Financing Sustainable Urban Development

WUF12 comes at a very critical turning point in the middle east and after the summit of the future in United Nations and the issuance of the pact for the future that pledged key actions towards sustainable, safe and inclusive world. The world in general and the Middle East in particular are at turning points requiring acceleration of sustainable development goals and protecting achievements of development gains with peace and security models. Tailored sustainable urban development models are rich in many middle eastern countries in general and Egypt in particular. Adapting our Egyptian sustainable urban development model to international norms while preserving local inclusive, safe and resilient cities, communities and societies are key to any successful efforts as All start at home. And our Home is here with a new urban development model that rises from the aspiration of the people, with the people and by the people.

In Egypt, only 7% of its territory accommodated with more than 110 million inhabitants in high dense and compact communities. In the meanwhile, every year there is a high population growth rate with about 2.5 million inhabitants increase that require more houses, services and jobs. Accordingly, in 2014, the Egyptian government prepared a national strategy for sustainable development 2052. The main goal of this strategy is to improve the quality of life and to ensure that no one lefts behind. Upgrading informal areas, subside the social housing and development of the existing communities are the target of the Egyptian government that require billions of dollars. The Egyptian government succeed to make the balance on financing the social development projects by creating different national projects for local and international investments. Accordingly, in order to continue the completion of the government commitments to people and to ensure that no one lefts behind collaboration is required.

Objectives

Since one of the key messages of WUF12 is all works together, International cooperations on urban finance is the hope that may take place at different levels. It includes knowledge-sharing, technical assistance, capacity-building and direct or indirect financial assistance in the form of grants, loans and guarantees. Achieving SDs at the local levels through a comprehensive strategy and several action plans in terms of sustainable, green and smart urbanism is a requirement for the next phase of the New Republic of Egypt.

Moreover, Egypt owns a large stock of investment opportunities resulted from a successful vision that have been started since 2014 to date. Exporting the investment projects has become one of the common goals among different stakeholders in the Egyptian real estate industry and that comes in line with the government’s efforts to open the business field for foreigners so they can own more properties.

Mobilizing adequate revenues to meet frequent expenditures and make long-term investments in support of inclusive and sustainable local development are the targets for most of countries especially, the least developed countries. Revenue mobilization and management is therefore very challenging both at the national and local levels.

Guiding questions

• How financing can be provided through the private sector?
• What additional financing can be provided through international organizations?
• What capacities do Egypt governments need to effectively use the different financing and funding options?
• How Egypt enhances the regulatory environment, navigating bureaucratic procedures, legal frameworks, and ensuring transparency for investors?

Session highlights

Part one: Sustainable financing model for Urban development

As the world continues to rapidly urbanize, investment in good urbanization holds the key to sustainability. Global challenges like combating poverty, reversing rising inequality, and mitigating climate change will be increasingly won or lost in cities. Financing sustainable urbanization is therefore an investment in our present and future. Local government capacity must be expanded to harness private sector participation, leverage local assets through value capture, and partner with central governments to invest in urbanization.

Part Two: Boosting real estate export and activate investment funds

The urban development and real estate investment sector in Egypt is one of the important sectors that contributed to the economic growth in Egypt in the past ten years. The sector has received great efforts, and a series of economic reforms were implemented to improve the investment climate and strengthen the private sector. The government’s vision is to export real estate projects and the activation of real estate investment funds. This vision have two effects on the Egyptian Real Estate market; first it will force developers to raise development standards to meet requirements for foreign markets, which will effectively improve quality of developments. Second it will also increase market competitiveness as well as change the type of development based on the larger international demand.