Egypt generates capital to fund a decade of growth

Posted on: August 25, 2010

Written by Max Bielby

The finance ministry of Egypt have recently held an auction for their newly re-opened 5-year bond. The central bank are selling LE 1.5 Billion ($263 million) worth of bonds which mature in 2015 with a 12.55% coupon.

The re-opening of these 5-year bonds demonstrates the confidence the Egyptian authorities have in their growth plans using the funds raised for further infrastructural investment.

One such project is the joint real-estate enterprise, Al Fatih City. Egypt has established a company in conjunction with Libya worth over $100 million which will oversee the development on the outskirts of Cairo. Libya will contribute 75% of the capital, endorsing the investment potential of Egypt’s real-estate market.

In addition to these large-scale real estate developments, Egypt is also investing heavily in other areas. The nation continues to implement innovative and pioneering concepts, following the successful completion of the ‘Smart Village’, a modern business park near Cairo. The project is home to 120 businesses, 20 of which are multinational companies and over 28,000 business professionals. It is expected to host more than 500 companies and 100,000 employees by 2014.

Another major venture currently in progress is Egypt’s plan to have 20% of their energy created using wind power by the end of the decade. Steps taken to achieve this include a L.E 1.2 Billion grant from the World Bank’s ‘Clean Energy Fund’ which is in full support of Egypt’s vision to become the leading MENA nation in this field.

The multitude of position activities currently underway in Egypt suggest the country is primed and ready for the growth expected over the next few years. This is excellent news for those who have invested in the nation’s real-estate market who are expected to capitalise on this growth with strong financial returns.