Egypt

The rise of economic growth under a liberalized economy that is based on market mechanisms is considered the most distinguished feature of the Egyptian economy in the framework of a developmental strategy whose core is interaction of the power of demand and supply together with paving the way for the private sector to engage strongly in the various economic activities.

Results of the economic and financial performance indicated a great improvement during FY 2006/2007 and first quarter of FY 2007/2008. Egypt's economy achieved a growth rate of 7.1% which is the highest growth rate in ten years where Gross Domestic Product (GDP) with production factors cost increased to reach LE 684.4 billion. Given that the real estate cycle stretches over several years, the Egyptian market has not yet reached its full potential experts agree, despite its massive development during 2006. The funds that left the stock exchange after its strong downward correction in early 2006 Construction & Real Estate tourism developments. Gulf investors were at the forefront of many of the projects. They have come to see the Egyptian real estate sector as a risk-free investment, guaranteeing potentially high returns.

In spite of this demand the actual market for this segment still has room for expansion. Shopping malls also stimulated the commercial real estate market. In Greater Cairo, there are about 26 shopping malls varying in size and profitability. Professional retailing and mall construction came to Egypt just two years ago. CITYSTARS, a $1bn investment, which includes a shopping mall, two hotels, cinemas, as well as residential and commercial real estate, is considered to be the first mall designed according to internationally accepted standards. It is estimated that another couple of years will pass before the Egyptian mortgage system takes off, adding billions of Egyptian pounds in property stock to the economy. The development of property-related and mortgage financing infrastructure has started, but is unlikely to be completed before the end of the decade.