A Deeper Look into the Emirati Real Estate Investment in Egypt

October, 2023


Despite the instability of the economic situation in Egypt and the floatation of the Egyptian pound, the Egyptian real estate market is still one of the most important and safest investments for the Gulf countries. Emirati real estate investment in Egypt has been witnessing apparent increasing growth in recent years, as Emirati companies are investing in a variety of real estate projects in Egypt, including residential, commercial, and hotel properties.

The Egyptian real estate market began to keep pace with the global movement in real estate and opened up to other markets in the year 2000. Since then, the market has witnessed significant growth, as real estate prices rose significantly, and the demand for real estate increased by local and foreign investors.

The UAE sees in the Egyptian real estate market various attractive factors that make it one of the largest markets that Emirati investment companies are keen to enter and expand. Let us see some of the factors attracting Emirati real estate investment in Egypt:

● Egypt's distinguished geographical location: Egypt is located in a strategic location at the crossroads between East and West, which enhances real estate investment opportunities in Egypt.
● Great purchasing power: The Egyptian economy has great purchasing power, which enhances the demand for real estate in Egypt.
● Political and security stability: Egypt enjoys relative political and security stability, which enhances investors’ confidence in the Egyptian real estate market.
● The large size of the Egyptian real estate market: The Egyptian real estate market is one of the largest real estate markets in the Middle East, which provides great investment opportunities for investors.
● Advanced infrastructure: Egypt has an advanced infrastructure, which facilitates the process of real estate investment in Egypt.

The Egyptian real estate market is expected to continue to grow in the coming years, as the Egyptian government seeks to attract more foreign investments in this sector.

Below are the top UAE companies operating in the real estate market and their most significant projects in Egypt:

Emirati Investments

UAE Diamond Group:

The Emirati Diamond Group announced its intention to pump real estate investments into Egypt worth 3 billion Egyptian pounds during the coming period. Abdul Rahman Ajami, CEO of the Emirati Diamond group and Sky Abu Dhabi Real Estate Development Company, said that the company’s target for its investments in Egypt was 15 billion pounds in 2021, as 12 billion were invested in projects east of Cairo, and now the company is looking for opportunities to invest the remainder of the 15 billion in west Cairo and the northern coast.

Aldar Real Estate Company:

It is a major real estate development Emirati company and owns many real estate projects in Egypt, such as the “Sodic” project on the 6th of October City.

Talal Al-Dhiyebi, CEO of Aldar Real Estate Group and Chairman of the Board of Directors of the 6th of October Development and Investment Company (SODIC), confirmed in a statement that the expansion of SODIC’s portfolio of luxury development projects comes in response to the growing demand for new real estate concepts in key locations in Egypt, and Aldar’s conviction of the growth potential of the Egyptian real estate market in the long term.

Al-Dhiyabi adds that these development projects will consolidate Sodic’s leading position in the market and meet the growing demand for luxury and high-quality real estate in the West Cairo and North Coast markets, which are witnessing continuous growth.

Emaar Properties Company:

It is a major Emirati company working in the field of real estate development. The company owns large projects such as Marassi with an investment value of 22.5 billion Egyptian pounds and an area of 6.5 million square meters. Uptown Cairo with an investment value of 13.5 billion EP on an area of 4.5 million square meters and 200 meters above sea level. Mivida, with an investment value of up to 17.5 billion Egyptian pounds, on an area of 3.8 million square meters, and Cairo Gate is still under planning.

Emirati businessman Mohamed Alabbar, founder of Emaar Properties, confirmed in press statements that Emaar Properties has large investments in Egypt, as it owns many successful real estate projects, including Burj Al Arab Hotel in Alexandria and Sheikh Zayed City.

He added that the company is keen to provide high-quality products and services in Egypt, by adhering to international quality standards and providing the best services to customers. Al-Abbar said that the current economic conditions in Egypt will pass and that we must plan for what comes after these conditions end. He added that Egypt has tremendous investment potential and opportunities, in addition to the facilities provided by the government to encourage investment in Egypt.

Majid Al Futtaim:

Majid Al Futtaim Properties is a subsidiary of Majid Al Futtaim Group, a leading Emirati company in the fields of retail, hospitality, and real estate. Majid Al Futtaim Properties has been operating in Egypt since 1995 and includes residential, commercial, and hotel projects, and integrated residential areas. It is also a pioneering company in investing in administrative and commercial real estate in Egypt.

Mall of Egypt is one of the most important projects of the Majid Al Futtaim Group in Egypt, as it is considered the first shopping destination of its kind in Egypt, and includes a large number of local and international brands. Mall of Egypt is located on the 6th of October City and extends over a total area of 165 thousand square meters. With investments amounting to 12 billion Egyptian pounds.

Majid Al Futtaim Group developed an expansion plan in the Egyptian market worth 23 billion EP, which was announced back in 2016. It signed a cooperation protocol with the Ministry of Investment and International Cooperation to establish 100 Carrefour retail stores in the investment zone system in the governorates.

Egypt’s vision 2030 and real estate development:

Egypt Vision 2030 is a national agenda launched in February 2016, reflecting the state’s long-term strategic plan to achieve the principles and goals of sustainable development in all fields and localize them in the various Egyptian state agencies.

Egypt's Vision 2030 focuses on achieving sustainable economic development, enhancing investment in productive sectors, and providing new job opportunities for Egyptian citizens. The real estate development sector plays an important role in achieving these goals, through:

● Promoting economic growth: The real estate development sector contributes to enhancing economic growth by providing new job opportunities and increasing investments in other sectors related to the real estate sector, such as the construction sector and the services sector.
● Providing new job opportunities: The real estate development sector provides new job opportunities for various specializations, including engineering, construction, marketing, sales, and management.
● Improving the quality of life: The real estate development sector contributes to improving the quality of life by providing high-quality housing units and service facilities.

egypt new capital

Many financial institutions expect Emirati real estate investment in Egypt to continue to grow in the coming years, as Emirati companies seek to expand their investments in the Egyptian real estate market.

Some recommendations that can help promote growth in the Egyptian real estate market are the Egyptian government continuing to launch economic reforms that support real estate investment, the Egyptian government providing more incentives to real estate investors, enhancing cooperation between Egyptian and foreign investors, and developing the infrastructure supporting the real estate sector.

If you want to invest in rent or buy a property in Egypt, we advise you to deal with distinguished real estate consultants to help you. Contact RE/MAX Egypt at +202-22692004 or contact us from here.