Egypt's Prime Minister Mostafa Madbouly has announced the launch of a major new real estate development project named South Med on the country's Mediterranean coast, in partnership between the government and the private sector.
The project, developed by Egyptian real estate giant Talaat Moustafa Group Holding, is expected to attract investments worth 1 trillion Egyptian pounds ($20.7 billion) and generate sales of 1.6 trillion pounds ($33 billion), the company's CEO Hisham Talaat said during a joint press conference with Mr Madbouly.
In just the first few hours after reservations opened, the project achieved actual sales of 60 billion pounds, “an unprecedented figure in Egypt's real estate and tourism sectors”, according to Mr Talaat.
He emphasised that the project comes as a model of partnership between the state and the private sector in real estate, in line with the government's policy of encouraging the private sector to play a larger role in developing the national economy.
He said that “local investment is capable of generating projects that match global ones to create real added value for Egypt and its economy”.
The project is also expected to create 1.6 million direct job opportunities through construction and other related industries.
During his speech, Mr Madbouly emphasised the government's commitment to developing the north coast as a focal point to maximise the tourism sector. The goal is to double the current number of tourists visiting Egypt by 2030, he said.
The prime minister highlighted that the north coast's moderate year-round climate and topography make it one of the most important areas capable of absorbing a large portion of Egypt's future population growth.
To encourage Egyptian youth to reside in the north coast region, the government is working to provide more job opportunities through implementing a large, integrated set of projects.
Mr Madbouly stressed that this project, along with others such as the New Alamein City and the Ras Al Hikma project in partnership with the UAE, will attract millions of foreign tourists from around the world, especially from the higher-spending segments from Europe and Arab countries.
He highlighted the job opportunities these projects will create for Egyptian youth, both directly and indirectly, encouraging them to settle permanently in the region.
Tributes from the UAE's personal finance community
• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style
“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.
Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term.
From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”
• Sam Instone, director of financial advisory firm AES International
"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed. Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."
• Demos Kyprianou, a board member of SimplyFI.org
"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."
• Steve Cronin, founder of DeadSimpleSaving.com
"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.
His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.
Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."
• Zach Holz, who blogs about financial independence at The Happiest Teacher
"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen. He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”
• Tuan Phan, a board member of SimplyFI.org
"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."
