China's PBC issues 449.2b yuan off reverse repo    H. Kong exports to Asia surge in June '25    H. Kong's trade volume jumps in June '25    Egypt's anti-drug body launches new awareness phase in Maspero Triangle    Agiba Petroleum starts production from Arcadia-28 at 4,100 BOE/day    Minister El-Shimy pushes for stronger returns, partnerships in real estate, construction sectors    Apparel, textile chambers engage with Chinese delegation to explore investment opportunities in Egypt    Egypt reviews health insurance funding mechanism to ensure long-term sustainability    Obama calls for aid access to Gaza, says 'no justification' for withholding food    Gaza on verge of famine as war escalates, ceasefire talks stall    Gaza crisis, trade on agenda as Trump hosts Starmer in Scotland    Egyptian president follows up on initiatives to counter extremist thought    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    Egypt welcomes 25-nation statement urging end to Gaza war    Sisi sends letter to Nigerian president affirming strategic ties    Egypt, Senegal sign pharma MoU to unify regulatory standards    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    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.



Pound flotation was mandatory, sector faces difficulty in marketing new units: real estate investors
The flotation of the Egyptian pound has increased the cost of construction
Published in Daily News Egypt on 16 - 01 - 2017

Darwish Hassanein, CEO of the Saudi Egyptian Construction Company (SECON), said that the decision to float the Egyptian pound was mandatory despite its delayed release; however, it made challenges faced by real estate investors more difficult.
Hassanein said during his speech at the Al-Ahram "Egyptian Economy on the Road to Development" conference held on Saturday that the government had to provide Egyptian citizens with sufficient information about the decision to float the pound and explain the negative effects and how to avoid and overcome them in a specific timeframe.
He stressed that the decision led to a significant price increase in all components of building and construction.
He explained that real estate investors are facing two major challenges after the pound's flotation. The first is contractual commitment with some clients on the pre-flotation price of units without the ability to adjust prices.
The second challenge is the difficulty of marketing new units as a result of the high cost after the increase in prices of construction materials as a result of the flotation.
He pointed out that banks refused to finance any investment process in the real estate sector if the cost exceeded revenues, which hindered the work of many of the contractors who needed additional funds.
He demanded a fair compensation for the contractors who contracted with the state without delay.
He proposed a balanced contract between the government and any other body, whether contractors or investors, to ensure the rights of all parties.
Arabia Group for Development and Urban Progress chairperson Tarek Shoukry said that the pound's flotation is one of the best decisions made for economic reform; however, it is not accompanied by any protectionist policy aimed at lower-income segments to alleviate its social effects.
Shoukry added that the real estate sector was affected by the liberalisation of the exchange rate, which the government recognises increased contractors' dues by 35%.
Shoukry praised the cabinet's decision in December on the law on compensation for companies operating under contract for the government on construction, supply, and public services. The law applies to all contracts which were carried out from early March 2016 until 31 December 2016.
The Development Chamber of the Federation of Egyptian Industries (FEI) demanded the cabinet grant contracting companies a six-month extension to deliver their projects so as to avoid any fines as a result of delays, according to Shoukry.
He said that the FEI is seeking innovation during the coming period, especially in the implementation of economic spaces and accurate supervision of the construction sites of the projects under implementation.
He added that the chamber launched an initiative to provide foreign exchange by requiring foreign workers to deposit $250,000 with the Central Bank of Egypt (CBE) in exchange for accommodation for three years.
He explained that the chamber is about to sign a protocol of cooperation with the Chamber of Media Industry to develop special requirements for the announcement of real estate products in order to preserve the reputation of the sector from the disreputable practices of some people.


Clic here to read the story from its source.