Minister of Housing: Approval of a new system for allocating investment opportunities in new cities
Cairo – Nihad Imad: Minister of Housing, Utilities, and Urban Communities Randah Al-Manshaoui announced the adoption of a new allocation system for land plots, aimed at achieving the highest levels of seriousness and transparency, and directing land to companies most capable of executing projects within specified timelines. The system also provides greater flexibility for Egyptian and foreign investors in the application and payment processes, as part of the Ministry’s broader strategy to develop the land allocation framework and enhance the efficiency of managing investment opportunities in new cities.
The Minister of Housing, Utilities, and Urban Communities stated that the new system not only seeks to streamline application procedures for investment opportunities but, primarily, to raise the level of seriousness in applications and strengthen companies’ execution capabilities. It aims to curb practices that do not add genuine value to development, foremost among them the resale and speculation of land.
She emphasized that the new system also aims to transition to a more effective land allocation model based on selecting investors capable of actual execution, rather than merely those capable of applying. Additionally, it seeks to transform every allocated investment opportunity into a real project that contributes to the economy, creates jobs, and supports urban development. She noted that the Ministry monitors project implementation and is committed to enforcing regulations on all companies without exception.
The Ministry and the New Urban Communities Authority are continuously working to develop tools for interacting with investors, ensuring a balance between facilitating investment and safeguarding state rights. The ultimate goal is to accelerate project implementation and increase development and urbanization rates in new cities.
For his part, Dr. Walid Abbas, Deputy Minister of Housing for Urban Communities, clarified that a key feature of the new system is the modification of the application process for investment opportunities. Investors wishing to apply must pay the full required advance payment for the opportunity at the time of application, along with administrative fees and the Trustee Council fees, in accordance with established regulations. He explained that this approach represents a significant shift in the philosophy of land allocation; it is no longer sufficient to pay a deposit to reserve a plot and complete the rest of the advance payment after the allocation decision is issued. Instead, the availability of the required advance payment at the time of application has become a primary indicator of a company’s capability and seriousness in executing the project.
He added that application and selection procedures are conducted electronically through the Investors’ Services Portal, where investment opportunities are made available with clear details on areas, activities, prices, and governing regulations. This supports the principles of transparency and equal opportunity. The electronic system also allows for the submission of financial offers and required documents, and enables electronic selection based on approved regulations, ensuring procedural speed and enhancing the efficiency of the allocation process.
Regarding foreign investment, Dr. Ahmed Omara, Supervisor of the Real Estate and Commercial Sector, revealed the introduction of a new electronic system for handling foreign investors’ transfers. This involves creating a “SWIFT Wallet” that allows investors to register transfers made to the New Urban Communities Authority and deposit them into an electronic wallet linked to their account. This mechanism aims to facilitate SWIFT procedures within the Authority and provide greater flexibility for foreign investors in using previously transferred funds, rather than tying each transfer exclusively to a single investment opportunity.
Omara added that investors can use registered SWIFT funds in their electronic wallet to apply for available investment opportunities. He noted that the new system also enables the Authority to monitor financial transfers related to investment opportunities electronically and in an organized manner, supporting procedural speed and improving efficiency in handling requests from foreign investors.
He clarified that the allocation system is not limited to a single mechanism but includes a range of options allowing investors to apply according to the nature of each opportunity and each company’s capabilities. These include allocation through Egyptian Pound sales, allocation in foreign currency for foreign investors and companies, usage permits, allocation through deduction of financial dues, and a mechanism for major developers and investors (“VIP”). This diversity aims to increase the flexibility of the investment system, broaden the base of targeted investors, and maintain standards of seriousness, financial capacity, and technical capability, while linking each mechanism to regulations appropriate to the nature of the investment opportunity.
