Egypt's gold prices fall on July 31st    Egypt signs new exploration deal with Eni, BP    Sterling set for sharpest monthly drop since 2022    Germany says process towards recognition of Palestinian state 'must now begin'    Egypt, Brazil sign deal to boost pharmaceutical cooperation    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Egypt's Electricity Ministry says new power cable for Giza area operational    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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



Real estate investment growth dependent on launch of funds
We expect the launch of more than one real estate investment fund through 2016, says assistant minister of housing
Published in Daily News Egypt on 09 - 02 - 2016

The issue of launching real estate funds dominated the session which addressed the role of real estate funds in investment and financing at the Capital Markets & Financing Growth conference held Tuesday.
Despite the existence of legislative structure allowing this activity, Egypt does not have any real estate investment funds, said Hashem El-Said, deputy chairman and managing director of the Egyptian Company for Housing Development & Reconstruction (EHDR).
El-Said noted, moreover, during the session, that real estate investment funds are an important means to acquire funding.
During the session, Chairman of the Egyptian Exchange (EGX) Mohamed Omran said the real estate sector has major potential, and thus real estate financing funds can contribute to the financing of this sector.
The Egyptian law allows the offering of stocks worth 50 times the value of the fund's capital in the stock exchange, which translates to a huge wealth of funding, El-Said said. For example, if the fund's capital is EGP 100m, it can offer stocks worth EGP 5bn.
El-Said added that the state should encourage investors to establish real estate investment funds, which, if present, could resolve obstacles facing major national real estate projects, such as the new administrative capital and the 1m housing units project for low-income citizens.
Chairman of the Egyptian Financial Supervisory Authority (EFSA) Sherif Samy pointed out that the establishment of real estate funds will allow for cooperation between real estate developers, and will attract Arab investments.
He added that the state should provide these funds with incentives, such as tax breaks, which exist in numerous countries to encourage the real estate investment funds sector.
Samy believes that the presence of such funds will help public sector companies and government agencies better utilise the lands affiliated to them, which have so far remained under-utilised. This would increase the profitability of these companies and boost state revenues.
Assistant Minister of Housing Khaled Abbas moreover highlighted the importance of differentiating between real estate developers' activities, and the activities of real estate financing bodies. He pointed out that a number of real estate developers were forced to provide financing facilitations to sell their projects due to recent economic difficulties; a role which they should not play.
He further pointed to Egypt's leading position worldwide in terms of real estate investments, noting that national projects are currently being implemented on a total area of 300,000 acres. 2016 is expected to witness the launch of one or two real estate investment funds.
The Tax Authority is currently considering the exemption of real estate investment funds from taxation, according to Ragab Mahrous, head of international conventions and agreements at the authority.
Chairman of Rooya Group Hisham Shoukry said real estate funds or investors and real estate developers have complimentary roles. He did however criticise the usurpation of the role of investors by real estate developers over the last 20 years.
"We must work on attracting foreign funds to invest in the Egyptian market through the creation of local real estate funds, especially as we have a lot of competitive advantages, such as the rate of return on the dollar," Shoukry said.
He added that real estate funds provide developers with adequate liquidity to inject investments into other projects, which ensures the sustainability of real estate activity.
Chairman of Arabia Group Tarek Shoukry said providing incentives for real estate funds is essential for stimulating real estate investment funds in the Egyptian market.
Furthermore, CEO of Pinnacle Construction Projects Sherif Salim said economic development in Egypt is majorly dependent on real estate, noting that the establishment of real estate investment funds will help drive economic growth, bring economic mobility and provide job opportunities.


Clic here to read the story from its source.