We have two updates this morning on the Madbouly government’s program to attract FX through the sale of two things near and dear to the heart of every Egyptian: cars and real estate.

#1- Importing a car on the state FX plan? You need to cough up the cash within 30 days. Some 84k Egyptian expats who have registered in the expat car import initiative and received payment invoices will have to complete their payments within a month from 13 August in order to obtain import approvals, Finance Minister Mohamed Maait said yesterday. Import approvals are valid for a period of five years.

Remember: Launched in November, the six-month scheme was designed to attract new FX into the country by encouraging expats to import cars. Buyers agreed to pay all customs fees and taxes up front in FX and in return will receive a full rebate in the future. The scheme succeeded in attracting USD 900 mn in FX inflows.

Get a 30% customs tax refund: Those who paid 100% of the customs tax before the 70% tax break came into play can now apply for refunds to their USD bank accounts in Egypt or in their country of residence, Maait added.

What’s a “brand new” vs. a “used” car? Buyers bringing in a never-before-used car can import a vehicle of any model year. Folks who want to import a used vehicle will be limited to model years that are less than three years old at the time the vehicle receives customs clearance.

Want out? Buyers who change their minds and want to withdraw their deposits can do so only after one year of receiving the import approval and will be able to receive refunds in EGP in a period of three months at the official exchange rate, said head of the Customs Authority El Shahat Ghatwary.

REAL ESTATE FOR FX -

#2- Honing in on the gov’t plan to draw FX through real estate sales: The cabinet yesterday reviewed recommendations for its plan to attract hard currency through the sale of Egyptian real estate to both foreigners and Egyptian expats, according to a cabinet statement. A number of draft laws that aimed at encouraging foreign ownership of real estate will soon be sent to the cabinet, the cabinet said, without providing further information.

Remember: The government is planning to lift the cap on foreign ownership. Under draft rules put forward by the government last month, the current cap on the number of properties foreigners can own will be lifted, allowing them to purchase as many as they like. The move was one of the 22 reforms approved by the Supreme Investment Council in May aimed at improving the local investment climate. Expect a bill to hit the House of Representatives when MPs return from the summer recess in October. Check out our detailed coverage on the topic here.

Financializing the sector: Cabinet is considering establishing a real estate fund comprising income-generating administrative and commercial properties, according to the statement. Policymakers are also discussing the idea of allowing investors to trade real estate assets on the EGX, including via a separate exchange for buying and selling shares in properties.

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