Egypt offers residency to foreign investors

Egypt will grant residency permits to foreigners who invest at least $100,000 in the country’s property market. Above, a panorama of the Egyptian capital, Cairo. (AFP)
Updated 21 November 2018
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Egypt offers residency to foreign investors

  • A three-year residency is on offer for those who invest $200,000, and five years for those who purchase property worth $400,000
  • To begin the process for obtaining Egyptian residency, a preliminary contract must be agreed between the property owner and the foreign investor

CAIRO: In an attempt to further boost its booming real estate sector and attract foreign investment, Egypt will grant residency permits to foreigners who invest at least $100,000 in the country’s property market.
The growth rate of Egypt’s property market stands at 133 percent in 2018. This has been fueled by strong demand for housing, along with the sporadic launch of residential construction projects.
The minimum investment required to obtain a residency permit is $100,000. A three-year residency is on offer for those who invest $200,000, and five years for those who purchase property worth $400,000. The offer also applies to properties that are still under construction.
Khaled Abbas, the deputy minister of housing, said the procedures for the scheme are being set up in consultation with the Passport, Immigration and Nationality Administration.
To begin the process for obtaining Egyptian residency, a preliminary contract must be agreed between the property owner and the foreign investor, and then signed by an authorized body, such the Urban Communities Authority, the Tourism Development Authority or the governorate in which the property is located. Bank statements must also be provided confirming that the money has been transferred from overseas. The passport office will then approve the period of residence.
Members of the House of Representatives welcomed the announcement as a positive move for Egypt and an incentive for foreign investment, which it is hoped will create jobs and economic opportunities.
Whether the public will be so keen remains to be seen.
“This might be a bit problematic,” said Aly Salem, a resident of Cairo. “The housing demand in Egypt is already high, with the surging youth population and more and more people looking to get married each year. Where will they stay, if foreigners start swooping in and acquiring both residency and a huge housing unit with just $100,000?”
Offering further details, Gen. Kamel Amer, the head of the Parliament’s Defense and National Security Committee, said foreigners will not have any political rights for the first five years of residency and they will not be eligible to vote for 10 years. He also said spouses and children of investors will not be granted residency unless they live in Egypt.
Spain and Portugal have implemented similar programs in an attempt to boost their property markets. Previously, a foreigner had to live in Egypt for 10 consecutive years to be eligible for naturalization.
The new residency law is part of the efforts to repair the damage to Egypt’s economy caused by severe austerity measures imposed after the $12 billion loan package from the International Monetary Fund in 2016.
The cost and size of properties in Egypt, which are often large and lavish apartments, compare favorably to those in many other countries. Despite this, few Egyptians can afford to pay for a house upfront, but some private property developers are offering 10-year, interest-free installment plans.


Israel locks down Ramallah after two soldiers shot dead

Updated 14 December 2018
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Israel locks down Ramallah after two soldiers shot dead

  • The bloodshed began when Israeli forces shot dead two Palestinians
  • Hours later, a Palestinian gunman killed two Israeli soldiers and wounded a third

AMMAN: Israel was accused on Thursday of humiliating Palestinian President Mahmoud Abbas by placing Ramallah on virtual lockdown amid a 24-hour outbreak of violence in which five people died.

The bloodshed began when Israeli forces shot dead two Palestinians suspected of earlier attacks. Salah Barghouti, 29, was accused of shooting seven Israelis on Sunday at a bus station near the Ofra settlement. Ashraf Naalwa, 23, shot two Israelis dead in the Barkan industrial zone settlement in October.

Hours later, a Palestinian gunman killed two Israeli soldiers and wounded a third when he opened fire at the Ofra bus station.

Israeli forces chased the gunman into Ramallah, where they set up road blocks, launched raids and placed the town under virtual siege. In the hunt for the gunman, a Palestinian was shot dead in Al-Bireh neighborhood of Ramallah.

Abbas Zaki, a leading Fatah official, told Arab News Palestinian frustration was being fueled by Israel. “They barged into Ramallah in violation of existing agreements and came very close to the home of President Abbas.

“What more do people need to see to let them give up on a process when Israelis are willing to humiliate in such a way the father of Palestinian peace?”

Abbas himself condemned the anti-Israeli attacks but blamed Israeli raids as a potential cause.

“The climate created by the policy of repeated intrusions into the cities, the provocations against the sovereignty of the president and the lack of a horizon for peace are what led to this unacceptable violence that we condemn and reject,” he said.