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
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.