Arab FinanceMinisters and officials confirmed that there are more promising opportunities for Egypt in… Export of real estate As one of the sources of foreign exchange.
Egyptian officials stressed during activities The twelfth session of the World Urban Forum WUF12held in Cairo, during the period from 4 to 8 November of this year, and was opened by President Abdel Fattah El-Sisi, President of the Republic, stating that the Egyptian state aims to produce real estate that competes outside Egypt.
Opportunities to export real estate abroad
For his part, Engineer Sherif El-Sherbiny, Minister of Housing, Utilities and Urban Communities, said during the session on real estate export opportunities that the Egyptian state aims to produce competitive real estate products outside Egypt.
El-Sherbiny added that the Egyptian state succeeded in the issue of urban development by transferring urbanization to the desert, as Egyptians previously used to live next to the Nile River, and the challenge of transferring urbanization to the desert was one of the great challenges, and the state succeeded in establishing many new smart cities from the fourth generation cities.
The Minister of Housing continued: We have a great diversity of real estate products, as the state has succeeded in the social housing file, the price of which is paid in installments over 20 years at special prices, as the government aims to create 20,000 housing units during the next three years. The state has also established 24 new smart cities and aims to create 14 cities. New ones in the coming period.
El-Sherbiny explained that Egypt has other and diverse models of housing other than social housing, including villas. The state also has a real estate portfolio with more than one alternative in fourth-generation cities in order to attract the eyes of the world. The Egyptian state also grants Egyptian citizenship to anyone who owns a property worth $300,000 or more. It also grants residency. In Egypt, for those who own a property worth $200,000, the state also targeted Egyptians abroad through the Beit Al Watan project in order to increase foreign exchange resources.
The Minister of Housing revealed that the government is in the process of establishing Saudi and Emirati investment funds with the aim of offering lands to investors, and these funds will be maximized during the coming period.
Launching the green urbanization strategy
For her part, Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, confirmed that Egypt’s hosting of the World Urban Forum two years after hosting the Conference of the Parties to Climate Change (COP27) is evidence of the state’s keenness on international cooperation and multilateral cooperation with all international bodies and relevant parties, noting the role of The Ministry aims to integrate international financing into the development areas of the country.
She also stressed the importance of financing for development, pointing to the multiple sources of financing, including investment spending from the plan, which includes in the plan for the fiscal year 2024/2025 allocating investments of about 37% for infrastructure, 42% for human development, and 20% for localities, which is what It confirms the government's interest in supporting urbanization through investment spending in roads, stations, sustainable transportation, and everything that provides the opportunity for rapid communication between cities, which is consistent with achieving the 2030 Sustainable Development Goals.
The Minister of Planning, Economic Development and International Cooperation indicated: To the Ministry's role in achieving integration between local resources and external financing in order to advance development efforts, pointing out that the Ministry is also working to attract external financing and low-cost soft financing, including cooperation with the World Bank in the Upper Egypt Development Program, the Comprehensive Social Housing Program, and the Dry Ports Project. On the 6th of October and the 10th of Ramadan, all of which fall under private sector financing through soft financing, which gives a different dimension to the cities in Egypt to work to attract local and foreign investments to those cities.
Dr. Rania Al-Mashat pointed out the importance of water projects in these cities, noting the financing of the water station in Al-Jabal Al-Asfar with funding from the African Development Bank, and the Bahr Al-Baqar water station, which contributes greatly to agricultural development.
Using financing to fill the gap in investment spending
Al-Mashat stressed that financing from various international institutions is one of the main ways to bridge the gap in investment spending, pointing to blended financing as one of the financing methods, through which the private sector creates a balance between financing from commercial banks and international financing institutions, which is embodied in new and renewable energy projects. Pointing to the Ras Al-Hekma project and debt swaps as one of the innovative financing tools, as these projects depend on diversifying funding sources to pay for the urban part, as these initiatives contribute to alleviating financial pressures on developing countries and emerging economies, and supporting them to implement plans. Development.
Al-Mashat stated that the green urbanization strategy launched today by the Ministry of Housing represents an important part of the comprehensive efforts in the country to enhance the sustainability of cities and the transition towards a green economy, noting that the Ministry of Planning, Economic Development and International Cooperation is working to increase the percentage of green projects in the economic and social development plan, This reflects the government’s commitment to supporting projects that contribute to enhancing sustainability and achieving comprehensive development, as we work with international partners in projects that are characterized by their comprehensive nature, include all segments of society and take into account environmental aspects by focusing on green and renewable projects, and each goal aims These efforts address the complex challenges we face at the national and international levels, and create sustainable solutions that contribute to improving the environment and achieving prosperity for all.
Al-Mashat explained that each of us plays an important role in this journey, whether we are working on national projects or participating in international efforts in cooperation with development partners such as the World Bank and the European Union, explaining that although some of these projects may be in their early stages or However, concerted efforts as partners are vital to enhance economic growth and present a new concept of development that is in line with the requirements of the times. Cooperation with development partners gives us the opportunity to exchange experiences and coordinate efforts to achieve tangible results that benefit everyone.
Al-Mashat revealed that a new planning law is currently being developed that includes among its axes the axis of investment in urbanization.
The Minister of Planning, Economic Development and International Cooperation also confirmed that financing represents an essential element in achieving our goals, as no project can be achieved on the ground without the necessary financing that ensures its sustainability and effective implementation, pointing to the importance of financing in improving the daily lives of citizens by providing The necessary support for cities and organizations. This includes financing projects that contribute to improving living conditions, developing infrastructure, and enhancing services provided to citizens.
Dr. Rania Al-Mashat pointed out the importance of the Fourth International Conference on Financing for Development, scheduled to be held next June in the city of Seville, which will discuss how to use financing to achieve sustainable development, especially in cities that face major challenges, stressing that the state believes that development cannot be achieved without working to make… Our cities are more sustainable and compatible with our new commitments as a country as part of our efforts to combat climate change and preserve the environment, explaining that our nationally determined contributions have been updated, especially in the field of renewable energy, which is an important step towards achieving environmental goals, which are Part of a comprehensive vision aimed at improving the quality of life for current and future generations.
Al-Mashat added: The state is working on a number of projects that include many initiatives that focus on sustainability, such as water treatment and distribution projects in modern ways, and renewable energy projects that include solar and wind energy, as these projects aim to directly improve the lives of citizens, due to their contribution to providing water resources. Clean and affordable energy, which contributes to developing cities and making them more livable.
Supporting green transformation in Egyptian cities
She also referred to the Green Cities Program being implemented with the European Bank for Reconstruction and Development, which aims to support the green transformation in Egyptian cities, and is being implemented in the governorates of Cairo, Alexandria, and 6th of October City, and represents one of the main programs in our partnership with the Bank.
At the conclusion of her speech, Al-Mashat stressed the importance of partnership between national and international bodies to achieve development goals, stressing that the state’s success in achieving its national goals must be accompanied by a commitment to an effective contribution to achieving global progress, and our responsibility as citizens and individuals in society requires us to work together, to make the world more inclusive. , fairness, and sustainability.
For his part, businessman Hisham Talaat Mostafa, Chairman of the Board of Directors of Talaat Mostafa Group, said that the group relied in developing its cities and real estate projects on modern and innovative ideas, noting that all Talaat Mostafa Group’s projects are currently managed with artificial intelligence technology, which ensures significant savings in energy and water consumption. And also the human element. He pointed out that the group was keen to enter into partnerships with major international companies, including contracting with the global Huawei Group, to apply the latest world findings in smart and sustainable city management in the group’s various projects.
Hisham Talaat explained that the cities of the Talaat Mostafa Group currently include 1.2 million citizens and will reach 2 million citizens within 7 years with the completion of the Nour and South Med projects.
He pointed out that the group succeeded in 2024 in reaching 470 billion pounds in sales, which is equivalent to the total sales of the 9 largest real estate companies in the Egyptian market, which places Talaat Mostafa Group in a leading position as the largest real estate entity in Egypt and the Middle East region.
Hisham Talaat pointed out the importance of the private sector’s partnership with the Egyptian state in the field of urban development and real estate development, explaining that the state achieved a good return through the partnership with the group in the Madinaty project, amounting to more than 100 billion pounds.
Exporting real estate to Saudi Arabia and Iraq
He continued: We have another successful experience with the Ministry of Housing in the South Mid project on the North Coast, which succeeded in a short period in selling about 12 thousand housing units as a result of the great local and international demand, 20%. Among them are sales from outside Egypt, which is the largest percentage achieved by a real estate company in Egypt as a result of relying on an electronic system that allows sales, contracting and payment anywhere in the world, thus enhancing the export of Egyptian real estate globally.
He pointed to the success of the Talaat Mustafa Group's experience abroad, starting with Saudi Arabia, where the Banan project was launched in Riyadh. After the success of that experience, the company is heading towards a new market in Iraq, which supports the export of real estate and increases the group's foreign exchange revenues.
Hisham Talaat stressed that the great success of the Madinaty project made it a destination for Arab investors and delegations to learn about the pioneering Egyptian experience in developing smart and sustainable cities, as a delegation from Iraq will visit the city, and the day after tomorrow Madinaty will receive a high-level delegation from the Kingdom of Saudi Arabia.
Transferring the experience of the Administrative Capital to other countries
Khaled Abbas, head of the New Administrative Capital Company for Urban Development, said that the experience of the New Administrative Capital is a unique and new one, and it is one of the five largest companies that pay taxes to the state, pointing out that the population in Egypt is increasing by 2 million people annually, which required the construction of new cities.
Abbas added that the New Administrative Capital currently has 6 international universities and 14 schools, and all of this was achieved in about 7 years, pointing out that there are countries that have requested the transfer of our expertise in the field of urban planning and quality of life in the New Administrative Capital.
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