Egypt is one of the most appealing African countries to invest in. In terms of GDP, Egypt is the wealthiest African country (PPP). According to IMF estimates from 2021, Egypt’s economy grew by an amazing +3.6 percent real GDP. By 2022, it is expected to expand at a rate of 5.5 percent. The global economy is expected to increase 5.5 percent in 2021 and 4.2 percent in 2022, according to the IMF. Although recent vaccine approvals have fuelled optimism for a pandemic turnaround later this year, recurrent waves and new virus types raise concerns about the prospects. With a sharp surge in pricing and development activity, Egypt’s real estate industry is set to boom in 2021.
Egypt published a new law in 2020, initiating a Citizenship by Investment program. Investors can now obtain Egyptian citizenship and a passport through one of the following investment options:
- Real Estate Investment Option: With a minimum investment of $500,000 USD, the investor can purchase one or more properties from a government-owned project.
- Company Formation Option: An investor has the option of forming a new firm in Egypt or investing in an existing company in Egypt. This option necessitates a new minimum investment of $400,000 USD, as well as a share in the company of at least 40%. This is in compliance with the provisions of Investment Law No. 72, which was enacted in 2017.
- Donation Option: The investor must make a non-refundable donation of $250,000 USD to the CIU account at the Central Bank of Egypt. Investors may also apply through the Central Bank of Egypt’s deposit investment program if they so desire. The applicant must make one of the following bank deposits to be considered for this program.
- Option 1: Make a $750,000 USD bank deposit in Egyptian local currency, which will be refunded after 5 years.
- Option two: Make a bank deposit of $1,000,000 USD in Egyptian local currency, recoverable after three years and without interest. The overall goal of this program is to allow a foreign investor to earn Egyptian citizenship through investing in Egypt’s economic development.
The list of required documents for applying for Egyptian citizenship includes, but is not limited to, the main applicant’s personal documents, spouse(s), and dependents. A clean criminal record and a detailed medical report are required of the main applicant. In addition to other documentation pertaining to themes like wealth and funding sources.
The new law specifies the five alternative program options and associated investments that an applicant must choose from in order to get Egyptian citizenship. All projects must be supported by investments transferred from outside Egypt, according to the Central Bank of Egypt’s regulations. The funds should be transferred in US dollars.
Obviously, you must evaluate the advantages and disadvantages before applying for citizenship by investment in Egypt and assessing the benefits.
- Only 50 nations are visa-free or visa-upon-arrival, which is a rather modest amount. And the vast majority of them are small and third-world countries, with no Schengen zone members such as the United Kingdom, Canada, Singapore, Japan, or even the Russian Federation. For international businessmen and active travelers, this is not the best option.
- There are no additional economic benefits available to new citizens. On the one hand, the government does not impose restrictions on foreign investment projects; on the other hand, foreigner ownership of agricultural land and real estate on the Sinai Peninsula is prohibited.
- The possibility of an investor’s family members to get citizenship is restricted. The investor’s spouse and children who do not live in Egypt continuously will not be eligible to obtain a passport.
- The investor’s citizenship may be withdrawn if he or she:
- submitted false information when filing a petition or obtained a passport through fraud;
- Without a good reason recognized by the ministry of interior, does not stay in Egypt for more than two years in a row;
- Was condemned to prison after being found guilty of committing a major offense;
- Convicted of a crime that caused harm to the state, whether the offense was done in Egypt or outside;
- Became a member of any group, association, or organization with the goal of undermining the country’s economic, social, or public order.