10 years tax exemption, trans­fer of prof­its abroad re­vive Egypt’s real es­tate sec­tor

It is im­por­tant that the ex­ec­u­tive reg­u­la­tion of the In­vest­ment Law in­cludes items re­lated to lux­ury hous­ing, says ARDIC man­ag­ing di­rec­tor

The Daily News Egypt - - Business / Real Estate -

TRANS­FER OF PROF­ITS ABROAD WITH­OUT RE­STRIC­TIONS WILL OPEN THE EGYP­TIAN MAR­KET STRONGLY TO FOR­EIGN IN­VESTORS

On Sun­day, the Egyp­tian par­lia­ment ap­proved the new In­vest­ment Law on a fi­nal ba­sis, to be sent to the pres­i­dent of the repub­lic to is­sue a de­cree of the law.

Tabarak Hold­ing for Real Es­tate chair­per­son Ali El-Shor­bany said that the In­vest­ment Law in­cludes sev­eral ad­van­tages and fa­cil­i­ties to en­cour­age in­vestors to start busi­ness in the coun­try.

El-Shor­bany told Daily News Egypt that the item of a one-stop shop is very im­por­tant for any in­vestor and real es­tate de­vel­oper to op­er­ate. How­ever, all min­istries must agree with re­spect to the land un­der their au­thor­ity and form a govern­ment in­sti­tu­tion re­spon­si­ble for the sale, pur­chase, and leas­ing of the lands.

El-Shor­bany added that tax exemption for 10 years will ben­e­fit the sec­tor, be­cause the value of taxes has es­ca­lated re­cently and reached about 45%,which is a ma­jor ob­sta­cle to de­vel­op­ers and in­vestors.

“Fur­ther­more, trans­fer of prof­its abroad with­out re­stric­tions will open the Egyp­tian mar­ket strongly to for­eign in­vestors to pro­mote and strengthen the Egyp­tian econ­omy,” said El-Shor­bany.“The new law will pro­mote sell­ing prop­erty to for­eign­ers [ex­port real es­tate].”

He pointed out that the new law will help pump new investments in the real es­tate sec­tor, as it proved that it is not vul­ner­a­ble to be­ing af­fected by any eco­nomic fluc­tu­a­tions, whether the dol­lar value moves pos­i­tively or neg­a­tively, be­cause it is the only in­dus­try that can bear and face any crises. Be­sides, the de­mand will not end,be­cause the steady in­crease of the pop­u­la­tion is one of the most suc­cess­ful investments and the safest in the world.

The to­tal value of the real es­tate sold to for­eign­ers world­wide is es­ti­mated at about $200bn.

For his part,Ashraf Dowidar, the man­ag­ing di­rec­tor of ARDIC for Real Es­tate De­vel­op­ment, said that the law con­tains many pos­i­tives, in­clud­ing all the ben­e­fits of other in­vest­ment laws.

Dowidar as­sured that the im­por­tance of the ex­ec­u­tive reg­u­la­tion of the In­vest­ment Law in­cludes items re­lated to lux­ury hous­ing, be­sides fo­cus­ing on so­cial and eco­nomic hous­ing.

He pointed out that the process of at­tract­ing investments is an in­te­grated sys­tem, which means cre­at­ing the gen­eral at­mos­phere, as well as­pro­vid­ing ad­vanced train­ings for Egyp­tian labour, which stim­u­late in­vestors to take ad­van­tage of these train­ings rather than em­ploy­ing for­eign labour.

Sahl Al Dam­rawi, a mem­ber of the As­so­ci­a­tion of Busi­ness­peo­ple and of the Union of Build­ing and Con­struc­tion said that the new In­vest­ment Law will at­tract for­eign di­rect in­vest­ment and fade away and ad­dress the dis­tor­tions of the pre­vi­ous law.

Al Dam­rawi sug­gested that an in­vest­ment map be pre­pared for in­vest­ment in lands and clar­ify all data re­lated to these lands.

To­tal world­wide value of the real es­tate sold to for­eign­ers is es­ti­mated at about $200bn

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