EL GOUNA, EGYPT

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(~ 0.088 GBP)

The government faces regular upheavals from Islamic and political extremists. Since the early 1990’s, there has been much conflict between the government and militant groups. On some occasions, foreigners have been targeted and the worst case was in November 1997 when 58 tourists, six of them British, were murdered. The Egyptian authorities have quelled much of the violence with hundreds of militants killed or subdued; yet the complete eradication of such threat is not yet suggestible.

Extremists have unsuccessfully targeted the president Hosni Mubarak on a few occasions, and he narrowly escaped an assassination attempt whilst in Addis Ababa in June 1995. A major significance for the government to address the need for economic reform, is to underlie some of the root causes of extremism

Handshaking will suffice as a greeting. Traditional conservative clothing is the general attire for men and women and this should be especially observed when in a religious or holy setting. Western style of clothing is accepted in modern nightclubs, restaurants, hotels and bars in the capital, Cairo. Smoking is very common.

Taxes are withheld from salaries at a rate of 20% on salary income up to LE 50,000 per year, and at a rate of 32% on the excess.

Individual:

The economic stabilisation and reform brought is on track with good momentum. Ongoing reduction of debts in addition to good budgets have contributed to this progress. Egypt is heavily import-dependent. Exports include petrochemicals, oil, and cotton. The tourism industry has experienced some deceleration due to the current events in the Middle East and possible security concerns. However, it is still providing a good source of revenue in addition to other service jobs and emigrant workers remittances

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Pension Investor

Holiday Investor

Retirement Investor

Downshifter Investor

Business Investor

Water Temp.

Alternatively flights are also available to Hurghada airport which is half an hour away from El Gouna

Internal bus network in addition to buses to and from Cairo depart daily

Peak

Off Peak

Demand for letting

El Gouna Travel Agency –

(+20 65) 580 085 / 86

Email: protours@orascom.net

Egypt Air, Air France, British Airways, KLM, Lufthansa. Charter services fly direct from London Gatwick to Egypt. British Mediterranean (a franchise partner of British Airways) operates daily services from London to Alexandria. Egypt Air also operates internal flights.

There is a higher than average British population compared to the rest of the country so this should make you feel a bit more comfortable.  Yields are very high are are sustainable throughout the year.  There is little or no tax payable on disposal of investment properties so you can exit with a small charge.

This area has a lot to catch up to hence prices are cheap.  Do not expect to get a pretty looking property unless you want  you want to pay double the entry price.  Again the war has made this area a moderate risk as opposed to a low risk but in the long term it’s a safe bet.

The Interest rate is high at 10% but the yields compensate for this.  Interest rates are set to come down as inflation rates are sensible thus increasing the profit margin on an investment property.

elgouna@redsea-realestate.com

info@red-sea-guide.com