Disclaimer: I am an engineer. I have nothing to do with finances and I do not give any financial advice. Thank you.
In this post, there are 5 different ways through which you can invest in Egypt. And there are two reasons as to why I decided to put this post together.
First is that last year, and before starting this blog, when I tried searching for ways to invest in Egypt to be able to start this journey, I couldn’t really find anything helpful that could put me on the right path.
Most of the information I found were created by and for people in other countries like US, UK, Canada, etc. I was very disappointed to be honest. Like why aren’t more people thinking of this and why isn’t it more common?
So, in the back of my mind, I always knew I wanted to go more in depth about how to invest in Egypt, but I was waiting until I have enough information to actually fill a blog post.
The second reason I decided to write this post is because, whenever I talk to someone here about my journey and what I plan to do with creating passive income and all, I’m usually met with a confused face followed by something along the lines of, “wow! you’re different!” (as if I just came up with the concept) or “Investing? Isn’t this for, like, rich people? I don’t really have that much money around.”
And I realized that so many people here don’t have that concept of investing in general. Despite that there are so many opportunities around them to do so, somehow this investment mindset is not that common. At least not in the minds of those around me.
So I thought it would be a great idea if I can put together a post that shows people they can invest in Egypt and they can do it without necessarily being filthy rich or having hundreds of thousands of pounds to start.
- 1. Nakhlaty
- 2. Retirement Accounts
- 3. Real Estate Investment
- 4. Dryve
- 5. Airbnb
Nakhlaty (en: my palm trees) is a project that I have come across very recently. This is an agricultural project that basically revolves around planting date palms and selling/exporting the dates.
The location of this project is in Siwa Oasis, located nearly 50 km east of the Libyan border and 560 km from Cairo.
What you do is you visit their website first and register. They will then send you a short guide for the entire project and all the information you may need to know about the investment.
And within a few hours, you will receive a call from one of their representatives to explain things further and see if you are interested and want to book an appointment to sign the contract.
I have not invested with them yet, however, I find this a very good opportunity with a decent return of money. And also a great way to make money through planting more. So it is definitely on the top my list.
How much money do you need to invest in Nakhlaty?
The price of 1 Feddan (that is 40 palm trees) is 210K EGP with a minimum downpayment of 65K EGP and you have the option to pay the remainder on installments over 3 years, paid quarterly.
And there is another option if you are looking for something less expensive, you can opt for investing in only 1/2 Feddan for 110K with a minimum downpayment of 30K EGP and installing the rest same way, over 3 years.
But note that these prices above are not fixed as they did announce a rise in prices that would take place some time during next month.
The first downpayment would be paid at their branch at the time of signing the contract and the remaining installments can be deposited in their bank account.
Once you are done with the installments, you are not required to make any additional payments for the entirety of your investment period which is 50 years.
And if you decide to invest in the next few days, they actually have an offer going that you can pay the downpayment on a 2-month installment. (Quite the good deal if you ask me!)
How much profit would you get from investing in Nakhlaty?
The profits are quite tempting once you pass the first 3 years.
Starting from the 4th year, you get a profit of 24% and then it keeps increasing every year until it is 70-75% per year.
The reason your profits start from the 4th year is because this is how long it takes for the planted palm trees to grow and bear fruit.
2. Retirement Accounts
This enables you to set aside money on a regular basis, to be invested over the long-term for your retirement. Most plans I found last somewhere between 15-20 years and you are always free to renew. The minimum would be a 10-year investment.
There are two options for such investments: You can either have a safe investment in markets and areas that are almost risk-free or choose to put your money in a more risky investment option.
I personally chose the safest option to put the money in as I’m not looking to risk my money in any way at this moment due to very limited resources; however, once I have established a decent source of passive income, I would very much like to try investing in one of those more risky investments and see what kind of profit they might provide.
How you get started with one of these is either by directly going to one of their main branches or sign with them through their representative in one of the banks they advertise through.
I honestly never tried going directly to a branch, because I only ever hear of them when I am in the bank.
And I’m more inclined to registering with ones that are advertised through banks than just Googling random companies online. I don’t know if this makes any difference integrity-wise or security-wise, but it’s just a personal preference.
How much money do you need to start a retirement account in Egypt?
The one I signed with requires as little as 600 EGP per month. Others may require up to 1k EGP as a minimum installment, and usually it never exceeds the 1k.
It would also depend on the company you choose, but most of them will have some or all of these payment options: monthly, quarterly, semi-annually, or annually.
Just a tip if you consider this one, you better start with an amount a little less than what you can afford, because you will need to pay that amount for the entire period of your contract.
And you can of course increase the starting amount at any point during the contract.
How much profit would you get from a retirement account investment in Egypt?
Mostly you are given an average percentage as the profit you get is not always a fixed amount and that is because it is usually connected with other factors such as the financial situation of the country, however, you can expect a profit anywhere between 10-25% after your first year.
This percentage can always increase or decrease, however, the differences are not catastrophic and you can always ask the representative to show you statistics of how this investment has been doing over the years to know what to expect.
And with the current advancement in the economic status of the country and all the new projects happening, I think it is a quite promising climate for finances and investment.
Depending on which company you will sign with, there will be a lot more than just an investment benefit for you. Main features that all companies would have is a decent healthcare coverage and a life insurance that will cover you/your family in case of critical illness, disability, or death.
3. Real Estate Investment
To invest in real estate in Egypt you have a few options depending on how familiar you are with this field and how much money you are willing to put into it.
A. Flipping houses
You can buy apartments that are in a quite poor condition with a cheap price, renovate it with the least amount of cost you can, then sell it again with a high price to match the current market price.
How much money would you need to flip a house?
That will entirely depend on the area you plan to invest in, but an approximate range you can say anywhere from 200K to 900K.
You may also check this article, while it’s not specifically for Egypt, it does give you an idea on how to choose the houses to flip and how to renovate with the least cost possible.
How much profit would you make flipping houses?
I don’t think there is a definite amount as to how much you can make flipping houses, because there are so many variables when it comes to this kind of business; the location, the condition of the place, the market price, and the economic status, etc..
I have seen people make 50-100K profit and I have seen others make 500K+ profit.
So I would say this would depend on your luck and how good you are in choosing the right place at the right time. But I wouldn’t get into this business if I’m not knowledgable in this field.
B. Home construction companies
If you can’t afford buying a house and renovating it, or simply don’t have the time for all that work, you can turn to a hands-free real estate investment.
Turn to investing in real estate companies that would do all the work for you and you would just get the profits at the end of every year.
You can find these companies through realtors or just googling them and see which one is near your city, read reviews and check what people are saying about it first.
If you would like a recommendation, you can contact me and I’ll give you details of the company I’m investing in.
How much money do you need to invest in a home construction company?
Most real estate companies I checked would accept a minimum of 50K for a fund. And in most cases, you can always increase that later on.
How much profit would you get?
That will sort of vary based on the company and the nature of the estate they work with either residential, commercial, or entertainment, etc.. However, you can expect a range between 30-50% as an average yearly profit.
C. Real estate funds
This real estate investment option was announced earlier this year that it has finally been introduced in Egypt. This is a mutual fund that focuses on investing in assets offered by public real estate companies.
So this would be a way for you to invest in real estate funds with huge estate projects throughout the country without the risk of buying individual stocks through original stock market investments.
However, as of the writing of this post, the company that announced the beginning of this fund, Naeem Holding, has unfortunately cancelled such plans.
It seems that this is something that is in talks right now though according to this article and this update. However, there hasn’t been any news yet on whether it will be open for the public investors or not, if it does though, it would be one of the best real estate investment options you can opt for.
According to Naeem Holding’s earlier announcement, this fund would have cost a minimum of 50K EGP and yielded a profit of 25% yearly. So this is an expected average of what this investment could be about.
I’ll be on the lookout for any news on it and will be updating this post accordingly.
Another type of passive income source you can opt for is renting your car to a car rental company like Dryve.
It is a start-up company that is said to be the first digitalized car rental service in Egypt through which you can rent a car or put your car up for rental on a mobile app.
And they don’t only offer rental cars to individuals but they are also partnered with Uber, providing them with rental cars for drivers who don’t own a car.
What’s good about this company is that they are also partnered with AXA insurance company, which provides you with a full car insurance coverage on your rented car.
All you would need to do is sign up through their App and list your car up for rent.
How much money would you need to invest with Dryve?
Well, if you do have a car that you are willing to give up for part of the day or give up completely, then that would be 0 EGP.
If you don’t have a car, I honestly wouldn’t suggest buying a car just for this purpose. Whatever the amount you’d put even in a used car can be put in a much better and more stable investment.
How much profit would you get renting to Dryve?
Dryve has a calculator on their website where you can enter the details of your car: brand, model and year, and they provide you with the expected revenue you would make renting it.
However, when listing the car you actually set your own prices, you can choose to set the price you see fit.
Read more about Dryve here.
This is a company that connects tourists with available houses offered by locals in the country of their destination to stay in for the period of their visit.
The great thing about this company is that you don’t have to rent an entire house if you don’t have that to spare. You can rent a room only, in the house you already live in.
Renting a room, you would also need to provide them access to the bathroom and the kitchen (too obvious but had to say it, just in case).
There are a set of rules and things you may want to familiarize yourself with first before stepping into this one. I have an entire article published where I went through all the details you need to know to become an Airbnb host today.
How much money do you need to invest with Airbnb?
Well, it will cost you absolutely nothing. The things you would need to provide the guests would be basic amenities like a towel, toilet paper, a cover, a pillow, who doesn’t have that in their house?
So cost is 0 EGP.
How much profit would you make investing with Airbnb?
That would depend on the location of the place you offer. If you live in an area that is close to sightseeing places, a public transportation route, supermarkets and restaurants and such, then you can set a high price and find interested guests.
You can have an idea of the price range you may set for a room here. They mostly range between $10 and $55 per night.
I hope this list can help someone take their first step towards starting their own passive income source today, because, as you’ve just read, it is not as complicated and not as costly as most people think it is.
Till next week, happy days!