More on the real-estate-for-FX scheme: Real estate developers are in discussion with the government over incentives for Egyptian expats and foreigners who opt to pay in foreign currency for purchase properties in Egypt from private-sector developers. Tarek Shoukry, the head of the Federation of Egyptian Industries’ real estate division told Enterprise. The program and incentives would be modeled on the expat car import initiative, he said.

Shoukry’s remarks came days after the Madbouly government said last week it is working on a new initiative that would extend a real-estate-for-fx scheme to private sector players.

100% cashback? The initiative could see home buyers pay 100% of the property price in cash in advance in exchange for an equivalent bank deposit, which would be refunded after 10 years, Shoukry explained.

Mechanism: It has not yet been determined whether the deposit will be refunded in FX or its equivalent in EGP at the time of redemption, Shoukry said. The initiative will be limited to foreigners and Egyptians abroad only, he added. Shoukry also stopped short of specifying a mechanism through which the state would finance the program.

BACKGROUND- The government approved in July a decision to remove the cap on the number of properties foreigners can own provided that they pay for the properties in hard currency. The loosening of restrictions was one of a basket of measures the cabinet enacted in a bid to ease the FX crunch.

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