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Hossam Heiba: Fitch ratings affirms Egyptian real estate's clear strengths

Businessmen Team news 16 September 2025 02:50 PM
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Hossam Heiba: Fitch ratings affirms Egyptian real estate's clear strengths

Egypt's construction and building sector has shown strong performance, with a 20% year-on-year growth and a 30% growth rate, reflecting increasing investor confidence in the Egyptian market, according to Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI).

Heiba made the comments during his speech at the third annual The Investor... Real Estate conference, organized by Black Diamond in cooperation with the Real Estate Development Chamber of the Federation of Egyptian Industries. The conference's theme is "The Future of Real Estate: Challenges, Solutions, and the Alternative Market."

Heiba noted that Egypt successfully concluded one of the largest investment deals in its history with the Ras El Hekma project, which attracted more than $35.7 billion in investments. He said this deal strengthens Egypt's position as a promising and attractive destination for foreign direct investment.

He further explained that government efforts have led to the inclusion of the housing sector under the Investment Law, granting investors several key incentives. These include allowing up to 20% foreign labor, granting foreigners residency for the duration of the project, providing tax incentives and procedural facilities, applying a reduced customs rate of 2% on imported machinery and equipment for real estate projects, and special coordination for integrated housing projects to encourage developers.

The GAFI head pointed out that international institutions are reflecting this positive trend. He cited Fitch Ratings, which classified the Egyptian real estate sector as having "clear strengths and tangible growth," supported by a strong infrastructure and expanded cooperation opportunities amid improving macroeconomic indicators and lower inflation.

Heiba acknowledged that challenges still exist, primarily the delay in issuing a new real estate development law. He emphasized that GAFI is working with relevant authorities to find practical solutions that ensure legislative and regulatory stability, contributing to an attractive and effective investment environment.

He concluded by stressing that the partnership between the state and real estate developers is fundamental to strengthening the sector's role as a driver of development. He added that GAFI is continuing its efforts to provide a more efficient and competitive investment climate, which will solidify Egypt's position as a leading regional market in real estate development and investment.