Friday 18 Oct
Businessman Naguib Sawiris, Chairman of Orascom Telecom Holdings, has identified several new challenges facing the Egyptian real estate sector. Among the most pressing is the recent surge in interest rates.
Speaking at the American Chamber
of Commerce conference, Sawiris noted that the rising cost of borrowing has led
some developers to offer financing to their customers, which is not their core
business. He noted that the rise in interest rates to current levels is not
supportive of the real estate sector, which accounts for 35% of Egypt's GDP and
has played a major role in driving GDP and creating millions of jobs.
Sawiris further highlighted the impact of increased construction material costs, particularly for iron and cement, on the sector's profitability.
