A study reveals the distribution of ownership in the cities of eastern New Cairo

Cairo – “Al-Quds Al-Arabi”: A recent study was issued by the Urban Observatory in Egypt, under the title “Who Owns Cairo”, which searches for the ownership of 41,000 hectares of new cities in the east of included Cairo. And it indicated that almost two-thirds of the land covered by the study belongs to 4 identifiable groups of investors, states, private companies and investment funds listed on the stock exchange, while the remaining 35% of the land is owned by thousands . anonymous peasants on the stock exchange, by trade The heat.
The Observatory, which defines itself as a supporter of the fair urban development process, confirmed that 7 families and the UAE, together with the Egyptian government, took the lead in the owners of the land under study.
According to what was stated in the study, property owners, well-known individual investors, or rather families, were the owners of land, as 93 of them owned 36% of the lands included in this study, which indicated that 85% of the ownership of this group is held by just seven investors, with their ownership controlling stakes in five of the ten listed property companies.
Countries were the second largest owners of land, with Egyptian state enterprises and foreign countries owning 25% of the land.
The study drew attention to the uneven distribution of this ownership among four countries, as the Egyptian government was found to control two of the ten companies included in the study, while the government of the United Arab Emirates controlled two other companies , and the governments of Norway and Kuwait own smaller stakes in a number of companies.
In third place, two private companies, whose owners the study could not identify, own 4% of the land investigated, the internationally known “Fenjar” group, which owns small holdings in seven of the ten companies included in the study included, and the Big Investment Group. Ltd., a private investment fund that owns a controlling interest in one of the companies included in the study.
In fourth and final place, large multinational companies listed on the stock exchanges own one percent of the countries surveyed, led by Black Rock, the largest asset manager in the world, and own small stakes in five of the ten companies studied. , followed by « HSBC Holdings, which owns several other small holding companies.

Investors’ nationalities

The study used the method of determining the tax domicile of the last foreign institutional owner (ie a company) to determine the nationality of the investors, which showed that the investors residing in Egypt are the largest investors, by nationality , as they have about half of the land included in the study, and in second place the investors who were resident in the UAE. The United Arab Emirates owned about 16% of the land, and the third largest investor group was of unknown nationalities, and they are foreign investors with small holdings, the majority of which are in the Egyptian Stock Exchange, which is 15% of the countries surveyed , owned, and in fourth place come the Saudi investors with (6.7%), followed by investors from the Cayman Islands (4.7%), the United States. States (3%), and Norway was seventh with ownership of 2% of the land.
Kuwait and the British Virgin Islands own about 1.5% each, while other investors, mostly from Europe, own the remaining one percent of the Cairo land examined in this study.

actual owners

The study found that only six investors own half of the land surveyed in Cairo, while the next six own 10% of the land, while 82 investors own only 5% of the land.
The Egyptian government is the largest single owner of Cairo land listed on the stock exchange, owning 6,400 feddans, or 16% of the land area included in the study, and in second place is Egypt’s Talaat Mustafa- family, owning 5,600 feddans. in Cairo, or 14% of the land. The third has the Saudi Bin Laden family, who owned 2,800 hectares in Cairo or 7% of the land surveyed.
In fourth place comes the government of the United Arab Emirates, which owns 2,500 hectares in Cairo, or 6% of the land examined in the study, with ownership of 1,900 hectares. The Egyptian Mansour family is the fifth largest owner of land in Cairo, and in sixth place is the Saudi Al-Rashed family, as it owns about 1,400 hectares, and the seventh largest landowner is the Egyptian-Saudi-Moroccan family, which owns 1,000 hectares in Cairo, representing 2.5% of the land surveyed.
The government of Norway came in as the eighth largest landowner in Cairo, owning 800 hectares or 2% of the land surveyed through various small stakes held by the sovereign wealth fund, the Bank of Norway.
The ninth largest land owner in Cairo is the global asset management company, Vanguard, which owns 700 feddans or 1.7% of the surveyed land, and in tenth place is the government of Kuwait, which owns 600 feddans or 1.5% of the surveyed land in possession. Cairo.
The Sawiris family is the 11th largest landowner in Cairo, owning 500 feddans or 1.3% of the land surveyed. The United Arab Emirates emerged as the second largest owner, as investors residing there own approximately 16% of the land under study, and investors from Saudi Arabia came in fourth, with an ownership percentage (6 ,7%), followed by the Cayman Islands (4.7%), and the United States (3%), and Norway was seventh with 2% of the study area.
Within a decade, upper-middle-class gated communities, with villas sprawled among golf courses and gardens, became a staple of most new cities.
This phenomenon led to an inflation of real estate investment as an economic activity based on the construction of housing, administrative and commercial buildings on urban lands, until it contributed 11% of GDP.
Despite the expansion of real estate activities, according to the study, this sparked public anger against property development companies. In 2016, housing unit prices began to rise, and as a result, the average house price became out of reach for half of Egyptians. of the high rate of the land commodification process.
While the government is working to stabilize and support food prices, and provide education and health care to large segments of the population, the social housing program barely provides homes for less than half of what poor and low-income families need annually .
The high prices for residential units come despite the fact that vacant, undeveloped land represents a resource known to be abundant in Egypt.

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