LOCATION: Egypt

POPULATION: 81,713,517

INFLATION: 11%

GDP: 7%

GOVERNMENT TYPE: Republic

COUNTRY AREA: 995,450 sq km

COUNTRY BORDERS: Gaza Strip, Israel, Libya, Sudan

NATURAL RESOURCES: Petroleum, natural gas, iron ore, phosphates, manganese, limestone, gypsum, talc, asbestos, lead, zinc

COAST LINE: 2,450 km

MAJOR INDUSTRIES: Crude oil and petroleum products, cotton, textiles, metal products, chemicals phosphates, food processing, tourism, chemicals, pharmaceuticals, hydrocarbons, construction, cement

MAJOR TRADING PARTNERS: Italy, US, Spain, UK, France, Syria, Saudi Arabia, Germany



Despite its ancient significance, Egypt is enthusiastically embracing the twenty first Century and with over 80 million people it is the Arab world?s most populous nation. Unlike many of its neighbours, Egypt is currently undergoing major modernisation. Egypt?s moderate government is committed to economic growth through reform and inward investment, including property investment around Egypt. Reductions in corporate and personal taxes, fewer Customs tariffs, a raft of privatisations, and modernisation of the banking sector are the main drivers to this growth.

Its history spans over 7,000 years and is probably one of the oldest vacation spots in the world. Early Greeks, Romans and others went there for fun and to see the wonders of mankind?s earliest triumphs, such as the pyramids, temples and monuments, but it is also has year round sunshine. With Red Sea Scuba diving, relaxation, hot night spots, romantic Nile cruising, upscale accommodation and the wide variety of tasty food, Egypt is the destination to be.

By 2011, the government aims to attract over 11.1 million visitors. There are currently an estimated 175,000 apartments for tourists (the Government is targeting some 250,000 by 2011 - requiring 15,000 new apartments per year), so demand is likely to keep rental prices firm.


ECONOMY:
Egypt has had a very strong economic growth in recent years, a situation that continues, with a growth in GDP of 7% divided on a population growth of 1.8%. In recent years, Egyptian bureaucracy has been slimmed to facilitate national activities and foreign investments. While exporters earlier had to deal with several state authorities, they now only need to face one.


EGYPT PROPERTY
In the early 1990s the government allowed private housing projects to be built after years of only state-built housing. Large amounts of inexperienced companies jumped in which created a massive oversupply of property. Egypt was suddenly full of empty low quality housing blocks. Developers went bankrupt, and from 1997 on there was a massive housing oversupply crisis. Now the situation has turned around and Egypt?s property market is booming again, for a number of reasons:

? Egypt offers excellent rental income returns at around 8%.

? The Gulf is now exploding with new oil money, and sees Egypt as politically less risky than Lebanon or Jordan and is also more westernised in its attitude.

? Egypt has a rapidly-growing economy with a fast-growing outsourcing sector.

? Europeans have an enormous appetite for property in the Red Sea.

? Has attracted large scale developers from Dubai, who are due to invest huge sums of money to develop the Red sea coastline and increase Hughada property investment.



The government floated the Egyptian Pound in January 2003, which led to a sharp drop in its value, which has now mostly recovered. The lower currency has encouraged expat Egyptians to buy, boosting the market.

The passing of the Real Estate Finance Law (148/2001) in May 2001 created a mortgage market, and for the first time since the 1948 civil code, banks can now repossess properties and evict owners who default on loan repayments. Total mortgage lending is expected to grow rapidly.

Property registration fee was reduced to a maximum of LE 2,000 (US$350).

Red Sea destinations are beneficiaries of low air travel costs and short flight times, which place Egypt within a few hours of Paris, London, and Berlin. The magnificent beaches on the Red Sea are swiftly being covered with tourist and housing developments, in a repetition of the holiday boom of the European Mediterranean from Portugal to Sicily, but with the added benefit of all year round sunshine.