Egypt introduces first-come, first-served system for investment land allocation

Egypt’s Ministry of Housing has introduced a new first-come, first-served mechanism for allocating investment land to eligible local and foreign companies, allowing them to secure plots through full payment in US dollars transferred from abroad.

Housing Minister Randa El-Menshawy said the mechanism will take effect with the November offering through the New Urban Communities Authority’s (NUCA) electronic foreign investment portal. The move is part of efforts to simplify land allocation procedures, diversify offering mechanisms and attract more investment to new cities.

Under the new mechanism, companies must register on the portal and transfer funds from abroad through the SWIFT system, with a minimum transfer of $100,000. They must also pay $5,500, comprising $5,000 credited to the company’s electronic wallet and a non-refundable $500 application review fee.

Waleed Abbas, deputy housing minister for new urban communities, said an investment opportunity will be provisionally reserved online once an eligible company submits its application and completes the required transfer from abroad.

The authority will then suspend the receipt of other reservation requests for the same plot under this mechanism.

The company must transfer the full value of the land in US dollars from abroad within one month of receiving notification and before completion of the final allocation procedures.

If the company fails to pay the full amount within the specified period, $100,000 of the amount already transferred will be forfeited and the provisional reservation cancelled, Abbas said.

Ahmed Emara, supervisor of NUCA’s Real Estate and Commercial Affairs Sector, said the existing system will continue to offer investment land on an instalment basis, with companies competing through price-based bids.

Under this system, applicants pay the required reservation deposit through their electronic wallets, with the highest bid determining the preferred applicant.

The new mechanism will allow companies to opt for first-come, first-served allocation of any plot offered on an instalment basis during the offering period, even if other companies have already submitted reservation requests for it.

Priority will be given to the first applicant that meets the requirements and commits to paying the full land value in US dollars transferred from abroad, without participating in price-based competition.

Emara stressed that electronic reservation does not constitute final allocation. The process will only be completed once the company fulfils all financial obligations and meets the applicable requirements.

Ahmed Ismail, acting deputy head of NUCA for Planning and Projects, said the land offering system will operate through two main tracks.

The first will cover investment land offered through instalments and price-based competition, while allowing companies to secure plots through the new mechanism in return for full payment in foreign currency transferred from abroad.

The second will cover a selected group of premium investment plots offered exclusively against full payment of 100% of their value in US dollars transferred from abroad.

The ministry said diversifying allocation mechanisms is intended to improve the utilisation of investment land in new cities, attract investors, accelerate urban development, and support Egypt’s efforts to promote real estate exports and increase NUCA’s foreign-currency revenues.