CAIRO: Minister of Housing Moustafa Madbouly confirmed Thursday his participation in the City Scape Real Estate Summit held in Cairo on April 7-9.
Madbouly will share his vision on Egypt as an investment hub, according to a statement of the event’s organizer Informa Egypt.
More than 250 leading officials of businesses in the real estate sector and 40 speakers, including the head of Egyptian Financial Supervisory Authority (EFSA) Sherif Sami, are taking part in the summit, added Informa Egypt.
The Real Estate Summit will address Egypt’s economic situation in light of global and regional developments along with the impact of local political developments on the economic outlook, according to the statement.
The real estate sector is one of Egypt’s main contributors to economic growth, affecting more than 90 industries .The sector represented 4.6 percent, 80 billion EGP (U.S. $11.5 billion,) of the GDP during the fiscal year 2012/2013, and recorded a 5.9 percent growth rate.
Approximately 35 billion EGP was invested in the real estate sector last year, which accounts for at least 8 percent of the country’s labor force, according to data from the Ministry of Housing.
“We plan to launch Egypt’s first index fund in April to increase liquidity in the market and draw more investors, especially Arabs,” Sami said in the statement.
During the summit, Sami will highlight Egypt’s progress in providing alternative forms of funding – namely mortgage and securitization, the statement detailed.
In February, the Central Bank of Egypt (CBE) launched a new initiative worth 10 billion EGP ($1.4 billion) to stimulate the mortgage sector.
Through the new initiative, CBE would lend banks 10 billion EGP over 20 years to be lent to people of low-income and average-income at 7 and 8 percent interest respectively, in order to buy housing units in new urban communities, according to a CBE report.