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Wednesday, 19 June 2019

Egypt to begin tendering land under new mechanism

REGULATION WATCH- Cabinet outlines new land tender mechanism for mixed-use developments in new communities: The Madbouly Cabinet outlined in a statement on Monday the New Urban Communities Authority’s (NUCA) new regulatory framework to handle requests for the allocation of land for mixed-use projects. Under the mechanism, two NUCA-commissioned departments will begin selecting land available for new city investors. This came as Prime Minister Moustafa Madbouly instructed the government last month to offer “as many industrial land plots as possible.” NUCA’s board of directors approved the framework last this past March, and Housing Minister Assem El Gazar gave a rundown of its specifics then.

What are the new regs? The framework will require NUCA to allocate land based on both investor preference and each city or town’s development priorities. It will mandate a specialized committee to determine and continuously update land prices. Land allocation requests will also have to be accompanied by feasibility and solvency studies, and investors will be required to make a 10% “commitment deposit” within a 30-day notice window (or 60 days if paying in USD). Investors who back out will lose half of their deposits. The new rules will prioritize USD payments.

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