension.

On one hand, development in the economic sector comes at the forefront of the goals due to the great role it plays, whether industrial, real estate, or commercial, and accordingly, any development in the economic sector is directly in the interest of the Egyptian citizen and raising his standard of living.

On the other hand, the advancement of the economy is not limited only to the efforts of the state and local investment, but also opening the way for foreign investment and encouraging large companies to pump their money into the Egyptian market.

In today's topic, we will talk about one of the most successful investment stories in the Egyptian market, which is the Emirati investments in Egypt, specifically the Emirati investment in real estate in Egypt. Follow the article to learn more.

Also, do not miss reading topics related to real estate investment, such as:

History of Egyptian-Emirati Relations

Since the first day of the founding of the Federation of the Emirates, it has built strong relations with the Arab Republic of Egypt, which is always aiming for growth and development in many fields.

Starting with the Arab role, the UAE sees Egypt as a pillar of political stability in the Middle East, and the UAE was also the first country to support Egypt in various international forums.

In terms of economics and investment, the UAE sees great attractions in the Egyptian market that make it one of the largest markets in which Emirati investment companies are keen to enter and even expand.

It is noteworthy that the last year 2022 celebrated, Egypt and the UAE celebrated the 50th anniversary of the establishment of the Egyptian-Emirati relationship. And recently, in February 2023, Egypt participated as a guest of honor in the World Government Summit, which is being held in Dubai, United Arab Emirates.

This participation comes within the framework of emphasizing the depth of relations between Egypt and the UAE, and also through this summit, Egypt presented its experience in development, facing challenges and overcoming crises through development programs, especially with crises such as Covid-19, then the Russian-Ukrainian war, as well as the global economic crisis.

We recommend that you read this article, how do you keep your money in the inflation crisis? Steps to overcome the economic crisis

Encouraging factors for Emirati investment in Egypt

At the forefront of the questions that may come to the mind of anyone thinking of investing in Egypt is “what are the most important data or factors that encourage investment in the Egyptian market?”

Certainly, before making any investment decision, everyone searches for the safety and stability factors that the market can offer, through which every investor guarantees that he will obtain profits and not lose his capital. This is what Emirati investments found in the Egyptian market.

The UAE ranks first in the top list of foreign investment in Egypt. According to Egyptian Prime Minister Mostafa Madbouly, the volume of direct investments in Egypt in the fiscal year 2021/2022 amounted to about $4.9 billion, and the percentage of remittances from Egyptians residing in the UAE amounted to about $3.3 billion in the same period.

Given that the UAE is the largest investor in Egypt, the number of Emirati companies in Egypt reaches up to 1,390 company.

In this way, Egypt’s investment environment is qualified to attract more investments in the coming stages. Learn about the most important factors encouraging Emirati investment in Egypt.

The political climate: security and political stability are strong pillars to maintain the economy and attract investments. The general climate in Egypt witnessed remarkable stability compared to other years, which contributed to achieving positive results in the field of investment and company establishment.
Supportive environment: In conjunction with political stability comes the importance of providing a supportive environment for investment through the development of legislation and laws that are easy for any investor.

Since 2016, the Egyptian government has been striving to carry out financial and monetary reforms to achieve rapid growth rates. The legislative side is working on enacting laws that facilitate investment and speed up the procedures for obtaining the necessary licenses and papers.

Economic reform programs: the economy takes a large share of development programs and growth includes all fields, whether urban development through the establishment of new cities, which in turn is in the interest of the real estate market due to the need for these cities for real estate investors. Egypt also encourages industrial investment to achieve high rates of self-sufficiency. Tarboul Industrial City is a successful example of interest in industrial investment.
A large market: There is no doubt that the success of any investment depends on the size of the market in which it is held. The size of the market and the number of individuals benefiting from the services or products offered certainly affect the success of any project.

Therefore, the Egyptian market provides a very high competitive advantage, with the growing population, which includes more than 100 million people. Investors certainly make profits due to the presence of large numbers of investment target groups.

Raw materials and manpower: The Egyptian market provides a huge advantage for any foreign investor, as it provides manpower in large numbers, in addition to its cost being much lower than other markets, which makes work on projects faster and more secure. In addition, Egypt provides a lot of raw materials, which saves the costs of importing them from abroad.
Infrastructure: Without a strong infrastructure and a network of roads and bridges, it will be very difficult to attract any investment. Therefore, the priority of development has always been directed toward modernizing the road and bridge network and facilitating the movement of internal trade to facilitate the transportation of raw materials and supplies to projects. Learn more about Egypt's most important achievements in roads and bridges in recent years.
Proximity to global markets: On the other hand, the goal that any investor seeks is profit and expansion, given Egypt's strategic location in the middle of the Arab region and as an entrance to the African continent in addition to its proximity to Europe. The entry of any investor into Egypt brings him close to a wide range of other global markets.

Emirati investment sectors in Egypt

The fields in which Emirati investments enter Egypt vary, and they include many vital fields. Learn about all areas of Emirati investment in Egypt in the following points.

The communications and information technology sector, as this field is considered one of the most successful investments through which the UAE entered the Egyptian market, in the year 2006 through the inauguration and establishment of Etisalat Misr.

The financing sector, is through Emirati banks in Egypt, including Abu Dhabi Commercial Bank, Emirates NBD Bank, Abu Dhabi Islamic Bank, and Mashreq Bank. Its assets are about 400 billion pounds.

The construction sector. The real estate sector is one of the largest and strongest investments in Egypt. The real estate projects implemented by UAE companies in Egypt vary. Learn more about it in the coming paragraphs.

Investments in the industrial sector, which is the area in which Egypt aims to increase Emirati investments in it, come as a result of Egypt's tendency to establish and own a larger number of specialized industrial cities.

Top Emirati real estate companies investing in Egypt

The Emirati real estate product in Egypt is considered one of the most luxurious and prestigious real estate products that are offered in the Egyptian market, as a result of the fact that Emirati development companies have extensive experience that qualifies them to create and pump high capital to implement a group of unparalleled projects. Emirati investments in real estate in Egypt are not limited to a specific category, but rather they vary to include residential projects, as well as commercial malls and commercial establishments, as well as villages, and tourist resorts.

Get to know the 6 most prominent Emirati companies currently in Egypt and also learn about their most important projects

Emaar Misr: Emaar Misr comes as an extension of the successful and well-known Emirati Emaar Company. The company has a very strong business portfolio in the Egyptian market, led by the Marassi North Coast project.
Majid Al Futtaim
Al-Qamzi
Emkan Misr
Al Dar
Sky Abu Dhabi

Follow all the new real estate projects in Egypt through our website. We recommend that you follow all the weekly articles, and you can also easily find out the latest real estate news.

To communicate with the Inland team and benefit from free real estate advice, call us on this number 01003366453