Invest in Dubai - Shocking Report: Egyptians Are 6th Largest Real Estate Investors in Dubai! 150% Increase – Why? And What Now?

Mohamed Hassan
Jul 3
4 min read

Introduction:

Just three months ago, a major Dubai real estate company released a surprising report: Egyptians are now the 6th largest nationality investing in Dubai property! Not only that, their investments saw a massive 150% increase in January and February 2025 compared to the same period in 2024. This number raises serious questions about the reasons, risks, and most importantly, what the Egyptian government should do to protect its citizens' wealth and encourage investment at home.

Key Findings from the Report & Why Egyptians Are Investing in Dubai:

The report highlighted the top five nationalities investing in Dubai: Indians, British, Italians (a new and notable nationality), Russians, and Pakistanis. Egyptians came in sixth place right after them.

Main reasons pushing Egyptians to invest in Dubai, according to the report and our analysis:

Egyptian Pound's Decline: The continuous drop in the Egyptian Pound's value against the dollar, and fear of more declines, is pushing many to look for a safe place for their money.
Dubai's Investment Safety: Dubai is seen as a global, trusted real estate market that offers a safe and stable investment environment. This is a fact confirmed by reality and many experts.
High Demand from Egyptians: We've directly seen, through our work and consultations, a significant rise in demand from Egyptians for Dubai properties in 2024, which doubled even further at the start of 2025. Even Emirati developers and real estate marketers are increasing their efforts in Egypt to attract investors.

Important Note: A large part of this buying power (about 70%) comes from Egyptians living outside Egypt. Those living inside Egypt make up the remaining 30%, which is still a significant number worth noting.

Risks Egyptian Investors Living in Egypt Must Be Aware Of:

Despite Dubai's appeal, there are real risks for Egyptians buying property from within Egypt, especially for off-plan units:

Exchange Rate Risks: If you're paying installments in Egyptian Pounds, any new drop in the Pound's value means a higher cost for your installment. No one knows what the exchange rate will be during the construction and handover years.
Money Transfers: Transferring money outside Egypt can be difficult. Even if you have dollars, you might face challenges getting them out of the country.
Buying Without Visiting or Knowing the Market: Many people buy property in Dubai without visiting the emirate or understanding its laws and systems. This can expose them to improper practices by some developers.

Unethical Practices in the Dubai Market (Be Cautious!):

Some developers use certain practices, especially with investors not living in Dubai:

Transferring to the Developer's Personal Account: Some developers ask for money transfers to their personal accounts instead of the project's "Escrow Account." An Escrow Account is monitored by the Dubai Land Department and ensures money is spent only on the project. A personal account doesn't offer this protection.
Delaying Initial Contract Issuance (Oqood): Some developers hold onto the 4% paid for registering the initial contract with the Land Department for as long as possible, using the cash for their projects. While not direct fraud, this delays your right, and you should receive your contract within two months at most.
Unrealistic Return Promises: Be wary of promises of 10% annual returns or 30-40% profit from "flipping" (reselling) property quickly. These figures are very rare and usually only happen with extremely expensive and unique properties from major developers, not with regular, smaller properties.
Fake Marketing Companies: No real estate developer in Dubai has a direct branch in Egypt. They work through real estate marketing companies. Always make sure you know exactly who the company you're dealing with is and that your money goes directly to the developer's official Escrow Account in Dubai, not to an intermediary.

Golden Tip: Never deal with a new developer who asks you to transfer money to their personal account or delays issuing your official contract. Be careful and know your rights.

What Should the Egyptian Government Do?

The Dubai report is a wake-up call that should push the Egyptian government to take urgent action:

Comprehensive Real Estate Law Reform: Egypt must review and amend its real estate laws to stabilize the market and restore trust from both Egyptians and foreigners in real estate investment within the country.
Activate Oversight and Enforcement: Existing laws, like the one preventing developers from selling before 30% of construction is complete, must be enforced, and a strong buyer protection agency needs to be in place.
Radical Solutions to Attract Investment: Instead of just talking about "exporting real estate" and exhibitions, practical and fundamental solutions must be offered to encourage Egyptians to keep their wealth and invest it in their homeland.

Dubai: A Safe Haven for Investors... But with Awareness:

The report confirms once again that Dubai is a safe haven for investors from countries facing economic or political issues. The ease of buying property remotely and the various residency options linked to investment all make Dubai a global destination for real estate and other investments.

But Most Importantly: Investors must be aware and understand what they are doing. Don't rush into decisions or get carried away by sweet promises. Dubai does have strict laws and oversight, but this doesn't stop some individuals from making false promises or misleading claims. Always verify your information and make sure you're dealing with a trusted developer. Ensure your money goes through the correct official channels.