After three years following the approval of the Egyptian Financial Supervisory Authority (EFSA) for establishing real estate funds, Egypt will enter the real estate funds sector through launching three funds at once during the first half of this year. Although the real estate funds in Egypt are subjected to taxes, their launch coincides with problems currently faced by the real estate companies to borrow from banks—due to the high interest rates following the flotation of the pound in early November 2016. The size of real estate investment funds in Saudi Arabia is estimated at $10bn, as real estate investment is a top priority for investors across the country. Saudi Arabia and the UAE grant real estate funds tax exemptions and instead make them pay real estate taxes on the projects they establish. Non-banking financial tools, including real estate funding, financial leasing, and launching real estate funds, all contribute to developing the real estate sector and accelerating growth rates in Egypt.

Source: Daily News Egypt March 19, 2017 07:30 UTC