Egypt offers residency to foreign investors

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

Egypt offers residency to foreign investors

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.


Abbas poll decree lifts hopes of Palestinian unity

Abbas poll decree lifts hopes of Palestinian unity
Updated 48 min 11 sec ago

Abbas poll decree lifts hopes of Palestinian unity

Abbas poll decree lifts hopes of Palestinian unity
  • First elections in 15 years “will usher in badly needed democracy”
  • The PA will hold legislative elections on May 22 and a presidential vote on July 31

AMMAN: Palestinian President Mahmoud Abbas’s announcement of the first parliamentary and presidential elections in 15 years has raised hopes of an end to longstanding divisions, but skeptics doubt it will bring about serious change.
According to decrees issued by the presidential office on Friday, the Palestinian Authority, which has limited self-rule in the Israeli-occupied West Bank, will hold legislative elections on May 22 and a presidential vote on July 31.
Hanna Naser, head of the Palestinian Central Elections Commission, told a packed press conference a day earlier that the decrees will usher in a badly needed democratic process.
Naser said the elections will be transparent and will deliver a functioning legislative council, adding: “After 15 years without a legislative body, it is important to have accountability through a council elected by the people.”
Jibril Rajoub, secretary of the Fatah movement and a key force behind the election deal, said on Palestine TV that the decrees are a major breakthrough and reflect a Palestinian commitment to democratic principles.
Rajoub said that the elections commission will be responsible for all aspects of the poll, and that a meeting of all Palestinian factions next week in Cairo will help resolve any remaining issues.
Hussein Sheikh, minister of civil affairs and member of the Fatah Central Committee, tweeted that the presidential decrees are “an important step to strengthen democracy and partnership in a unified political regime that ensures the end of the split and will create a unified vision for a cooperative effort aimed at ending the occupation and accomplishing freedom and liberty for our people.”
Hamas welcomed the decrees, which include a commitment by all participants that the PLO represents Palestinians, and is responsible for foreign affairs and negotiations.
The decrees stipulate elections for a 132-member legislative council that will include Palestinians in the West Bank and Gaza on a full proportional basis.
Presidential elections will follow in July and the Palestine National Council will hold elections wherever possible for candidates in different locations. All lists must have a woman as the third and fourth candidates on the list, with at least 26 percent of the next council to be female.
However, Ghassan Khatib, a lecturer at Bir Zeit University and a former minister, told Arab News that while he strongly supports the elections, he is worried about the quality of the poll.
“I am concerned that the elections will reflect the wishes of the political elite since the lists will be national and will be made up by political leaders who might not give enough attention to local communities and their needs,” he said.
Khatib, who founded the Jerusalem Center for Communication Studies, said that polls show Fatah could win the coming elections if it can present a unified list.
Hani Masri, director of the Masarat think tank, said that holding elections before national reconciliation is complete is a “formula for trouble.”
“Issuing presidential decrees for elections before reconciliation is doing things in reverse order,” he said. “To have elections, the land mines must be removed. If we don’t address some of these problems, we are inviting trouble,” he wrote on his Facebook page.
One suggestion to overcome this issue has been that the two main parties, Fatah and Hamas, agree on a joint list and a single nominee for president.
Marwan Muasher, vice president of Carnegie Endowment for International Studies, told Arab News that national unity is a necessary first step.
“National elections serve to renew Palestinian legitimacy, which has been significantly affected,” he said.
Palestinians are also unsure if Israel will allow East Jerusalem residents to take part in the elections. Under the Oslo accords, Jerusalem residents can vote at local post offices.