Amgad Hassanein, Board Member of the Federation of Egyptian Industries (FEI) and Vice Chairperson and Managing Director of Housing and Development Company, affirmed that Egypt's real estate sector acknowledges the state's right to collect fees in return for the large-scale infrastructure projects it is undertaking. However, he stressed that "the real issue lies in the implementation mechanisms and the lack of clarity." In press statements, Hassanein explained that the philosophy behind fees such as the "improvement levy" on lands located along key axes like the North Coast and the Dabaa Corridor goes beyond revenue collection. "It reflects the state's legitimate right to recoup the value of its infrastructure investments, which directly raise the value of nearby land and projects," he said. He added that the state's objective is not to sell land, but to develop it. "As developers, we support imposing fees on land traders who merely resell plots. We had previously called on the government to push such speculators out of the market." Yet, Hassanein acknowledged that the decisions created confusion within the sector. "The biggest problem was their retroactive application. Many projects had already been priced and feasibility studies prepared on the basis of fixed costs. Imposing new fees afterward disrupts those calculations and destabilises the market," he said. Another source of concern, he explained, was the initial uncertainty over whether fees would apply to landowners or developers. "Once clarified that they target landowners, not developers, some of the tension eased. Still, inconsistency in demands among companies raises questions — whether due to lack of coordination among authorities or because the application is still in a trial phase. Either way, it creates a sense of unfairness and heightens investor uncertainty." On whether the fees would affect housing prices, Hassanein downplayed the impact. "EGP 1,000 per sqm of land will only add EGP 100–200 per sqm to the built-up area — a negligible figure. The real issue is not the size of the fee but the way it was introduced and applied," he clarified. He underscored the need for continuous dialogue between the government and developers, noting that real estate contributes more than 20% of Egypt's GDP. "Egypt remains an attractive investment destination, but further facilitation is required to draw in new capital," he added. The debate over fees comes against the backdrop of ongoing tensions between the state and developers in Egypt's North Coast. The New Urban Communities Authority (NUCA) has repeatedly warned that plots may be withdrawn from developers who fail to adhere to construction schedules, delay payments, or misuse allocated land. Several cases of land withdrawal have already been reported, with authorities arguing that such measures ensure serious development and deter speculative hoarding of prime coastal plots. Developers, meanwhile, counter that rising construction costs, economic pressures, and unclear regulations have hampered their ability to meet deadlines, intensifying the standoff.
