BUSINESS

Real Estate market maintaining growth in Egypt: Report

February 11, 2018

Renad Ghanem

Saudi Gazette

CAIRO
— The 7th edition of the biggest real estate show ‘Cityscape Egypt’ is to be held this March in Cairo, Egypt. Cityscape has recently released its February 2018 report with the headline stating the floating of the Egyptian pound and the initial steps to improve the business sector have helped boost growth.

The report said that according to a recent International Monetary Fund (IMF) report, Egypt’s GDP growth is strengthening and inflation is declining. In the last year, the government has trimmed down the deficit, tourism and remittances are on the rise and the country’s foreign exchange reserves are being rebuilt – evidence of an economy back on track.

The launch of Egypt’s reform program received strong support from both international and the local business community, as well as investors.

“This macroeconomic turnaround at home and the supportive global economic environment provide a unique opportunity to carry the reform momentum into areas that have historically been hard to tackle. Deep and lasting structural reforms are needed to create jobs as fast as required for Egypt’s growing population,” said Subir Lall, Head of the IMF team for Egypt, according to the report.

As Egypt continues its economic transformation, the IMF believes that Egypt’s growing population needs about 700,000 new jobs every year, which is possible only if the private sector becomes the main engine of growth. “For that to happen, the state—which has a prominent role in the Egyptian economy—needs to step back from certain sectors and make room for the private sector to invest and grow,” according to the IMF.

Moving forward, priorities include ensuring fair competition for private companies in the markets for their inputs and products, improving the governance and transparency of state-owned enterprises, improving access to financing and land, and integrating more women and youth into the labor market, said the IMF.

Ayman Sami, Head of Egypt Office for JLL, told Cityscape that the sector is quite resilient and is expected to move towards an upward trend in 2018.

The real estate sector will also play a pivotal role in developing a strong economy.

The report concluded with Sami’s quote, “The biggest challenges – one of which was the impact of the devaluation – have been overcome in 2017. Now that costs and input prices are starting to settle with a stable exchange rate, it will start to get easier to operate. Income levels still didn’t catch up with inflation and that will pose a challenge for 2018, however we are expected to move towards an upward trend this year,” said Sami.


February 11, 2018
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