A United Arab Emirates (UAE) real estate developer has launched a major residential property scheme in Egypt.
The ‘Alburouj’ project, with a total investment of $4.5bn (EGP40 billion), will create 30,000 housing units on 1,212 acres between Suez and Ismailia Desert Road, local media reported.
The developer is Capital Group Properties, whose shareholders are Abu Dhabi Capital Group and Al Ain Properties, of the UAE.
"Capital Group has trust in the Egyptian real estate market," Jassim Al-Seddiqi, chief executive of Abu Dhabi Capital Group, told a press conference on 28 March.
"There have been positive developments on economic and political levels in the market, especially as the government is looking to permanently eradicate obstacles facing local and foreign investors, which is further driving the group to strengthen its presence in the Egyptian market."
Capital Group Properties has paid $100m to Egypt’s New Urban Communities Authority to change the site’s licence from touristic to urban habitable, Al-Seddiqi said, adding that that was the first instalment of the full amount required in fees and to deliver utilities to the site.
The group’s own chief executive, Walid El-Hindi, said the project would provide 50,000 Egyptian jobs.
In a press statement earlier this month Capital Group Properties said the scheme would provide modern residential units at competitive prices, and that it aims to provide housing to all segments of society.
During the press conference, Egypt’s minister of housing Mostafa Madbouli said that the government is keen to overcome any obstacles and called for Arab investors to work in the Egyptian market.
Egypt is facing a severe housing shortage, and an highly ambitious scheme to build a million affordable homes using another UAE company, Arabtec, has stalled amid confusion over the project’s status.
Photograph: Cairo, Egypt, from the air. Egypt is experiencing a severe housing shortage (Wikimedia Commons)