INTERVIEW: Foreign currency crunch has led to pricing uncertainty among real estate developers – Orascom Development

INTERVIEW: Foreign currency crunch has led to pricing uncertainty among real estate developers – Orascom Development

Despite massive sales last year, Egypt’s real estate developers greet 2024 with concern, due to the cost of business amid the country’s turbulent economic situation and the grinding foreign currency crunch, according to Tamer Dewidar, CEO of Orascom Development Egypt ’s O West, Makadi Heights and Byoum.

“One of the concerns in 2024 remains uncertainty,” Dewidar told Zawya. “It is challenging to anticipate all the changes in Egypt, whether two weeks or a month from now. The uncertainty of the currency and its impact on construction material prices makes it difficult for us to anticipate the cost of construction.”

For months, investors and businessmen have been holding their breath in anticipation of a devaluation of the Egyptian pound, a move deemed essential to revive a $3-billion loan agreement with the IMF to attract foreign currency flows and undermine a flourishing black market. The exchange rate on the parallel market has surpassed 61/$, while regulators insist on maintaining an official rate of 30.9. The recent meetings between IMF representatives, Egyptian regulators and US treasury officials in Washington have revived hopes that a devaluation may be around the corner.

On Thursday, Moody’s downgraded Egypt’s credit outlook rating from “stable” to “negative”citing weak debt affordability and