Egypt suspends land allocation system in foreign currency

The ministry stated that during this suspension period, it will assess all allocations related to the system to ensure alignment with the Central Bank of Egypt's foreign exchange policies.

However, Housing Minister Assem El-Gazzar clarified that non-Egyptian investors and companies will be exempt from this decision.

In late 2022, amidst a foreign currency liquidity crisis, Egypt established a system for allocating land in exchange for dollars transferred from abroad to attract foreign currency.

The system allowed direct land allocation for foreign investors without requiring them to participate in the usual bidding processes, provided that the full value of the land was paid in US dollars and transferred from outside Egypt.

Deputy Minister of Housing for the Planning Sector Walid Abbas told news website Youm7 that the initiative successfully brought nearly 10 billion US dollars into the Egyptian state treasury in less than a year and a half.

He explained that the land allocation policy was a good decision aimed solely at supporting the state's dollar resources and bolstering foreign currency reserves.

In February, Egypt and Emirati investors signed a historic deal to build a new multi-billion city in Ras El-Hekma, including a massive urban, business and tourism centre, which allowed the country to deal with its steep foreign currency shortage.

Furthermore, Egypt is engaged in an IMF-backed $8 billion loan programme until 2026, designed to address the Egyptian economy’s imbalances and help the country attract more foreign direct investments.