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.


Jordan’s PM appeals for more aid as most Syrian refugees set to stay

Updated 20 February 2019
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Jordan’s PM appeals for more aid as most Syrian refugees set to stay

  • Jordan PM says most refugees not returning yet
  • Amman says funding crucial to keep economy afloat

AMMAN: Jordan’s Prime Minister Omar Al-Razzaz appealed on Wednesday to major donors to continue multi-billion dollar funding for Syrian refugees in the kingdom, saying most of those who had fled the eight-year conflict had no intention of returning any time soon.
Razzaz told representatives of major Western donors, UN agencies and NGOs that relatively few refugees had gone back since Syrian President Bashar al Assad’s army last summer regained control of southern Syria, where most had fled from.
“The number of refugees that so far returned voluntarily is low and most have no intention of going back any time soon,” Razzaz told a meeting to launch a UN-funded government plan that earmarks $2.4 billion in funding needs for 2019.
Officials say only around 10,000 refugees out of a total estimated at 1.3 million had left since the two countries opened the vital Nassib-Jaber border crossing last October.
Razzaz echoed the UN view that unstable conditions inside Syria, where large-scale destruction, fear of retribution and military conscription has made many reluctant to return.
“We are now entering a new phase of the Syrian crisis, however the impact is still ongoing. The conditions for their return are not present,” Razzaz added.
The prime minister warned against donor fatigue in a protracted crisis where the needs of refugees and vulnerable Jordanians were largely unchanged.
Maintaining funding that covers education, health and crucial services for tens of thousands of Syrian refugees and local communities was crucial to ease rising pressures on the debt-burdened economy, he added.
“Aid helped Jordan in staying resilient in a difficult regional setting,” Razzaz said, adding the refugee burden had strained meagre resources such as water and electricity, with a donor shortfall covered from state finances.
Jordan is struggling to rein in record public debt of $40 billion, equivalent to 95 percent of gross domestic product, under a tough International Monetary Fund (IMF) austerity plan.
Major donors say more than $6 billion had been extended to Jordan since 2015, which economists credit for rejuvenating once sleepy northern border towns, while refugee entrepreneurship brought a pool of cheap labor and new skills, triggering a property boom and higher productivity.
The kingdom received around $1.6 billion last year alone.
“The level of funding to Jordan that still remains is exceptional in global comparison,” said UN Resident and Humanitarian Coordinator Anders Pedersen, adding needs had evolved from the humanitarian aid required early in the conflict to development projects that benefit the economy.