Middle East sovereign wealth funds plan to inject as much as $120 billion into Egypt, Knight Frank MENA said in its Africa Horizons 2023/24 report, signalling the state investors’ strong confidence in the North African country’s growth opportunity.
“Egypt’s magnetic blend of rich heritage, strategic geographical location, and burgeoning economy propels it to the forefront of investment destinations,” said Zeinab Adel, Partner – Head of Egypt Office at Knight Frank MENA.
The UAE invested in 71 projects worth a record $5.6 billion in 2021 alone, with the most significant being The Agtech Park. The agricultural technology (agtech) park, which is backed by the Abu Dhabi Fund for Development, is aimed at enhancing the country’s agricultural productivity and promoting innovation in the sector.
Knight Frank MENA said there is a renewed surge in global interest in the African continent, with a keen focus on Egypt, underscored by substantial investment commitments from major global powers including the UK, UAE, Saudi Arabia and Turkey.
In the real estate market, Cairo is an outstanding prospect for investment, according to Knight Frank. The vibrant city is home to over 20 million people, making it a bustling metropolis. Egypt’s impressive portfolio of approximately two billion square feet of active real estate offers immense growth potential.
“Egypt has always held a special place in the minds of GCC investors and we are starting to see a demand renaissance of sorts, with buyers increasingly looking at the Egyptian second homes market, particularly on the north coast of the country,” said Faisal Durrani, Partner – Head of Middle East Research at Knight Frank MENA.
Cairo’s real estate landscape centres on a thriving residential sector. Total real estate investments in the city soared to $20 billion in 2022, with $16 billion dedicated to the residential sector. Similarly, average residential property prices increased around 10% during the same year, affirming the sector’s burgeoning interest.
