Ahmed Kamel – Egypt Daily News
In a sweeping policy shift aimed at restructuring land use and revenue in Egypt’s North Coast, the New Urban Communities Authority (NUCA), affiliated with the Ministry of Housing, has introduced new financial regulations targeting both foreign and local real estate developers. The move includes the imposition of a $20-per-square-meter fee on real estate projects primarily developed by foreign investors, with proceeds directed to the “Tahya Misr” (Long Live Egypt) Fund.
According to a confidential official document, the new fees must be paid in full and will apply to developments in the upscale and rapidly expanding North Coast region, a stretch of Mediterranean coastline increasingly favored by luxury developers and international investors.
For Egyptian developers, NUCA has unified the land-use fees at EGP 1,000 per square meter, consolidating three previously tiered categories into one. Local developers are required to pay 20% of the fees upfront, with the remainder spread over five years at the Central Bank of Egypt’s (CBE) prevailing interest rates, which currently stand at 24% for deposits and 25% for overnight lending.
Shift in Strategy Amid Developer Pushback
This regulatory overhaul comes amid growing government efforts to standardize and reassert control over one of the country’s most strategic development corridors. The North Coast, stretching approximately 500 kilometers from El Alamein to Salloum and covering over 160,000 square kilometers of desert hinterland, has attracted significant attention for its potential to become a global year-round tourism hub.
However, the policy changes have not been without controversy. Many developers have expressed concern over the financial burdens and the pace of implementation. Just last month, NUCA introduced variable fees depending on a project’s location ranging from EGP 500 per square meter for land south of the coastal highway, to EGP 1,000 per square meter for beachfront properties. These rates have now been standardized in the new framework.
In a more assertive move, NUCA has suspended transactions with 50 companies and entities that had either transferred their development rights to other parties without proper authorization or failed to comply with earlier fee requirements. These entities have been given one month to settle their dues or risk being cut off from essential government services, including electricity and water.
Among the prominent names on the list are leading real estate firms such as Palm Hills, SODIC, Tatweer Misr, Al Ahly Sabbour, Al Rajhi, Emaar Misr, Mountain View, Al Marasem, La Vista, and El Arjani Group. Each has received formal notifications demanding immediate fee settlement to avoid administrative and legal consequences.
“Tahya Misr” Fund and Strategic Redevelopment Goals
Proceeds from these newly imposed fees will be channeled into the Tahya Misr Fund, established in 2014 by presidential initiative to support economic development, reduce poverty, and drive inclusive growth. The fund operates under the administrative oversight of the Prime Minister and is positioned as a key financial mechanism for Egypt’s long-term national development plans.
NUCA’s internal document, dated August 12 and marked confidential, underscores the government’s intent to centralize development proceeds and direct them toward broader national priorities, aligning with ongoing efforts to reform land management and infrastructure across Egypt.
Land Sales Frozen, Repricing Underway
The document also revealed a freeze on new land sales in the western portion of the North Coast, particularly west of Ras El Hekma. This pause will remain in effect until a special committee completes a comprehensive repricing process in light of new infrastructure developments and the high-profile Ras El Hekma mega project.
The government has also issued a set of compliance-based penalties, including fines for developers who fail to deliver on their contractual obligations, especially the hotel components of mixed-use projects. In some cases, undeveloped plots may be repossessed if a minimum of 35% of planned construction has not been completed within the designated timeline.
The overarching aim, officials say, is to transition the North Coast from a seasonal residential zone into an internationally competitive tourism destination that operates year-round. To achieve this, emphasis is being placed on hotels and resorts rather than seasonal housing units that often remain unused outside the summer months.
A New Era for Coastal Development
As Egypt positions itself to capitalize on growing interest in Mediterranean tourism and foreign investment, the new regulations mark a decisive moment in how state-owned land is managed and monetized. By enforcing unified standards and redirecting revenue streams toward national development funds, the Egyptian government appears to be asserting tighter control over the real estate boom along its northern shores.
Still, the policy shift may test the resilience and cooperation of investors both local and foreign, who are now being asked to navigate a more complex regulatory environment in exchange for continued access to one of Egypt’s most valuable real estate frontiers.
