Investors in Egypt focus mainly on the coastal hotspots of the Mediterranean and Red Sea as well as on some purpose built residential enclaves around major cities such as Cairo and Alexandria. The Red Sea is experiencing an exciting new wave of construction that is set to satisfy Egypt's growing tourist economy. At a mere 5 hour flight from the UK, Egypt is a top medium haul destination and, due to a solid transport infrastructure and good amenities, it continues to attract tourists in their droves. They come to enjoy a rich variety of cultural activities as well as fantastic beaches, water sports and desert safaris.

Since 2005, Degree number 548 facilitated the purchase process for non-Egyptians wishing to invest in the tourist sector and an uncomplicated tax system with many tax exemptions are further incentives for foreign investors in Egypt.

EGYPT:

Egypt is one of the main civilisations of the ancient world and has a history that goes back more than 5000 years. Starting with the Pharaohs who were able to create an eternal civilisation, they were succeeded by foreign conquerors, mainly Persian, Greek Roman and Byzantine.

Following the completion of the Suez canal in 1869, Egypt became an important transportation hub and Britain took control of Egypt's government in 1882 when the Suez canal fell heavily into debt .

European influence in the 19th century gave way to a constitutional monarchy in 1922. Following the revolution of 1952, Egypt declared itself a republic in 1954. The first president Mohamed Naguib was soon ousted by Gamal Abdel Nasser whose leadership over the next 18 years left a long lasting imprint on the Egyptian political, economic and social scene. His successor, Anwar El Sadat, was followed by the current president, Mohammed Hosni Mubarak who has been in power since 1981.

The last presidential elections were in September 1999, legislative elections took place in November 2000.

Under the 1971 constitution, amended in 1980, Egypt is a republic with a socialist-democratic system. Executive power rests with the President, who was re-elected for a fourth six-year term in 1999. He can appoint and dismiss, the Prime Minister and Cabinet. The President may dissolve the People's Assembly (the legislative body) prematurely, but a referendum, and elections, must be held within 60 days. The President is supreme commander of the armed forces and head of the police.

The President is elected for a six-year term (and may be re-elected) by the general public having been nominated by at least one-third of the People's Assembly and approved by at least two-thirds. The President makes all ministerial appointments and may choose one or more Vice Presidents. Most of the representatives (448 out of the total 458 members) of the People's Assembly are elected by universal suffrage. The remaining 10 representatives are appointed by the President. A second 258 member chamber, the Shura (consultative) Council, has no legislative powers and acts only in an advisory capacity. The President appoints 36 members, while the rest are elected. The country is divided into 26 governorates, with governors appointed by the President.

The constitution states that there should be no distinction of race or religion. Officially, Egyptian law is based on Sharia (Islamic law), although, in practice it is based on English common law and the French Napoleonic code. Christians and Jews are subject to their own jurisprudence in personal status affairs. Around half of the Egyptian population lives in urban centres such as Cairo and Alexandria and real estate investors are seeking to profit from rental returns and, with the creation of new luxury residential property districts, international interest is on the increase. The capital city of Cairo is the largest city of the Middle East and Africa and lies at a strategic centre of all routes leading to and from Asia, Africa and Europe. Today Cairo offers visitors a great cultural experience combined with good accommodation, restaurants and shopping.

Luxor is without a doubt one of the world's most important historical sites and contains one third of the world's antiquities from the ancient Egyptians dating back seven thousand years. Sites include the famous Tomb of Tutankhamun, the City of the Dead, the nobles' tombs, the Valley of the Kings, Queen Hatshepsut's Temple and Luxor Temple. As you might expect, the city contains many tourist amenities, including hotels, restaurants, clubs and bars.

Alexandria was founded in 331 BC and boasts a rich Graeco-Roman history which for many centuries was at the centre of culture and learning of the entire world. Alexandria was, and still is, of prominent cultural interest for knowledge seekers and the history of its famous library, whose revival is underway, tells the story of the dawn of culture, enlightenment and creation.

Today Alexandra is also the largest port in Egypt, located on the Mediterranean Sea.
The Red Sea resorts in northeast Egypt form an important area in terms of economic development and it is here that many foreign property investors are putting their money while benefiting from the country's increase in tourism traffic. The stunning natural sea and desert scapes attract divers, fishermen and birdwatchers alike who enjoy the white sandy beaches, warm waters of around 22 degrees C and the luxury resort facilities that are increasingly on offer.

GEOGRAPHY
Area: one million sq km (386,000 square miles) four times the size of the UK. Egypt is situated in the north-east corner of the African continent, providing the link between Africa and Asia. To the north of the country lies the Mediterranean Sea, while the east is bordered by Israel, the Gulf of Aqaba and the Red Sea. Sudan borders southern Egypt with Libya bordering the west. Egypt is almost square in shape. 96% of Egypt is desert, which is intersected by the River Nile in a north-south direction and consists of the valley and the delta of the Nile, the Western (Libyan) Desert, the Eastern (Arabian) desert and the Sinai Peninsula, which is separated from the rest of the country by the Suez Canal. The Nile Delta and the Nile Valley are traditionally called Lower and Upper Egypt, North of Cairo, the Nile splits into several tributaries, the main two being the Damietta and the Rosetta branches, which eventually flow into the Mediterranean.
Egypt is divided into four main parts: Nile Valley, Eastern Desert, Western Desert and New Delta at South West of Egypt. There are 26 Governorates.

POPULATION
The total population is approximately 69.2 million (January 2003) increasing at about 2% per annum. Greater Cairo is estimated to have a population of about 17 million and Alexandria about 5 million. The population is expected to double in the next 25 years.

NEWTOWNS

The Government has built 16 new towns in the desert away from the population concentrations in Cairo and Alexandria. This was due to the overall housing shortage of upwards of one million units and new building developments in the Delta, which erased any gains, made by reclaiming the desert for agricultural use.

Investors have taken advantage of the financial incentives offered but there is reluctance on behalf of the workforce to move from established centres. In the medium to long term the cities seem likely to succeed as industry becomes established. The infrastructure within the cities is improving and pressure on existing centres is increasing. Egypt is currently involved in a huge infrastructure project intended to create a new river delta parallel to the Nile Valley over the next 20 years to open up tracks of land for agriculture, industry and settlement. The core of the project is a 310-km long canal taking Nile water from Lake Nasser to the Western Desert.

The Government has decided to provide complete tax exemption for land reclamation projects and 20-year tax exemption for other investment projects established in the New Valley. The Government is also considering exempting the machinery and capital goods from the sales tax.

CLIMATE
Egypt lies in a sub-tropical region with a dry climate, warm summers and mild winters. The majority of the country (including Cairo) rarely gets rain, with the exception of the northern part of the Nile Delta and along the Mediterranean coast, where average annual rainfall amounts to approximately 150 mm and is concentrated in the period from December to March. Alexandria receives the most rain, approximately 190 mm per year.

There are fairly substantial variations between day time and night time temperatures. Temperatures increase as you travel south from Alexandria. In the winter months (November to March), average daytime temperature in Cairo is around 19 degrees C, with the temperature at night falling to about 8 degrees C. In the summer months (May to September) daytime temperatures average about 33 degrees C, but may exceed 50 degrees C (in Aswan) in certain periods, with night time temperatures falling to about 20 degrees C. Temperatures at night during winter occasionally plummet to as low as 8 degrees C, even in the south.

The Khamsin (warm, dry sandstorm) occurs mainly in April and May, and can reach speeds of up to 150 km per hour. The Sinai has unique weather, being typically hot during the day and cold at night, although the mountains can reach freezing level, even during the day.

PASSPORTS / VISAS
A valid passport is required by all except certain Palestinians and some merchant seamen and must be valid for at least three months after the planned stay.
All foreign nationals are required to obtain valid entry visas to enter Egypt (around £15-$30), with certain exceptions for nationals of countries that do not require visas for Egypt. Most Europeans, North Americans and other nationals can obtain tourist visas, valid for up to three months, at the port of entry. Ownership of assets in Egypt has no impact on the ease of obtaining a visa. Tourist visas are issued to foreign nationals visiting Egypt for recreational purposes, or to foreign nationals whose stay in Egypt will not exceed three months. It is possible to renew this visa for similar durations after transferring US$180 for each month of additional time to an Egyptian bank.

HEALTH ADVICE
Depending on which countries have been visited immediately prior to arrival in Egypt, visitors may be required to produce proof of vaccination against certain diseases. For example, yellow fever and cholera is necessary if visitors are travelling from regions where there are outbreaks of these diseases. Vaccination against typhoid, paratyphoid and for those travelling into Upper Egypt, hepatitis B, is advisable before arrival. In all cases, visitors are recommended to contact a travel agency in order to get further information on the current vaccination requirements.

GENERAL HEALTH
Information on health hazards, and precautions to take when travelling abroad, can be found in the leaflet 'Health Advice for travellers' available free from main Post offices.
Visitors who are not used to the region would be wise to avoid green salads and the more exotic dishes. Avoid anything raw, particularly fish and shellfish. Meat is safe as long as it is thoroughly cooked. Avoid cream and milk that hasn't been boiled. Milk in sealed cartons is usually safe to drink. Cuts and abrasions should be treated immediately. Changes in temperature may occur suddenly and so adequate clothing should be worn after sunset, particularly in winter and spring. Protect yourself against the sun. It is difficult to ascertain the speed at which your body is losing fluid in Egypt because of the dry climate. Headaches, dizziness and nausea are signs that you have lost too much water and may be suffering from heat exhaustion. To prevent this, add a little extra salt with your food, drink plenty of fluids and wear a hat and sunglasses. Visitors are advised to take appropriate medicines with them, although most medicines are usually locally available.

The guidance below is from 'Health Advice for Travellers' (July 1998) produced by the Department of Health. For further information please consult this publication which is available free from Post Offices. In connection with obtaining residence and work permits, the Egyptian authorities have introduced a requirement that a certificate must be produced confirming that the foreign applicant is free of HIV.

DRINKING WATER
Public hygiene in the major towns and cities is generally reasonably good. Drinking water in Cairo and Alexandria is usually safe, although the excessive chlorine can be upsetting to the stomach. Short stay visitors are recommended to drink only bottled mineral water and or boiled water. Even in the better hotels and restaurants it is advisable to avoid salads and ice in drinks.

HEALTH INSURANCE
It is essential to take out full medical insurance when visiting Egypt, as there are no reciprocal healthcare agreements between Egypt and the UK.

MEDICAL
There are hospitals throughout Egypt, but most are not up to the standard of the UK. Private hospitals are available and treatment can be undertaken on receipt of a fax from the UK travel insurance company guaranteeing payment. In the case of an emergency the British Embassy can provide a list of doctors and hospitals where English is spoken.

TRAVEL TO EGYPT
The vast majority of British visitors to Egypt arrive by air. There are direct flights from London Heathrow to Egypt's international gateways at Cairo ( Heliopolis), Alexandria, Luxor, there are connecting flights to Hurghada. Two small airports opened in July 1997, at Dakhla and East Oweinat.

British Airways fly twice a week on Thursdays and Saturdays directly from Gatwick to Hurghada International Airport Several charter flights also operate from around the UK directly into Hurghada International airport.

TRAVEL IN EGYPT
Journeys from Hurghada to the provinces may be made by car, train, bus or plane. Services are quite comprehensive and the standard is generally good. Visitors are free to travel from Cairo to all towns and cities.

AIR
EgyptAir operates flights from Hurghada to Cairo, Alexandria, Luxor, Aswan, Abu Simbel and Marsa Matrouth. Generally it is only possible to fly from one provincial airport to another via Cairo. There are a number of other small, private airlines which offer internal flights.

RAIL
The railways provide one of the country's most important internal systems with Cairo at the centre. The largest and the most important towns are connected to the rail network. The main railway line runs from Alexandria to Aswan. The journey between Cairo and Alexandria takes approximately 2 1/2 hours by regular train and almost 2 hours by the turbine engine train or the Spanish one. Cairo to Luxor takes approximately 10 hours. Seats have to be reserved in advance.

ROAD
There is a well developed road network with close to 43,000 km of roads. Bus services (mostly air-conditioning) operate from Cairo to most large towns; seats have to be booked in advance. The use of buses beyond the main road in not recommended. It is easy to hire a car with driver (limousine service from all major hotels) to almost all destinations in Egypt (the fare should always be agreed in advance); however air or rail is recommended for long journeys. The journey time from Cairo to Alexandria by bus or car is about 2 1/2 hours, to Suez and Ismailia is about 1 1/2 hours and Port Said (free trade zone) about 2 1/2 hours. Cars drive on the right in Egypt; and there is a speed-limit of 100 km per hour on all main roads.
Driving in Egypt is not for the faint hearted, they drive on the right and are particularly fond of their horns.

FERRIES
International Ferries operate from Greece and Cyprus to Alexandria. Ferries also operate from Sharm El Sheik to Hurghada daily.

URBAN TRANSPORT
Cairo and Alexandria have extensive bus, tram and minibus services. However, foreigners (especially those who do not speak Arabic) are not recommended to use these forms of transport as they are generally overcrowded, and these drivers speak Arabic only. The metro in Cairo is clean and efficient. Taxis (rarely air conditioned and usually uncomfortable) are available in all the main towns. The fares are reasonable, but as the taxi meters are often not used, visitors are advised to agree the fare before commencing the journey. Taxis and the limousine service provided by the hotels can be hired on an hourly or daily basis. As many taxi drivers cannot speak English, it is advisable to have the address written in Arabic, if necessary by the hotel receptionist/porter. It is a good idea to carry a map to assist the driver.

THE RIVER NILE
The romance of a Nile cruise has captured tourists' imaginations for many years. The Nile Cruise used to be the only way tourists could get to the tombs and temples of Luxor and today you can get excellent package deals, usually ranging from 4-7 days. Most boats depart from Luxor, sailing down to Aswan, with stops at Esna, Edfu and Kom Ombo.

TIPPING
Tipping is widespread in Egypt. Everyone from porters to taxi drivers to bag packers at the supermarket expect baksheesh. It is advisable to carry some notes of small denominations with you for this (suggested level of tipping LE1-LE5 max)

RESTAURANTS
All major hotels have several restaurants offering both international and local dishes. The standard and service vary.
Hurghada has many restaurants offering international, local and oriental dishes. Average price of a meal is about £5 - £15 per person (suggested level of tipping: 10%).All major hotels except credit cards.

ELECTRICITY SUPPLY
220-240 volts AC, 50 cycles, with mainly two pin round plug fittings and screw and bayonet-type light sockets used. The industrial supply is 220-380 volts, single or three-phase. Many industrial and commercial undertakings have their own emergency generators as an insurance against occasional power cuts. Some leading hotels may also supply 110 volts outlets for razors and small appliances.

SOCIAL ETTIQUETE
Most Egyptians, irrespective of education and social status, are spontaneously extrovert, friendly, obliging and, as a rule, informal in their dealings with each other and with foreigners, subject to the existing structure of authority and class. Some knowledge of Egypt's history, culture and social structure, with perhaps a little knowledge of Arabic as well, will usually make a good impression. It is necessary to be patient in business relations, as time and punctuality can be rather vague concepts in Egypt. Most Egyptians have three names: forename, the father's name and the family name as in, for example, Mohamed Amin Mostafa. It is best to use the final name and call a gentlemen Mr (Dr) Mostafa. His wife would normally be called Mrs Mostafa. Normal western forms of address are accepted and used. Handshakes are a customary greeting and although most people speak English or French, the Arabic tradition of civility remains important. A smattering of Arabic can be useful in constructing relationships.
The most frequently occurring greeting is ahlan wa sahlan (peace be upon you); the standard reply is ahlan beek (and upon you be peace).
Useful phrases include:Shukran - thank youafwan or ahlan - pardon/excuse meassif - sorry

WOMEN TRAVELLERS

Egyptians are in general very conservative about matters relating to sex and women, particularly with regard to Egyptian women. To avoid offence it is advisable to show as little flesh as possible. Also avoid eye contact with any males, unless they are associates or you know him well. It may be useful to wear a wedding ring, which may help to discourage unwanted attention. This said the locals in Hurghada are used to western ways and are more tolerant.

ESSENTIAL INFORMATION

Capital: Cairo Time difference: +2 GMTFlying time: 5 hoursMajor airports: Abu Simbel, Alexandria, Aswan, Borg el-Arab, Cairo International, Hurghada, Luxor, Sharm el-SheikhLanguage: Arabic (English is widely spoken)Population: 77 Million Dialling Code: 00 20Currency: Egyptian pound (EGP) - approx 11 EGP to the Sterling PoundVisa required: YesWork visa required: Yes, valid for 12 months and renewableElectricity: 220V/50Hz

HURGHADA
The city was founded in the early 20th century, and since the 1980s has been continually enlarged by American, European and Arab investors to become the leading bathing resort on the Red Sea. Holiday villages and first class hotels provide excellent aquatic sport facilities for sail boarders, yachtsmen and scuba divers. Hurghada stretches for about 40 km along the seashore, and it doesn't reach far into the surrounding desert. The resort is a destination for package holiday tourists from Europe, notably Russians, Czechs and Germans. Until a few years ago it remained a small fishing village. Today Hurghada counts 40,000 inhabitants and is divided into three parts: Downtown (El Dahar) is the old part; Sekalla is the modern part, and El Korra Road is the most modern part. Sakkala is the relatively modest hotel quarter. Dahar is where the town's largest bazaar, the post office and the long-distance bus station are situated. Many restaurants, bars and shops, small pubs and internet cafes are available all over Hurghada.
The city is served by the Hurghada International Airport with scheduled passenger traffic to and from Cairo and direct connections with several cities in Europe.
Hurghada is known as a party town, and with its many clubs, life could be said to begin there at night. Nearly every hotel has its own disco. The most famous ones at the moment are "Calypso" and "Papas Beach". Renowned for belly dancing, Arabic and Nubian folklore, is "Alf Leila Wa Leila" ("One thousand and one nights"). It is a big open-air area, which offers a bit of everything.
Hurghada has become an international center for aquatic sports like windsurfing, sailing, deep-sea fishing, swimming, and above all snorkeling and diving. The unique underwater gardens offshore are some of the finest in the world, justifiably famous amongst divers. The warm waters here are ideal for many varieties of rare fish and coral reefs, which may also be observed through glass bottom boats. The city provides a gateway to prime diving sites throughout the Red Sea. Its central location provides favorable access to very famous dive sites. In addition, Hurghada is known for providing access to many uninhabited offshore reefs and islands

NOTABLE PLACES AROUND HURGHADA
Sharm El Naga - a village, around 40 km south of Hurghada. Its beach contains possibly the most beautiful reef cliff in the region. El Gouna - an artificially-created and privately owned luxury hotel town, about 25 km north of Hurghada. Its beauty comes not only from its quietness and cleanliness, but also from the fact that the town consists of several islands separated by channels and connected by bridges. Besides 14 hotels and 2 marinas, there are also three hundred private villas and apartments, and some five hundred more are under construction. It is sometimes called Egypt's Venice.

Al-Mahmya - a tourist beachfront camp on the protected Giftun island, 45 minutes by boat from Hurghada. Soma Bay - a tourist resort situated 45 km south of Hurghada, with various hotels including Sheraton, Robinson Club and Hyatt Regency.
Sahl Hasheesh - a tourist resort situated 20 km from Hurghada airport.

SAHL HASHEESH
In one of the most beautiful bays of the Red Sea, just 20 km from Hurghada airport, the Premium Resort Sahl Hasheesh is currently being created.

In the 12 km long bay with its wonderful sandy beaches emerges with the Premium Resort Sahl Hasheesh a new “hot spot” of absolute superlative scale and quality..

The infrastructure in the Resort has already been entirely completed, the opening of the first few hotels and luxury apartments is scheduled for 2007

Fairy-tale hotels, luxurious villas and apartments, a new "Old Town" with the flair of 1001 nights, unforgettable diving areas in the worlds first purpose built underwater city, golf couses, a cinema complex as well as a unique marina designed by no less than Norman Foster. Furthermore the Prince of Jordan is building Egypt's first 7 star hotel - the Premium Resort Sahl Hasheesh - soon to be one of the most exclusive addresses at the sea.

Imbedded in the spectacular surroundings of Sahl Hasheesh, exclusive apartments and villas are emerging in immediate vicinity of the beach offering investors a first rate price/performance ratio - including a free sea, desert and golf view.

The resort is only a short flight time from all European capitals, offers a warm climate throughout the year and the ongoing effective development of the tourist potential provide for a constant, dynamic progression of the real estate prices in Egypt, especially on the Red Sea. Growth rates of more than 50% are not unusual.

Sahl Hasheesh is an exclusive real estate investment of world class proportions with significant potential.

INVESTING IN EGYPT

Main Reasons Why Egypt is a Desirable Investment Location:

. Low property prices starting at around only £17k
. Steady year-on-year capital appreciation of between 20-30%
. Beautiful, well established tourist hotspots suitable for varied tourist interests, from excellent diving and snorkeling to cultural and historical locations
.Stunning natural, unspoilt landscapes
.Steady annual growth in tourist figures
.Less property taxes than paid in the UK
.No capital gains tax
.British residents avoid inheritance tax on any Egyptian properties
.Foreign investors are regarded by the government as a big investment opportunity and laws have recently streamlined procedures, making the purchase procedure easy.
.Strong economic growth and increased investment in infrastructure are boosting the property investment market as a whole.
.Warm desert climate with temperatures ranging from 14 degrees C in winter to 30 degrees C in summer creating a year-round tourist season
.Politically stable country
.Increased inward investment, creating a rich investment climate.
.Well renowned developers are creating luxury resorts to cater for Egypt’s new influx of international tourists
.Easy air access from many European destinations makes Egypt an ever popular medium haul holiday location
.Cairo International airport is being modernized and a new terminal is to be built by early 2007
.Low cost of living and maintenance costs
.English is widely spoken, after Arabic
.Damac, the largest Independent developer in Dubai signed an agreement with the Egyptian government in December to purchase and develop a huge parcel of land in Hurghada
Buying facts:Typical property price: from £17k for a beachside apartment, £80k-£200k for a two-bedroom coastal villa Year-on-year capital appreciation: 20-30 per centProjected capital appreciation for 2007: Up to 25 per cent per annumAverage rental return: 12% + Legal fees: Up to 1.5 per centProperty Registration Duty: 3 per cent plus survey feesCapital Gains Tax: None

Egyptian Economy Overview

The Egyptian economy has long been characterised by a dominant public sector. Price and administrative controls maintained over the years on public and private sector activities have impeded the working of the market mechanism and created structural weakness in the economy.
President Sadat's open door policy partially liberalised the economy and produced a short robust period of growth. Egypt's economy grew strongly in the late 1970s and the early 1980s owing largely to buoyant foreign exchange receipts from oil exports, workers' remittances, and tolls from the Suez Canal and tourism.
However, slow global growth and the fall in world oil prices in the mid-1980s caused massive fiscal and current account deficits and the inherent structural rigidities which had hitherto been masked began to exert strains on the economy. Debt rose to over 100% of GDP, debt service to 50% of export earnings and foreign reserves covered only 2 months of imports. Fiscal deficits increased to 18% of GDP and inflation accelerated to more than 20%. In May 1991, the IMF and Egypt agreed an Economic Reform and Structural Adjustment Programme (ERSAP), underpinned by balance of payments support and Paris Club forgiveness of 50% of the net present value of Egypt's debt to be written off in three trenches, subject to satisfactory implementation of the ERSAP. The first stage of the reform programme focused on stabilising the economy, involving fiscal and monetary tightening, exchange rate liberalisation and price deregulation. The Egyptian Pound was pegged to the US$. Phase two saw a further deregulation of prices, investment reform, trade liberalisation, as well as private sector and financial sector reform. In October 1996, the IMF approved a new 24-month standby credit arrangement for Egypt focusing on further liberalisation of trade, and financial and legal reform. The agreement triggered the release of the final $4.2 billion tranche of Paris Club debt relief. Following the completion of the standby arrangement, Egypt did not sign a new agreement with the Fund and the role of the IMF was limited to providing technical expertise and advice.
Egypt's economy has come a long way since the early 1990s as significant progress was made in macroeconomic stabilisation and structural reforms. However, economic performance weakened in the late 1990's as a result of internal and external factors. On the domestic side, credit growth remained rapid and structural reforms slowed. At the same time, tourism experienced a temporary downturn, oil prices dropped and global financing tightened following the Asian Crisis. The Egyptian Pound continued to appreciate as the exchange rate was kept fixed at LE3.4/US$1 for years and the market suffered a squeeze in domestic liquidity and a severe shortage in foreign currency. On 29 January 2001, the government introduced a new foreign exchange regime based on a 'managed peg'. A central exchange rate was fixed at LE3.85/US$1. Banks and exchange bureaux were allowed to quote rates 1% above or below this rate. The pound was devaluated further during the year and the trading band was widened. By January 2002, the central rate had become LE4.51/$1 and the band was + 3%; meaning that the dollar could range between LE4.375-4.645. But the currency market was suffering a serve dollar shortage and a flourishing parallel market. On 28 January 2003, Egypt announced that it would abandon the managed peg of the Egyptian pound and move to a floating currency regime. The Prime Minister said that as of the following day, there would be free market and banks would be able to set prices independently. However, the Central Bank of Egypt reserved the right to intervene whenever it deemed necessary. The first day of liberalised trading, 29 January 2003, saw the Egyptian pound at roughly the previous parallel market rate. The pound was 17% weaker trading at LE 5.36 - 5.43. It depreciated further to US$ 1= LE 5.70 by mid March.
The Egyptian economy, which was already suffering from a slowdown in activity, was later hit by the 11 September events. However, the economy weathered the aftermath of the 11 September events much better than initially forecasted. The current account, which was projected to be US$ 2 billion in deficit, showed a negligible US$ 8.5 million deficit, though oil exports, tourism and investment were hurt. The overall balance of payment turned even stronger than 2001, recording a deficit US$ 447 million compared with US$ 871 million in 2000/01. According to the World Bank, the real GDP growth was 2% in 2001/ 02 (July-June). The private sector contributed 76% of the GDP. The overall government budget deficit was 5.8% of GDP. The balance of payment was in a much healthier state showing a deficit of $447 million (0.5 % of GDP). The current account deficit shrank to 0.005% of GDP and the trade deficit declined to US$8,000 million (exports down 6% to $6,643 million and imports down 11% to $14, 464 million). Foreign debt stood at $28, 667 million (32.6% of GDP) and debt service was 9.3% of current receipts. Foreign reserves were $14,147 million in June 2002 (11.6 months of imports). Inflation rate averaged 2.4%.

OUR PROJECT

SUNSET PEARL

Sunset Pearl is one of the first released residential projects in the magnificent Sahl Hasheesh resort. The timing of the release ensures that purchasers will be in at the beginning and benefit from the extraordinary projected capital growth projected during construction.

Set on the highest plot in the development it offers panoramic views of the sea, the town, the desert and the spectacular mountains from all properties. Phase one will consist of 90 studio apartments starting at just £39,999.

All apartments will be linked to the neighbouring hotel which is opening in March / April this year. The developer / operator of this hotel is Pyramisa, a publicly quoted company, the same company building the apartments. The quality of the hotel plays testimony to the finishes specified on Sunset Pearl. A further benefit will be that owners or guests can pay around £20 per day to use all the hotels facilities and drink and eat as much as they wish.

Each studio is 49m2 including terrace and the ground floor apartments benefit from a 50m2 private garden. Additionally each property will have use of a communal roof terrace. The finish is to high European standards and furniture packs will soon be available.

Further phases will be released in due course of 1, 2 & 3 bedroom apartments.

For more inforamtion, email us at sales@sunsetpearl.com or visit www.sunsetpearl.com