At the close of the second edition of "The Investor... Real Estate" conference, held under the theme "Real Estate… Challenges, Initiatives, and Financing Solutions," real estate developers outlined a series of critical recommendations aimed at revitalizing the sector and driving sustainable growth. Foremost among these were calls to amend the mortgage financing law, which has remained unchanged for 25 years and no longer reflects current market dynamics, to reduce bank interest rates, and to simplify procedures for real estate companies seeking to obtain credit. Developers also urged the introduction of financial and tax incentive packages to ease operational burdens and boost the market. In addition, they stressed the importance of overcoming obstacles related to the implementation of the national property number system and called for streamlining property registration procedures. To promote real estate exports, developers suggested contracting with international brokers and renowned legal firms, drawing inspiration from the Turkish model. Developers further recommended removing tax obstacles for real estate investment funds, adopting project finance models to mitigate the risks associated with rising costs, and providing special incentives for green and sustainable projects in line with evolving global demand. They also called for establishing clear and comprehensive databases for foreign investors to highlight investment opportunities in the Egyptian real estate market. Moreover, participants emphasized the need to activate the real estate stock exchange and to create specialized judicial circuits for resolving real estate disputes. They advocated for the development of multilingual digital platforms to promote Egypt as both a tourist and real estate investment destination and proposed the establishment of a regulatory authority to oversee market stakeholders, including developers, marketers, and clients. Deputy Minister of Housing for Technical Affairs, Abdel Khalek Ibrahim, affirmed that public-private partnerships have become a fundamental mechanism for addressing the challenges facing global economies. He emphasized that the real estate sector has emerged as one of the main drivers of Egypt's economic growth, highlighting the state's ongoing efforts to support the sector by providing continuous incentives for private-sector participation. Ibrahim indicated that the upcoming period will witness an expansion of state-led projects in cooperation with the private sector and anticipated significant progress on this front in the near future. Islam Azzam, Deputy Head of the Financial Regulatory Authority (FRA), pointed out that the real estate sector accounts for 20% of Egypt's GDP and provides employment for 14% of the workforce. He noted that non-banking financial institutions offer diverse financing mechanisms to support the sector, such as leasing, which has reached a value of EGP 120bn. Azzam added that there are 41 factoring companies providing short-term financing that can assist developers with supplier receivables, as well as 11 securitization companies that offer liquidity solutions. He highlighted that the FRA has introduced regulations allowing mortgage finance companies to partially purchase loan portfolios, thereby enhancing liquidity for developers. The total value of sukuk and securitization issuances in Egypt currently stands at around EGP 55bn. Mohamed El-Etreby, Chairperson of the National Bank of Egypt, remarked that mortgage financing in Egypt represents only 1% of GDP, compared to a global range of between 30% and 60%. He noted that the total value of financing provided by banks and non-banking financial institutions to the real estate sector does not exceed EGP 80bn. El-Etreby emphasized that real estate development employs approximately 16.5% of Egypt's workforce, adding that the National Bank of Egypt has provided EGP 19.1bn in financing under the Low-Income Initiative, including EGP 3.7bn directed to the middle-income segment. Ahmed Issa, Deputy CEO of Banque Misr and former Minister of Tourism and Antiquities, revealed that Banque Misr extended financing worth approximately EGP 70bn to real estate development companies during 2024, including EGP 3bn through CI Capital. He stressed that Egyptian banks are continuing to develop new mechanisms to finance real estate developers, particularly in light of the increasing number of new companies entering the market. Issa underscored the need for developers to demonstrate credibility to banks to secure necessary financing, and reiterated that the real estate sector is one of the most vital economic sectors, requiring robust support to help Egypt capture a share of global real estate export markets. Akef El Maghraby, Chairperson of Suez Canal Bank, reiterated the necessity of amending the mortgage financing law to align with the significant transformations the sector has witnessed in recent years. He pointed to the emergence of new financing models, such as crowdfunding and partnership systems, and praised the Ministry of Housing's role in setting regulations that have helped shield the real estate market from potential crises that could have arisen in the absence of such frameworks. Abdallah Sallam, CEO and Managing Director of Madinet Masr, stated that the involvement of real estate developers in client financing functions poses substantial risks and imposes additional burdens. He called on banks to step up and assume their role in financing, allowing developers to concentrate on project execution and thus contribute to achieving the state's vision of doubling the urbanized area from 7% to 14%. Meanwhile, Ahmed El Adawy, CEO of Inertia Egypt, emphasized that the real estate and banking sectors serve as the twin engines of Egypt's development. He praised the banking sector for its pivotal role in supporting the broader economy and the real estate sector specifically, which he described as a major driver of economic growth and job creation. El Adawy noted that the real estate sector's contribution to GDP has steadily increased, rising from 13.1% in the 2010/2011 fiscal year to 20% at present.
