The Egyptian government is currently reviewing partnership offers worth EGP 8 billion ($258 million) from investors in the real estate sector, Mahmoud Esmat, Minister of Public Business Sector, said on Sunday.
These partnership offers, which include proposals from Saudi investors, are expected to be finalized in the first quarter of 2024, Esmat revealed during an interview with Asharq Business.
Under the proposed partnerships, companies affiliated with the public business ministry will provide land for the projects, while investors will be responsible for carrying out the development work, he added.
“Egypt intends to enhance the returns from its unused lands and real estate assets,” the minister emphasized.
One of the major partnerships in the pipeline involves the Heliopolis Company for Housing and Development, a prominent government housing company.
However, Esmat clarified that there are no plans to sell any shares in the company and that their focus is “solely on evaluating partnership offers.”
Currently, the Holding Company for Construction and Development owns approximately 72.25 percent of the shares of the Heliopolis Company, which has a capital of around EGP 334 million and a market value of about EGP 15 billion.
In the fiscal year 2022/2023, the real estate sector was the third-highest recipient of foreign direct investment (FDI) in Egypt, with a total of $552.3 million recorded.
Notably, the Egyptian Exchange (EGX) is finalizing the system for a real estate exchange to be launched within four months, the bourse's Chairman Ahmed El-Sheikh said in October.
Egypt's real estate sector is one of the largest in the region. The number of residential and mixed-use real estate projects in Egypt currently stands at 534, with a combined value of $329.57 billion, according to Property Finder.
Egypt is seeking to sell real estate units in US dollars to foreigners and expatriates in collaboration with the private sector, as a means of bolstering its dwindling US dollar reserves.
Egypt has seen a surge in commitments from Saudi, Emirati, and Qatari businessmen, who have pledged to inject more investments into the country's economy.