In Photos: Egyptian archaeological mission at Saqqara Necropolis announces new major discoveries    Rare conviction of South Sudan soldiers for rape raises hope    Bahrain's Bank ABC completes $480m acquisition of Blom Bank Egypt    14.7% increase in health expenditures during H1 of FY 2020/21: Maait    Egypt reports 879 new coronavirus cases, 52 deaths on Friday    Talaat Moustafa Group's subsidiary gets approval to develop 5k feddans in Capital Gardens City    LIVE: Egypt v North Macedonia (2021 World Handball Championship)    Uganda's Museveni holds commanding election lead, rival alleges fraud    Ferguson says management all about results, backs Rooney to succeed at Derby    State revenues expected to drop by EGP 150 bln in FY 2020/21 owing to coronavirus    Tennis: Australian Open arrivals hit by 2 COVID positive tests    Retired doctors and more syringes: Biden lays out plan to get America vaccinated    ‘This is not a game': Global virus death toll hits 2 million    Merkel pushes for centrist as party picks new leader    Egypt's Sisi discusses bilateral ties, regional developments with Sudanese delegation    Egypt's Mostaqbal Watan party dominates the leading posts of parliament's 25 committees    Egypt's budget deficit to GDP ratio receded to 3.6% in first half of FY2020/21, revenues rose by 16%    Mubarak-era politician Safwat El-Sherif dies aged 88    Handball: Egypt ease past Chile 35-29 in World Championship opener    Egypt's president, Siemens CEO discuss final deal on construction of electric train system    Hollywood actor Mena Massoud visits Giza pyramids, says is proud of Egyptian culture    Egypt confirms 970 new coronavirus cases, 55 deaths on Tuesday    EgyptAir to operate daily flight to Doha after lifting airspace ban on Qatar    Pound shielded from Covid-19    Egypt reopens airspace and resumes flights with Qatar    Egypt, Tunisia to establish maritime trade route    TVs were high in demand during 2020 on COVID-19 lock down: Samsung    Egypt eyes gradual return for tourism after revenues fall to $4 bln in 2020    Seasoned Egyptian screenwriter Wahid Hamed dies at 76    Coronavirus strikes Egypt's youth team as 17 players, coach test positive    Nassef Sawiris plans to up his stake in owner of New York Knicks, Rangers    Cairo International Book Fair suspended for five months over coronavirus concerns    Egypt unveils largest archaeological discovery in 2020 with over 100 intact sarcophagi    Trump says won't blame Egypt for being ‘upset' over GERD dispute with Ethiopia    Egypt, Ethiopia, Sudan to resume Nile dam talks today    Global Finance: Egypt's Tarek Amer among the world's top 20 central bank governors    The Facebook Preacher's Search for Fame, and Egypt's Economy    Egypt calls on UNSC to address oil spill risks off Yemen coast    Egypt economically strong in face of COVID-19, reforms ongoing: International Cooperation Minister    Arafa Holding reports $144,000 COVID-19-related losses in April    Egypt's efforts in Libya to activate free will of Libyan people: Al-Sisi    Hyksos campaigns were internal takeover, not foreign invaders: study    COVID-19 affects Egypt sporting clubs    COVID-19 will soon turn to seasonal like swine flu: Presidential Health Advisor    ‘Egypt's Support' coalition convenes to discuss its Senate election list    Robbery attempt leads to discovery of Ptolemaic monuments in Qena    Flouting international guidance, Ethiopia unilaterally starts filling its Nile dam    Zaha speaks out after online racial abuse    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Arab capital movement in Egyptian tourism, real estate still slow: TIA Chairman
Published in Daily News Egypt on 04 - 05 - 2015

Arab investments did not exceed 3.5% of total investments on lands, worth EGP 68bn, owned by the Tourism Development Authority (TDA), according to the TDA's data.
"The movement of migrant Arab capital in Egyptian tourism and real estate sector is still slow and awaits incentives," said Adel Rady, chairman of the Tourism Investors Association (TIA) in Marsa Alam.
Rady added that Egyptian investors demand competitive incentives that guarantee good profit.
He also said that total Arab investments in Marsa Alam are estimated at $2.5bn, a weak rate compared to available investment opportunities in Marsa Alam. Investors, however, are suffering from slow procedures in the public sector.
"Marsa Alam can accommodate investments that exceed $10bn in the sectors of tourism and real estate investments, on condition of providing the right climate, reassuring investors and speeding up procedures," according to Rady.
"Arab capital invested in the Egyptian tourism sector is owned by a group of large Arab families like Al-Sharbatly, El-Shobokshy and Al-Kharafi," said Rady. "We are looking for a variety of Arab capital, not as a sort of political support, but it's rather due to the competitiveness of tourism investment in Egypt."
Land allocation is still the biggest issue for investors, and it has become more complicated now with the delay in the issuance of the executive rule for the new investment law. The law states that land allocation will only be through the committee, which has not been set yet, according to Rady.
"There is a huge plan to market for mega projects, as well as investment opportunities in the tourist investment sector in Egypt for several Arab countries," as per a Ministry of Tourism source. The source also said they are dissatisfied with the volume of Arab investments in the tourism and real estate sectors.
The government official confirmed that the Economic Summit revived activities in all investment sectors. He reassured domestic and international business communities of the government's desire to undertake economic reforms and improve the business practice climate, whether financially,legislatively or administratively.
Emaar Misr is competing with the Saudi businessman Fahad Al-Shabkashy as a representative of Al-Arabia Real Estate Development Company on the Zayed Crystal Spark project. The project covers a total land area of 190 acres, with investments worth EGP 8bn, excluding the land value, and with an investment income between 25% and 30%.
Emaar Misr also made another proposal to develop an urban project on a land area of 410 acres in Shiekh Zayed City. The company is competing with SODIC, Badr El Din Real Estate Projects, Al Offoq, and the Saudi investor Fahad Al-Shabkashy.
The land area, covering 410 acres, on a hill north of the SODIC-owned Westown project, means that the Arab capital investment movement in the tourism and real estate sectors is starting to recover. However, the government source said that they hope for more.
According to Ahmed Balbaa, Chairman of the Tourism Committee in the Egyptian Businessmen's Association (EBA), there is hot competition amongst Arab countries. For example, Dubai competes through its tourism and Saudi Arabia through its industrial sector, while Egypt is working on improving the investment sector.
Balbaa believes the Arab surplus is looking for investment opportunities and countries with competitive advantage and good income on investment. Investment in Egypt's tourism and real estate sectors needs great efforts to compete with the tourism investment in Dubai, for example. "However, we rely on the new legislative and administrative reforms," said Balbaa.
During the Economic Summit, Chairman of the Saudi-Egyptian Business Council Abdullah Bin Mahfouz said that "protecting the investors' rights in Egypt is vital, especially for long-term investments".
He added that Egyptian authorities are flexible when it comes to attracting investments to the country, and new rules are beneficial to investors. However, he pointed out that they are waiting for the final executive rule of the new investment law to increase the competitiveness of their investments in the Egyptian market.

Clic here to read the story from its source.