Invest in Egypt Real Estate

Invest In Egypt

Real Estate

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Invest in Egypt Real Estate

Contents
Real Estate: Sector Overview

Real Estate Types

Competitive Strengths and Capabilities

Sector Characteristics

Sector Divers

Sector Divisions

Sector Statistics

Leading Opportunities in a Dynamic Market

Strong Policy Support for Real Estate Investment in Egypt

Success Stories

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Invest in Egypt Real Estate

QUICK FACTS

 The country's geographical location is good for trade as Egypt has access to both
the Mediterranean and the Red Sea, not to mention the key Suez Canal route,
which connects Europe and Asia
 Demographic trends represent tremendous potential demand.
 Foreign investment has picked up with the election of former military chief Abdel
Fattah el-Sisi, and recent guarantees that the government will repay foreign oil
companies.
 A growing young, middle class demographic is likely to support demand over the
long-term.
 Egypt has no serious disputes with neighboring states
 With a population of 84 million, Egypt is the largest market in the Arab world

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Invest in Egypt Real Estate

SOCIOECONOMIC
IMPORTANCE
 The industry is dominated by strong local players that have cash flow, brand,
experience, risk tolerance and land banks to weather any downturn in economic
conditions
 Increasing inflation expectations to lead to rising property values.
Demographics mean millions of young adults will be entering the job market
and starting families in the coming years.
 The improvement in the real estate operating environment in Egypt is the
end result of a number of recent developments; the return of foreign
investors to Egypt, government efforts to improve political stability in the
country, and ongoing long-term demographic trends which should make
Egypt one of the best markets in the region for real estate developers

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Invest in Egypt Real Estate

GROWTH DRIVERS AND

COMPETITIVE STRENGTH
Competitive Strengths and Capabilities
Core Areas for Investment: The country's real estate market as a whole has been seeing strong
growth, despite political instability. Residential asking prices in New Cairo rose by 4% and 9%
quarter-on-quarter for apartments and villas respectively.
Large shopping centers, modern grocery distribution, hypermarkets, supermarkets, retail and
Mixed-use real estate development.
Growing Domestic Market: Average annual GDP growth of 4.2% is predicted by BMI until 2015.
With the population increasing to a forecast 88.2 million people by 2015, GDP per capita is
expected to rise by 70.0%, reaching USD 4,957. The construction sector growth reach 6.6% in
FY 2013, Real Estate reached 2.3% from GDP scrotal breakdown in first half of 2013/14, Office
rents will increase in Cairo (5-10%), New Cairo (5-10%), and 6th of October City (2%), while
decreasing in Giza (5-10%).
Retail Greenfield: Still populated by micro enterprises, the Egyptian retail sector is a Greenfield
for investors. 70% of the grocery retail sales were from non-organized and independent
enterprises in 2007; this number is expected to fall by 7% in 2017. The top five retail players
hold only 1.8% of total market share, leaving plenty of space for new market entrants, while
regional centers outside of Cairo and Alexandria are virtually untouched markets with millions of
under-served consumers. Retail rents will increase in New Cairo by 3%.
Growth Potential: The global retail development index ranks Egypt 15th in the world in terms of
growth potential and second in terms of low market saturation. And with the retail market
increasingly saturated in previous key growth countries such as China and Russia, retailers are
turning to the Middle East for new opportunities. Egypt’s location is good for trade as it has
access to the Mediterranean and the Red Sea, not to mention the Suez Canal that connects
Europe with Asia.
Low Cost Base: The Egyptian labor force is internationally recognized for its high-skills and low-
cost. Wages in the wholesale and retail sector average USD 32.20 weekly. Every year, more than
324,000 university graduates enter the workforce, manual labor is in abundant supply, and high
school graduates speak European languages. Businesses in Egypt also enjoy some of the lowest
energy costs in the world, while the domestic building materials industry – including cement and
steel producers - are amongst the world’s cheapest suppliers, making retail space affordable.

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Sector Drivers Egypt’s Value Proposition Investor Benefits

An increase in the number of marriages A large domestic consumer

Population remains the major driver of demand for base is hungry for real
residential units in Cairo. estate property.

 Efforts by the government to

grow the mortgage sector in Improved ease of doing
Egypt could potentially increase business in the real estate
residential demand. sector as well as
Government Support  Government support and subsidies
government facilitated
to the sector via a set of rules and
investment opportunities.
regulations to remove obstacles to
the industry.

 More companies are

decentralizing and employees are The value of investments in
seeking residences closer to their new urban societies is
Urban Expansion workplace. expected to continue
 The Ministry of Housing and increasing.
Urban Communities decided to
relocate the inhabitants of slums.
Residents believe in the stability of
property investments and have a good
grasp of changing business cycles.
Demand for real estate
Demand for residential units in
development is amplified,
Stability downtown Cairo is driven by investors
as it is considered a safe
and a small portion of the population who
and lucrative investment.
are looking to upgrade their area of
residence.

Developers can capitalize

on the shortage, especially
A large gap between supply and demand in family centered projects
Supply Shortage characterizes the sector. given the constantly
increasing population
growth rate.
The rapid expansion of Egypt's banking
sector has helped support current local
Excellent infrastructure to
property sector conditions through
Sound Financial Sector support financing, business
responsible investor-friendly financial
and market research.
decisions.

A vast wealth of heritage and culture,

An increasing demand for
Historically robust enjoyable weather, beautiful
real estate projects for the
Tourism Sector environments, and therapeutic sites
tourism sector.
guarantee a continuous influx of tourists

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Invest in Egypt Real Estate

MARKET STRUCTURE

Sector Divisions
Retail
In the retail real estate sector, consumer demand for retail, and therefore the opportunities for
retailers play a significant role in rental rates .Of the three commercial real estate sub-sectors,
retail still commands the highest rental rate per square meter.
Cairo will always be a desirable location for retailers given its status as a cultural center in the
Middle East, and have a number of projects due to be completed in 2014.
New Cairo and 6th of October City as international retailers are moving locations to newer
properties. New Cairo New Cairo, as nominally implied, is a recent satellite city of the capital and
is the brain child of a Boston firm. It is home to several universities and many residential areas.
on a numerically. experts believes that this is through favorable geographic location: close
enough to Cairo to remain central, yet far enough away so as to be more isolated from the
violence. The city is noted for its numerous gated communities. 6th of October City continues
to be a desirable location, and will be the home of the Mall of Egypt, slated for a 2015
completion.

2013 continued an upward trend for the Egyptian Retail Real Estate market. The minimum rents
increased in Giza, New Cairo, and 6th of October City, while the maximum rents increase in all
four cities surveyed. The only contraction noted was in the minimum rent for Cairo.

Net yield remained stable in Giza, 6th of October City, and New Cairo, while Cairo expanded
from 5-8% to 5-10% due to the increase in rental rates seen on the lower end of the market.

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Invest in Egypt Real Estate

Industrial
Rental rates remained relatively stagnant from 2012 to 2013. BMI shows that minimum and
maximum rents remained nearly the same in Cairo and Giza. 6th of October City registered the
only real increase of the surveyed cities, increasing in both minimum and maximum rents, While
New Cairo had the only true decrease for both minimum and maximum rents, potentially due to
new stock. Net Yields remained the same in Giza, 6th of October City, and New Cairo, while
dropping slightly in Cairo (from 5-13% down to 5-8%.)

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Invest in Egypt Real Estate

2020
OUTLOOK
Leading Opportunities in a Dynamic Market
The concentration of population in Greater Cairo allows many mixed-use developers like Emaar,
Al Futtaim and Kingdom Holding to not only address housing shortages, but also retail, office
space, hotels and the infrastructure whistles and bells that are a part of such developments.
A joint venture between Egypt-based Orascom Construction Industries' subsidiary Orascom
Construction and BESIX has secured a construction contract for a 162,500 m² shopping and
leisure mall in 6th of October City on the western outskirts of Cairo. The mall is being developed
by Dubai-based Al Futtaim Properties, and is meant to mimic the Mall of the Emirates. The
construction work is due to be completed in 2015.
The latest development news to come out of 6th of October City in 2013, was the
commencement of development work in the 'green belt' section of the city in May. Set aside by
the Ministry of Housing and Urban Communities, the 922 acres of land is set to be developed by
the Wadi El Nile Company. The project is set for completion in November 2014 and among the
approved project include commercial and residential developments alongside necessary
community facilities such as water and sewage treatment plants.
Large new developments within central Cairo are almost non-existent with the exception of the
Uptown Cairo project by Emaar Misr leaving the private sector with an unprecedented
opportunity for expansion.
The biggest news of 2013 in this area is the announcement by Saudi Arabian company Emaar
that its Egyptian subsidiary, Emaar Misr, is to construct Emaar Square, a USD 500 million, 2.7
million ft² mixed-use project in Cairo. Blueprints suggest that the development will offer the
largest open mall in Egypt, hotels, offices, apartments and 1,200 family homes. The build will be
located in the Uptown Cairo region, an area which when complete will consist of 11 villages,
costing in excess of USD 2.1 billion. Emaar is also in the process of constructing the EGP 10
billion, Marassi tourism and residential project and the EGP5.75 billion, Mivida residential
project in New Cairo.
Despite delays in some projects, the supply of retail malls is expected to increase further in
2014. The major new addition in 2013 was Cairo Festival City, which added a further 160
thousand m² of high quality retail space into the market in New Cairo.

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Strong Policy Support for Real Estate Investment

Government Support
 The government of Egypt (GOE) has provided incentives for developers to construct new
homes in two areas of Cairo in the East (6th of October), and the West (New Cairo). Each
area, planned to accommodate 4 million people.
 The government plans to increase the number of new cities from 27 to 59 by the end of
2017, which entails a growing market demand and potential for large investments in this
sector.
 The GOE has heavily promoted mortgages since 2005. As for real estate developers, the
Egyptian Ministry of Housing has decided to revalue 110,200 m² of empty land that are
part of the 966,000 m² allocated to Palm Hills Developments for a project in New Cairo.
 As part of the government's strategy to garner revenues of USD25 billion a year from
the tourist industry by 2017, Egyptian authorities have approached Chinese tourism
agencies for support. In addition, the government has simplified visa requirements for
citizens from a number of Central Asian and MENA countries, as well as China and
Russia.
 GOE has planned to build 1million low cost houses over five years for poor communities
to serve 4.5 mn citizens (Class C). Also, there is still a big demand for middle class
housing (Class B) ~approximately 4.5 mn citizens.
 Due to high demand in Class C housing, GOE dedicated 10billion EGP in its budget for
2012-2013 for National Social Housing Project.
 GOE has also allocated 1.5 billion EGP to subsidize the housing projects for low income
citizens and 55 billion EGP for in restructure projects which will significantly increase
demand on construction materials and equipment.
Property tax to be postponed
Egypt's government starts the implementation of the proposed property tax from July 2013.
They have also increased the proposed exemption limit for individual homes from EGP 500,000
to EGP 1 million for single-unit owners and EGP 2 million for owners of more than one
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Invest in Egypt Real Estate

residential unit. The tax was expected to generate some EGP 1.3 billion but alternatives were
being studied that would not cause damage to the investment climate, thus leaving demand
unhindered.
Egyptian Government's Master Plan for the Real Estate Sector 2012/ 2015
National Project for Social Housing objective is to:
 Provide one million housing units for low-income families.
 Provide 250 Thousands pieces of infrastructure land for medical income families
launching by the lottery system.
 Provide 50 Thousands pieces of land for High income families launching by tender
system.
 Growth in marriages has a positive effect on demand for housing units. Marriage group
represents 33-37 % of total population, thus strongly influencing housing demand. The
plan in 2013/2014 is to target the implementation of 175 thousands housing unit in 25
governorates according to the population and the land’s infrastructure in each province.

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Invest in Egypt Real Estate

KEY PERFORMANCE
INDICATORS
 The Real Estate sector accounts for 8.3% of national GDP in 2013(comp. to 8.1% in
2012).
 Real GDP Growth Rate (at Factor Cost) in Real Estate Sector reached 4.2 % July – March
2012/13, compared to 3.2% July – March 2011/12.
 Construction investment is expected to increase to about US $47.7 bn by 2015 according
to BMI’s forecast. There are around 31 public and 36000 private contracting firms.
 Egypt has the largest population in the Arab world (90+million, likely this number will
double by the coming 25 years) and is the fourth-largest economy. Around 33-37% in
the age of marriage.
 The sector absorbed 14.9% of total employment in 2012 (3.2mn) compared to 14.5 in
2011(3.6) according to Booz& co analysis.
 PPP is being encouraged to finance public sector projects. Schools, public hospitals,
water plants, roads and bridges are all current or potential PPP projects.
 The mega project that Dr. Farouk El Baz called “Development Passage ”might be a great
potential to drive the sector to higher rates of growth. This project intends to build new
cities agglomeration in the western dessert, parallel to the NileValley,1000K min length.
 The industry is expected to grow by 70 percent, from $7.2 trillion in 2012 to $12 trillion
by 2020.
 The average price per m² in New Cairo has remained unchanged at around USD 1,780
for villas and USD 1,040 for apartment.
 The average rent for a three bedroom villa in New Cairo is currently USD 3,100 per
month while two bedroom apartment rentals average almost USD 1,000 per month,
 Within 6th of October, the average price for villas is currently USD 1,246 and USD 916
per m² for apartments.
 For 6th of October, the average rental for three bedroom villa is around USD 2,800 per
month while two bedroom apartments rent for around USD 850 per month.
 Average quoting rents for prime line stores in Regional and Super Regional malls in
Greater Cairo have remained unchanged over the past quarter and currently range from
USD 920 to USD 1,410 per m² per year. In certain circumstances, retailers may however
achieve lower rates.
 In January 2014, the construction and real estate sector came in the second place after
the industry sector, concerning the number of new establishments with 81 companies
entering the market and total issued capital of these establishments amounting to EGP
771.26 million, according to CAMPAS.

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 As of Feb. 2014, the construction industry consisted of 10 744 companies operating

inland with total investments of USD 22.62 billon, and 1 company operating in free
zones areas with total investments of USD 0.2 million. (According to GAFI DB from 1970
till Feb 2014)
 The Urban Development & Real Estate took the first place From 2008/2009 till
2011/2012 among the other three commercial real estate sub-sectors (Housing,
Infrastructure, and Contracting), while in 2012/2013 the investment in the Urban
Development & Real Estate decreased due to the reduction of issued capital of 4
companies, as shown on the following figure.

USD million
3000

2500

2000 1517.72
1198.75
1500
1688.36

1000
661.65
877.36 747.83
500
7.87 270.31 270.28 140.74 61.09 148.21 120.95
82.49 33.37
149.42 143.79 38.5 87.19 81.58 1.32
0 3.12 -411.67 16.79
2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 H1 2013/2014
-500

Housing Infrastructure Contracting Urban Development & Real Estate

Source: GAFI DB

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Invest in Egypt Real Estate

SECTOR ASSESSMENT AND

SUCCESS STORIES
Sector Overview

Egypt is home to the largest population and market in the Middle East, this implies a steady – if
not growing – need for residential and commercial property. Real estate is one of the most
important sectors contributing to economic growth and affecting more than 90 industries
related to construction. It is considered a labor-intensive sector as it accommodates at least 8%
of the total labor force.

Real estate market in Egypt as a whole has been seeing strong growth, despite of political
instability, Housing is a basic human need, like food and clothing, and a basic human right that is
guaranteed by all legislations and constitutions. Therefore, is in a dire need for a prudent and
firm housing policy that aims at not only meeting the growing needs of the Egyptian society year
after year, but also at solving the accumulating housing problems and meeting the shortage in
housing units that resulted from the previous policies and legislations.
There is a great demand for residential construction in Egypt where there is a high population
growth rate and a high urbanization rate, such demand is mainly driven by the demand for low
and middle income housing; a gap that is yet to be satisfied. It is important to know that 29% of
the population is under 40 years old and almost half of the Egyptian population is under 19
years old implying a growing demand.
Experts expect that a young and growing population to support a strong construction and
infrastructure growth between 2014 and 2017, the Egyptian construction sector growth rate
reached 6.6% real growth in the first nine months of FY2013, and the sector expecting to reach
14.4% by 2015, of Total capital investment of GDP, leading it to conclude that Egypt is one of the
most sustainable markets for infrastructure investment in the region.
In addition the growth of the building and construction sector is expected to attract investments
of around USD 7.3 billion by 2015, making it one of the country’s biggest revenue sources and
driving the continued expansion of related industries, including metals, cement, and furniture
and power generation, according to International press reports.
Rapid growth and exposure to Egypt's demand for middle-class housing, there is a growing
demand for retail and commercial real estate. The commercial real estate sector in Egypt is
undersupplied. While regarding infrastructure, the government’s PPP projects have stimulated
and are expected to continue stimulating the construction of infrastructure, especially in the
energy and transport sectors.
The construction industry is booming based on massive demand for residential real estate
serving population of over 84 million. Coupled with increasing rates in the Industrial sector.

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Despite the recent global economic turmoil, the underlying fundamentals of the real estate
market in most of Egypt governorates have remained essentially intact. Large-scale
developments are being added to the market to cater for an increasingly sophisticated local
population. This capacity to absorb new supply is largely dependent on the country’s
infrastructure facilities and regulations. The recent structuring of the mortgage market and ease
of access to finance has allowed for a diversification of asset classes. A large number of shopping
centers and office parks are under construction in an effort to meet the demand from a more
structured market driven by the growing middle class .
The value of real estate investments in Egypt has witnessed continuous increases since 2001/02
when it recorded EGP 7.9 billion reaching about EGP 31.8 billion in 2012/2013 with 27.5%
growth rate. The investments of the private sector have always represented the highest share of
the total activities with a percentage amounted to 98% in 2012/2013.
Housing unit needs are estimated to be 8 million units during the period from 2007 – 2022,
especially by adding current housing needs in 2014.
New urban cities in Egypt have reached 27 new cities including 5 under construction, total
investments implemented by the private sector in those cities have reached EGP 400 billion.
The Mortgage Market has grown up and will grow more due to the new amendments in the
mortgage law and CBE new initiative CBE to allocate 10 billion EGP ($1.4 billion) to stimulate the
mortgage sector for 20 years to be lent to people of low-and average-income at 7 and 8 percent
interest, respectively, in order to buy housing units in new urban communities.
Most real estate and urban expansion projects are focused on the capital and the two new cities
New Cairo and 6th of October where international real estate heavy weights such as Coldwell
Banker - Egypt, Edar, ERA Egypt, mostly operate.
Other key areas of the country have become renowned internationally for their tourism
attraction such as Sharm El Sheikh or Hurghada, El Gouna and Marsa Alam.

Cairo

With a population of approximately 18 million, Cairo is the largest city in the region, the 9th
largest urban area in the world, and its historic positioning as an international crossroads for
trade between three adjoining continents are today again driving a renewed economic focus
and significance as a major business centre.
Cairo, historically enjoyed a fairly positive outlook on the commercial real estate sector through
its role as the country's commercial hub. Out of a total of six destination cities, Cairo accounts
for almost two-thirds of projects. The city is a favored spot when growth does return to the
market
The concentration of population in Greater Cairo allows many mixed-use developers like
“Emaar”, “Al Futtaim” and “Kingdom Holding” to not only address housing shortages, but also
retail, office space, hotels and the infrastructure whistles and bells that are a part of such
developments.

New Cairo
New Cairo, as nominally implied, is a recent satellite city of the capital and is the brain child of a
Boston firm. It is home to several universities and many residential areas.

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It would appear that at the higher end of the quality spectrum, prime commercial space in New
Cairo has been flagged as something of a safe haven, with maximum rents in the office and
industrial sectors showing exponential y-o-y growth. Sector experts believes that this is through
favorable geographic location: close enough to Cairo to remain central, yet far enough away so
as to be more isolated from the violence. The city is noted for its numerous gated communities.

New Cairo will see the completion of office developments a bit later than other cities, with
various projects projected to have a 2015 completion.

6th of October City

The 6th of October City posted the strongest y-o-y performance having only suffered a
contraction in the retail segment. As a satellite city for the capital, 6th of October houses Egypt's
'Smart Village' and is seen as the hub of technology and finance businesses in the country, and
for many firms in the region. This well-backed client base for commercial real estate will have
played a crucial role in the relative stability and performance of commercial real estate -
particularly in the office and industrial sub-sectors.
The major development to come out of the 6th of October City in 2013 was the commencement
of development work in the 'green belt' section of the city in May. Set aside by the Ministry of
Housing and Urban Communities, the 922 acres of land is set to be developed by the Wadi El
Nile Company. The project is set for completion in November 2014, and among the approved
projects include commercial and residential developments alongside necessary community
facilities such as water and sewage treatment plants.

Al Obour city
Al Obour lies along Km 9-15 of Cairo-Bilbis road. It occupies a total area 132.3 million m². Upon
completion in 2017, the city’s expected population will be 600 thousand inhabitants. Its total
area 23.4 thousand feddan. The city is divided into districts including all housing categories
(economic – medium – above medium – luxury), the residential area of the city occupies around
22.26 million m². There are over 92 thousand units under construction, 30 thousand of which
are implemented by the New Urban Communities Authority (NUCA) with a total investment of
EGP 1.09 million. Total investments in Obour city are valued at great than EGP 1.4 billion.

Al Shorouk city
Al Shorouk is one of the second generation cities. It lies along Km 37 Cairo – Ismailia road with a
wide extension reaching Cairo–Suez. It occupies a total area is 50.million m². Upon completion,
the expected number of population will be 500 thousand inhabitants. Its total residential area
34.02 million m², divided into districts including all housing categories (economic – medium –
above medium – luxury). 57 thousand housing units have been implemented of which 27
thousand housing units implemented by new NUCA at different levels with a total investment of
EGP 893 million.

Real Estate Types

 Residential real estate investments are properties such as houses, apartment buildings
and townhouses.
 Commercial real estate investments consist mostly of office buildings.
 Industrial real estate investments consist of factories and different industrial units with
various sizes.
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 Retail real estate investments consist of shopping malls and other retail storefronts.
 Compounds refer to a cluster of buildings in an enclosure, having a shared or associated
purpose. The compound can be considered as small communities where different
facilities must be provided.
 Hospitality investments related to the tourism sector contain hotels and resorts.
 Real Estate Investments also include administrative, cultural and educational buildings
in addition to hospitals and other buildings.

Sector Characteristics
Whether you are intending to buy property for vacation or for investment purposes, Egypt
presents numerous reasons why it should be your destination of choice. Below a few ideal
choices for real estate investment:
 Despite the recent increase in property prices in Egypt, they are still extremely
attractive, yielding substantial annual capital appreciation
 High rental returns and good value for money on your property
 Egypt appears to be a safe-haven from the international turmoil in the property market,
thanks to restricted mortgage and lending practices. However, prices started stabilizing
as the price increase curve drops, even though demand continues to exceed supply
 Low cost of living
 Government policies aiming to attract foreign investment by streamlining and easing
property purchase for overseas buyers
 Favorable property taxation schemes
 Huge investments in infrastructure, boosts the property market further

Success Stories
Talaat Moustafa Group (TMG) Holding
TMG Holding is the holding company for the Talaat Moustafa Group, which was founded in the
early 1960s by the eponymous family. It is listed on the Egyptian Exchange. It is by far the largest
listed developer in the country.
The company claims to be the first developer in Egypt to identify the need for integrated
modern communities. It notes that it competes to serve the needs of the upper and middle
classes through a wide range of residential designs; flexible phasing of development; provision
of alternative financing schemes. TMG Holding also claims to be a pioneer in the development
and construction of luxury hotels and associated tourism infrastructure.
Projects
1) TMG's hotel and resort business includes real estate/hotel projects in Cairo (Nile
Plaza, of which construction began in 1995), Sharm el-Sheikh (1996) and San Stefano
in Alexandria (1998). Four Seasons manages the hotels and resorts on behalf of TMG.
It also includes the Four Seasons resorts at Luxor and Masa Alam. TMG's city and
communities business runs developments on the eastern side of greater Cairo (May
Fair, Al-Rehab and Madinaty), on the western side (Al-Rabwa) and on the coast to the

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west of Alexandria (Virgenia Beach and Al-Rawhda al-Khadra). Over the medium term
TMG hopes to generate 40% of its revenue from Saudi Arabia and to expand its
landbank in that country to 15 million m².
2) Madinaty: Madinaty is the largest purpose-built city in Egypt and will ultimately have
600,000 residents and will be more than 16.6 million m². Development began in 2006
and is expected to be completed in 2026. The new city will include 15 schools, a
university, eight hotels and associated commercial developments, office parks and a
hospital. The legal dispute concerning land has slowed sales at the USD 3 billion
Madinaty residential project.
3) Al Rehab II: An extension to TMG's flagship Al Rehab I project, which was opened at
the end of 1996. The BUA to be developed amounts to over 2.5 million n m2. On
completion in 2017, it will be home to 80,000 residents. The project includes four
schools, seven mosques, a church, an office park and two shopping malls. Al Rehab I
has been nearly completely sold.
4) Nassamt Al-Riyadh: In Saudi Arabia's capital. It is 50% owned by TMG. The BUA to be
developed amounts to 1.2 million m². The project includes a medical centre, a
shopping mall, mosques and a sports club.
Financial Data
The latest available financial data is for the third quarter of 2013:
■ Total revenue of EGP24mn
■ Net Profit after tax of EGP17mn.

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Emaar
A Dubai-based Public Joint Stock Company operating in Egypt under its subsidiary Emaar Misr
for Development S.A.E. Emaar is a global property developer and provider of premier lifestyles
and also the largest foreign direct investor in Egypt’s real estate sector with an investment
portfolio of EGP 43.3 billion (AED 29.27 billion, USD7.97 billion). Its most notable projects
include:
1) Marassi: a Mediterranean-styled development close to Alexandria and a few miles away
from the historic city of El Alamein along the magical shores of Sidi Abdul Rahman bay.
It’s a network of lagoons line townhouses and luxury resorts with up to 3,000 guest
rooms, while a bustling community centre fosters a thriving sense of community living.
2) Mivida: an upscale residential community, near the new campus of the American
University in Cairo. Nestled within the fifth district of New Cairo City, this new
development of around 5,000 luxury homes unfolds on nearly 3.8 million m² of gently
rolling landscape.

Sodic
SODIC was incorporated in 1996 as a public joint stock real estate development company and is
emerging as Egypt's fastest growing real estate development company.
SODIC directly employs 1,965 people and indirectly employs another 6,985 on its projects. The
company's total investment budget for 2011 is EGP1.2 billion, to be spent on Egyptian
contractors, raw materials, designers, consultants and advertising agencies.
SODIC’s projects :
1) Beverly Hills: was one of the first ever large scale residential compounds to be
developed in Sheikh Zayed City, off the Cairo-Alexandria Desert Road. With over 1,800
villas and apartments, Beverly Hills has become a sought out address in west Cairo. As a
result, property value in Beverly Hills has more than doubled in the past six to 12
months. Beverly Hills, SODIC’s first venture, is a 1.75 million square meters mixed-use
residential and commercial development that generated over EGP 1 billion in revenue
for the company.
2) Kattameya Plaza: Located in the heart of New Cairo on 126 thousand m² It marks a
new standard in contemporary apartment living. Kattameya Plaza is designed and
master-planned by ArchGroup - the distinguished firm that designed the Grosvenor
House in Dubai, and landscaped by Greenscape. The project is an investment of EGP
334 million.
3) Allegria: Located in Sheikh Zayed City, off the Cairo-Alexandria Desert Road on 24.3
million m². The master-plan for the project was designed by the world renowned New
York-based firm EDAW, which won an award of merit from the American Society of
Landscape Architects (ASLA) for their work on Allegria. The project has also received
two CNBC Arabian Property Awards in 2008, for Best Development and Best Golf
Development in Egypt. The project is an investment of EGP 2.5 Billion .
4) Eastown: To the east of Cairo lies EASTOWN, the bustling town centre of New Cairo
and Kattameya. EASTOWN comprises of 860,000 m² of land and has a built up area of
920,000 m². It will include 1,600 residential units, 1,000 'Class A' offices, 2,000
boutiques and retail outlets and up to five hotels.

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Invest in Egypt Real Estate

In June 2013, the company's main projects included: Allegria, Beverly Hills, The Strip, Forty West,
The Polygon, Westown Residences, Eastown and Kattameya Plaza.

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Invest in Egypt Real Estate

Financial Data:
SODIC reported full year revenues of EGP1.425 billion, if which EGP1.4 billion was derived from
rental income. Net profit for the year of EGP257 million, a massive improvement on the EGP193
million loss of 2011.

Saudi Egyptian Construction Company (SECON)

The Saudi Egyptian Construction Company (SECON) is an Egyptian joint stock company,
established in 1975 according to an international agreement between Egypt and Saudi Arabia.
The company's USD 50 million capital was paid equally by the Saudi Arabian and Egyptian
governments. The company invests in real estate and construction in Egypt.
Projects include residential and commercial buildings, utilities and services in Cairo, Alexandria,
Mansoura and Assyout.
Projects
1) Reliable timely data for SECON is not readily available and the company does not
publish financial information regularly. However, the website lists five current projects,
all described as 'integrated residential districts'; the gated communities it is building on
the outskirts of Cairo. They are El-Amal Housing Project, Zahrat El-Obour Project,
Zahrat Assyout Project, Fifth Compound Zahra Project and Lake Dream.
2) The largest is the Fifth Compound of the Zahra Project. The company says the project is
an important one, reflecting 'the state's efforts to expand the development of new
urban communities'. It consists of 288 villas and is under construction, with the first
phase of 112 villas completed. The project value is reportedly some EGP400 million.

Egyptian Resorts Company (ERC)

Egyptian Resorts Company (ERC) is a specialist developer of international-standard integrated
resort communities. It is listed on the Egyptian Exchange. As of 2013, the company has one main
project, a huge multi-use complex at Sahl Hasheesh. The company's success is derived from
selling off small portions of land from its land bank with pre-determined use. Much of the land is
designated for hospitality purposes. The company is focusing on investment in the infrastructure
of its current venues and is reportedly preparing for a return to more usual levels of occupancy.
This preparation includes opening offices in Moscow, Qatar, Dubai, Bahrain and Saudi Arabia, to
generate foreign interest in the Egyptian projects. Its major project, Sahl Hasheesh, is an
enormous area including office parks, schools, hospitals and all manner of tourism related
properties. The first phase is fully sold already and the second is under way.
Financial Data
The latest financial results refer to Q1. 13, the net revenues EGP5.9 million.
Slums: Egyptians can’t still live in 6.5% of their country's area, noting that the Egyptian Rural
population reached 43.9% of total population, And Urban Population reached 56.1% of total
population by 2013. And rural area still is a drive out center of population who migrates to
urban areas and lives with its poor people in the cities, till if it becomes too narrow, they build
slum areas around cities and live in it.

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