Egypt is taking significant steps to boost foreign investment in the country’s real estate sector by mandating that foreigners pay for property purchases in foreign currency. The Egyptian Cabinet has recently approved amendments to a 1996 property law that enables foreigners to purchase homes and land in Egypt. This move comes as part of the government’s broader push to attract more foreign investment and create a more favorable business environment for foreign investors.
Previously, foreigners were allowed to pay for real estate purchases using the local currency. By implementing these new measures, the government hopes to boost foreign investment in the real estate market and drive economic growth in the country.
The recent amendments that mandate foreign buyers to pay for their real estate purchases in foreign currency via a fully state-owned bank could potentially drive up real estate prices in the country, according to Medhat Nafea, an economic analyst and deputy to Egypt’s supply minister. The removal of restrictions on the size and number of properties that foreigners can purchase is also expected to result in more homes being owned by foreign nationals. These regulatory changes are expected to benefit GCC citizens most, who are the largest investors in Egypt.
To combat the high inflation which is currently at a six-year high and expected to continue rising, the Egyptian government has implemented several measures in recent months to promote foreign investment in various sectors. These measures include easing restrictions on foreign ownership of real estate, mandating foreign currency payments for property purchases by foreigners, and offering various investment incentives to foreign investors.