Egypt News
30th. January 2008
Egypt offline
Egypt is currently offline.A ship diverted from the Mediterranean port of Alexandria in Egypt is thought to have severed submarine cables with it's anchor.The result has been a complete loss of internet connection affecting the whole country.Described as a "national disaster" by Joseph Metry of Orascom Telecom Holding SAE.
The incident is thought to have taken place 8.3 km from Alexandria beach after six ships were diverted due to rough seas.
While many companies are attempting to re-route internet traffic through unaffected cable systems it is expected to be at least a week before full service is available.
21st December 2007
Who will play on all these golf courses?
By Tom Olson
First Published: December 14, 2007
Last month we talked about the golf courses as part of the development strategies of housing developments. Today, we will answer the question I get asked most often: Who is going to play on all the new golf courses in Egypt?
The easy answer is: golfers who live in Egypt and tourists.
First, let’s look at golfers in Egypt. As I said before, 15 years ago there were only a few hundred golfers playing in Gezirah, Mena House and Alexandria Sporting, mostly Egyptians from wealthy families. There may have been a couple of hundred foreign residents playing as well.
Today, the number of Egyptian golfers has at least doubled, perhaps even tripled. The number of foreign players has probably increased by a similar number. People from the Far East can learn golf in Egypt, whereas the sport is too expensive to play in China, Japan or Southeast Asia. But a couple thousand golfers are not going to fill 20 golf courses, which is the number we will have within a year to 18 months.
Regardless of whether golf is a growing sport, the number of Egyptian golfers is not going to grow overnight. That will take time and effort. I will take up this subject later on.
To fill up the courses quickly, Egypt must attract golf tourists, especially during the seven winter months in Europe: October to the end of April. The number of tourists we are talking about is surprisingly few. In the winter months, an 18-hole golf course in Egypt will comfortably accommodate a maximum of 120 golfers teeing off in groups of four —we call them foursomes — between 7 am and 12 pm, playing their games in four and a half hours.
The typical golf tourist plays five rounds in a week, ideally at more than one course. If all 20 golf courses were full every weekday (we have to leave time on the weekends for local golfers to play), that would be 2,400 golfers per week or 67,200 golfers during these seven months. That’s less than 1 percent of the golfers in Europe. It is also less than 1 percent of the tourists who come to Egypt every year.
Can Egypt attract 1 percent of the golfers in Europe? Only with a concerted effort from all the golf courses working together. Still, this is not really a daunting task. Egypt has all a golfer could want: good weather every day; comparatively low prices for hotels, food, and golf course fees; one of the nearest destinations to Europe, and — very importantly — within one time zone of the tourist market.
It is beginning to happen. The courses on the Red Sea and Sinai are busy during the winter and are making money for their resorts. Golfers typically spend twice as much as the average tourist, so it is worth a little extra marketing effort to bring them.
There are some tourist agencies in Egypt specializing in golf, and the courses attract golfers directly through relationships with golf clubs in Europe, but a lot more has to be done. Mostly, it requires cooperation among the courses, and some financial support from the Ministry of Tourism for attending tourism exhibitions in Europe, and bringing golf tourist agents to Egypt on familiarization visits (or Familiarisation Trips).
Will the cooperation happen? I am optimistic. Already I see most clubs cooperating. It should be a no-brainer. Adding just two foursomes a day to a golf course during the high season brings nearly $100,000 of income that goes directly to the bottom line of the course. An extra foursome on a golf course is like selling four more rooms in a hotel that is not full. There is almost no cost to having the additional guests; in fact, the guests — or the golfer in this case — will also spend money eating, drinking and buying things in the shops.
So, if you are an investor, golf is good. It is certainly not quick money — that happens when you gamble in the real estate or stock markets. But, if you are looking for a steady and rising income, it is a good bet. Besides, if you own a course in Egypt, you can play golf everyday for free!
As always, remember to keep your head down and swing away.
Naeem to Launch Mortgage Company Spurred on by Increasing Egypt Property Investment
Egyptian investment bank Naeem Holding has released investment news that they are setting up a $200 million mortgage finance company to fund the growing demand for Egypt property investmentEgyptian law has now been changed to accommodate financing and the demand for mortgages has been driven further by the countries economic growth and rising property prices according to investment news. Amlak Finance, one of the first companies to offer mortgage services, has already started to see profits moving in the right direction, and early predictions show that the company will see good profits next year. The legal changes will include reduced fees for registered properties and clarity to the foreclosure laws all of which are increasing the competition within the mortgage industry in the Arab country. Ahmed Naim Badr from Naeem commented that the investment bank plans to invest a further $300 million into property in and around Egypt over the coming year. ‘In three to four months we will apply for a license and begin operations. There is a big rally in the real estate market and this can't be managed without mortgage companies.’ ‘By the end of this year the mortgage law should be fully in place. I see the amount increasing again but it is subject to getting the mortgage law properly implemented. Most of the new real estate developments in Cairo, such as the residential compounds built by many UAE firms, cater only to Egypt's wealthy. Once the law is passed developments will be able to serve more people, which will help to develop the middle class. Changes to Egyptian law allowing funds to buy property, in addition to listed companies, would also boost investment in the sector. There is a lot of liquidity among small investors who are currently seeking real estate investment opportunities.’ Badr said. The introduction of the mortgage law is set to double the Egypt property investment market and a surge in liquidity in the region, economic growth, and high inflation are all encouraging people to invest in real estate. Land prices around the capital of Cairo have already doubled over the past year.
Property developers Damac and Emmar are buying big, and leading the way in Egypt property investment by transforming the country's growth in quality real estate developments.
Egypt property investment market has been performing extremely well and is being urged on by news of the high investment figures pouring in from property developers. Looking forward, the country is set to become one of the best emerging markets for property investors, who will benefit from substantial capital appreciation and rental returns. Damac, one of the Middle East's largest luxury property developers, entered the Egyptian market in 2006 with a $16 billion plan to re-develop 320 million square meters of land, near Hurghada. The resort style development has encouraged huge investment into Egypt property investment. Other large developers are following suit and Dubai based Emarr, who already own 6 major development sites, have ambitious plans to control nearly half of the development.'There is no doubt that Egypt is a key country that is set to play a leading role in DAMAC's investment strategies in the region. Backed by solid economic growth and a wealth of human capital, the potential prospects are immense. DAMAC's commitment to Egypt will serve to attract further investment, generate massive employment, and contribute to the development of the real estate sector which is rapidly entering a new era.' said Mr Hussain Sajwani, Chairman of DAMAC Holdings. Local property agent, Mustapha Mezouri, believes that funds from the Middle East and UK tourism, is strengthening the price of property in Egypt. 'Egypt will undoubtedly be an exciting area for investors and second home buyers due to the billions of foreign direct investment being invested from the Middle East. Prices will most certainly increase.' Mustapha also believes that the newer Hurghada market is likely to offer the most capital growth. 'Most people who think of Egypt automatically think of Sharm el-Sheikh, but we would suggest Hurghada is an affordable alternative. Prices in Sharm have increased substantially and Hurghada is also a highly established tourist resort with an international airport close by accepting incoming charter flights. Prices for quality property here are lower than Sharm. We believe property prices in this emerging market will rise 100% over the next five years, with great opportunities to sell on to end users' The government's continuous reforms to infrastructure should bring about a major shift in Egypt property investment. Another benefit which boosts rental potential is an increase in direct, short flight times from the UK, no capital gains tax, or inheritance tax, a relatively low cost of living and property in Egypt requires minimal maintenance costs.
New flights will make travel to Egypt a lot easier
The announcement of a new schedule of daily flights from London to Cairo are expected to boost tourism and investment, read Guardian article
