"Egypt Real Estate Report Q1 2015" Published

Egypt is only just beginning to recover from the political instability seen in the country over the previous three years. On top of this, regional violence and strife have added a further deterrent to would be investors. Instability is also keeping away tourists, negating one of the most powerful drivers of the Egyptian economy. Nevertheless, holding an important position within regional culture and with demographic trends on its side, the country's economy continues to move forward, and there are many signs that the real estate market may be turning a corner.

Political upheaval, first the overthrow of long-time dictator Hosni Mubarak in 2011, followed by the removal of the democratically elected president Mohamed Morsi, has led to economic stagnation and flight of foreign capital. In recent quarters the government has done much to reassure investors of the stability of Egyptian investments, such as the announcement that foreign oil companies would be paid all monies owed then though a EGP10bn loan secured by the national oil company.

Full Report Details at
- http://www.fastmr.com/prod/912305_egypt_real_estate_report_q1_2015.aspx?afid=301

Although 2014 has been a relatively stable year for post-revolution Egypt, the same cannot be said for the wider Middle Eastern region. Fighting has continued in Syria, while a new sectarian thread has emerged in Iraq in the form of the Islamic State (IS). Saudi Arabia was rocked by a terror attack against a Shi'ite religious gathering. At the same time a dramatic drop in the price of oil has made many Middle Eastern economies more vulnerable and less dynamic, further reducing incentives for foreign investors.

Nevertheless, there are signs that foreign direct investment is cautiously turning towards the Egyptian real estate sector once more. A number of Egyptian real estate developers have reported significant year-on-year rises in profits and revenue. Egyptian developer SODIC saw its market capitalisation reach a new high for the first time since the revolution after posting a 14% rise in y-o-y profit in Q2 2014.

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