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Jul 28: Updated tax policy soon?

We hope you had a restful long weekend. We’re back to you with updates on moves by HHD to acquire two land plots for new projects, the government’s work on a new tax policy framework, and more. Let’s jump in.

Egypt readies updated tax framework to attract investors

The Clap:

The Finance Ministry is working on updating its tax policy framework under a target to lure in both local foreign finance investors and collect EGP two trillion in tax revenues this fiscal year, a government source told Enterprise.

Expected impact:

The framework — expected to be ready in 1Q 2025 – is projected to generate some EGP 100 billion in tax revenues once it comes into effect.

This would be driven by the incorporation of segments of the informal economy and encouragement of further investments, Enterprise wrote.

Specifically eying foreign investments:

Egypt’s corporate income tax is 22.5%. That is below the global average of 23.37%, and the country is planning “to maintain that competitive edge in efforts to attract foreign investors,” the source said.

HHD allocates EGP 16 billion for new land acquisition agreements

The Clap:

Heliopolis Company for Housing & Development (HHD)HHD is negotiating with the New Urban Communities Authority for the purchase of two land plots, one in Capital Gardens Cairo near the new administrative capital, and the other in New Sphinx west of Cairo. One of the plots spans 800 acres, and the other 600 acres.

Value:

The company is gearing up to finalize one of the acquisition deals, noting the value of the transaction could reach EGP 16 billion, the company’s managing director Sameh Hamouda said in an interview with Asharq Business.

HHD has been making moves:

The company — which raked in EGP 750 million in net profit in Q1 — is teaming up with Madinet Masr on a new residential project spanning 491 feddans in New Heliopolis that is expected to generate EGP 194.67 billion in revenues.

Part of a huge project pipeline:

The company — which expects guaranteed revenues of at least EGP 130 billion over the next 15 years – has a stock of residential units with sales proceeds reaching some EGP 1.3 billion that will be offered in stages during 2024.

What else is clapping?

Egypt’s GDP is expected to grow at a 4.0% growth clip during the current fiscal year, according to a poll of 17 economists by Reuters. This is 0.2% below the government’s forecast, and 0.1% under IMF projections for FY 2024-2025.

Lotus for Development and Agricultural Investment — which last week transitioned from the EGX’s SME market to the main stock exchange— plans to pump EGP 350 million in land reclamation investments until Q1 2025, Al Mal reports.