(MENAFN- Daily News Egypt) The New Urban Communities Authority's (NUCA) Board of Directors has approved updates and modifications to the mechanisms for processing investor requests for land allocation in new cities across various sectors, during a meeting chaired by the Minister of Housing, Utilities, and Urban Communities, Sherif El-Sherbini. These updates align with the resolutions passed by the Authority's Board in sessions 180 (2023) and 186 (2024).
The Minister explained that investment opportunities in new cities, denominated in USD from outside the country, must be applied exclusively through the Foreign Investment Gateway. Eligible entities include foreign companies, foreign-owned Egyptian companies, and Egyptian companies with at least 60% foreign ownership, provided that the companies have been established for more than one year and operate through an overseas branch.
The portal allows investors to request investment opportunities in sectors other than industrial workshops. Inquiries about these opportunities cannot be submitted through the portal. Applications from foreign investors are accepted between the 1st and 7th of each month, and responses are provided by the 20th of the same month, based on availability, via SMS or email, according to the contact information registered by the investor. No claims will be accepted regarding failure to receive SMS or email notifications.
If an investment opportunity is available, the investor must pay 5% of the land value in USD, transferred from abroad from the company's account or one of its founders, between the 21st of the month and the 7th of the following month. The investor must also submit financial and economic viability documents and proof of experience, as required by the published activity guidelines. Failure to make the payment results in the investment opportunity being processed through alternative mechanisms at the discretion of the Authority. All required payments, including down payments and instalments, must be made in USD from abroad. Proof of dollar reserves in the company's bank accounts, maintained for at least six months, is required. A non-refundable fee of $500 per opportunity is charged for application review, payable through international cards or their local currency equivalent.
The Minister further noted that the financial sector must verify SWIFT payments within 10 working days, and the submitted application documents, including proof of experience and economic standing, will be reviewed by a specialized committee (technical, financial, real estate, and legal) within 10 days after SWIFT verification. The committee will define the necessary experience requirements for companies, to be approved by the Main Planning and Projects Committee and the Main Real Estate Committee.
Once an application is deemed complete, it is presented to the NUCA Board of Directors for final approval. The company will be notified of the Board's decision via SMS or email, and the request will be updated on the portal, serving as official notification. Failure to meet the specified deadlines or payments will result in the cancellation of the allocation and forfeiture of the full reservation deposit. All subsequent payments for land reservations, whether for service, residential, or other purposes, must be in USD from abroad within 30 days from the company's notification of the land allocation approval.
The Minister also emphasized that new companies less than three years old are prohibited from being allocated more than one land plot. Existing companies (established over three years ago) are restricted to a maximum of three plots. Additionally, no partner in a company is allowed to acquire more land in other companies without demonstrating tangible progress in their first project. Proof of progress includes the issuance of a ministerial decree, where required, and at least one slab being poured in cases where no decree is necessary. Companies awarded land through selection sessions or being the sole applicant are subject to these restrictions as part of the initial approval process.
Should a company submit multiple requests within the same month and all the requested plots are available, the company may proceed with one or more plots while adhering to the application rules. If a company is awarded a land plot and it is later discovered that they, or any of their partners, had previously been allocated land without demonstrating sufficient progress, the full reservation deposit will be forfeited and the allocation cancelled.
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