Egypt opens up land sales to foreigners for US dollars

The Egyptian pound dropped again against the dollar on the black market on 21 July 2016, extending its recent decline despite central bank efforts to close the gap between demand and supply in the dollar-starved economy. Egypt, which relies heavily on imports, is facing a shortage in foreign currency inflows after a 2011 uprising drove tourists and foreign investors away, causing the country's reserves to tumble to $16.56 billion from $36 billion. A black market for dollars has sucked up liquidity from the banking system while the central bank kept the pound artificially strong and rationed dollars through weekly auctions, putting a strain on foreign reserves. (Photo by Fayed El-Geziry /NurPhoto via Getty Images)

In an effort to boost foreign currency reserves, Egypt will sell designated plots of land to foreign businesses for US dollars.

The approval pertains to 62 undisclosed applications for land from foreign investors, the Egyptian cabinet announced on Wednesday.

The decision spans across the country, encompassing cities like New Damietta, October Gardens, New Obour, New Assiut, New Sohag, New Cairo, New October, Badr, Al Shorouk, Tenth of Ramadan, and New Borg al-Arab.

These lands are zoned for diverse uses to support development, including residential areas, hotels, business centers, and various industries.

The Egyptian government gave the green light to this land sale plan at their recent cabinet meeting, which was also approved by The New Urban Communities Authority.