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News Release

Cairo

Agreement on IMF loan will increase confidence in the Cairo Real Estate Market

The preliminary agreement reached between the Egyptian Government and the IMF suggests that the proposed loan of US$ 4.8 billion


​​​The preliminary agreement reached between the Egyptian Government and the IMF suggests that the proposed loan of US$ 4.8 billion could be approved by the end of 2012, with the funds to be released in 8 quarterly tranches over a period of 22 months.

While this deal does not guarantee an immediate uplift in the broader economy, it will help to stabilise both the currency and the national reserves and will therefore reduce pressures on the economy as a whole. This agreement also represents an important vote of confidence by the IMF in the economic credentials of the new government.
 
In our latest report on the Cairo market (Q3 2012), JLL MENA notes that the stabilisation of the political situation and the macro economy are important pre-requisites for a return to growth of the Cairo real estate market. 
 
According to Ayman Sami, Head of JLL MENA’s Egypt Office:
 
“The preliminary agreement on the IMF loan represents another important step in the return of confidence to the Egyptian economy.  While there remain further important steps to overcome, most notably the approval of a new constitution, the improving economic and political landscape is likely to translate into increased confidence towards the real estate sector.  Many investors and corporate occupiers have been postponing real estate decisions over the past eighteen months.  As clarity and confidence return, we expect an increase in both market activity and performance in 2013.”  
 
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