Country Guide to Egypt
- Area: 1 million sq km
- Population: 79 million (July 2006 est.)
- GDP: $92.6 billion (2005 est.)
- GDP per capita: purchasing power parity $3,900 (2005 est.)
- Main resorts: Luxor, Aswan, Sharm el-Sheikh, Dahab
- Major Airports: Cairo, Luxor, Borq El Arab
- Flight Time from UK: 4h 45min (London-Cairo)
- Time: GMT +2 (GMT +3 from last Friday in April to last Friday in September).
Overview
Egypt’s ancient archaeological wonders (the pyramids, temples, mosques, great monuments of the Nile Valley…) as well as the stunning diving resorts of the Red Sea, attract millions of tourists each year.
Bordered to the north by the Mediterranean, to the south by Sudan, to the west by Libya, to the east by the Red Sea and Israel, and divided unevenly in two by the River Nile – more than 90% of the population live in the lush, green, highly cultivated Nile Valley and Delta. The Aswan Dam, as well as producing electricity, now controls the annual floods that once put much of the Nile Valley under water.
Narrow strips are inhabited on the Mediterranean coast and on the African Red Sea coast. The coast south of Suez has fine beaches and the coral reefs just offshore attract many divers.
Egypt is also known for its strategic importance at the centre of the Arab world, playing a principal role in the region’s political situation in modern times. After three wars in 1948, 1967 and 1973, peace was achieved with Israel in 1979 leading to Egypt's expulsion from the Arab League. In 1991, President Hosni Mubarak oversaw the return of Egypt to the Arab League. Since then, Egypt has played a vital role in the Middle East Peace Process.
Tourist Industry
Egypt has long been one of the world's premier destinations. Its mix of ancient history, year-round sun and Red Sea diving attracts up to five million visitors each year. Tourism is the country's number one foreign currency earner, producing about $4bn a year and accounting for more than 11% of GDP.
However, at the start of the war in Iraq, the number of tourists visiting Egypt fell by about 25%, threatening the country's entire economy. Fortunately, the recovery was almost instantaneous. With a mix of heavy discounts and seemingly more courageous travellers, visitor numbers have been reaching an all-time high. In 2007, tourism arrivals in Egypt are expected to continue their upward trend, with international arrivals set to increase to 13.4 million by 2011.
Recent years have also seen a significant increase in wealthy Arab visitors, particularly Saudis who no longer feel so welcome in Europe and the US. Surprisingly, given the regional tensions, the number of Israeli tourists has almost trebled according to latest figures.
Tourist Arrivals (in thousand)
Tourism receipts (US$ million)
Property Market
As the Egyptian government continues its aggressive series of reforms designed to boost foreign direct investment, reduce a budget deficit and further stabilise its political and economic standing, 2007 is likely to be one of the best years for investors to benefit from property bargains in this emerging market.
Indeed, DAMAC Properties, the Middle East’s largest private sector luxury property developer is the latest in a long line of names to agree terms with the Egyptian government for the construction of amazing property developments across the country. DAMAC are to construct a 320 million square feet development comprising 55,000 housing units across nine distinctive residential zones over the next ten years and plough billions of dollars of investment into their Gamsha Bay project at the north of Hurghada.
Egypt’s new property market may be emerging, but it is a market with all the right ingredients for long term success and is certain to witness strong price gains in the not too distant future.
Property prices in Egypt remain incredibly low while an ever increasing tourist economy is a clear indicator that property prices in many areas will continue to rise at an unprecedented rate. In 2006 alone, annual growth rates of 20-30% were typical in the prime property locations such as the Red Sea and around the residential satellites of Cairo.