Egypt Enters a New Era
Unless you have been on a Desert Island or the middle of the Sahara desert with no links to the outside world you will be aware of the revolution that has taken place in Egypt. This uprising has come off the back of what happened in Tunisia where the entrenched leader Ben Ali was forced to stand down when Tunisians took to the streets having had enough of his many years in power. This has continued after Tunisia and Egypt to many Middle Eastern countries, where the citizens are out on the streets to make changes to their lives.
Egypt is now stepping into a new era of freedom, stability, growth and development.
There is obviously a degree of uncertainty among investors, tourists and also the local population however, the revolution was for better pay, lives and future, it was not aimed at foreigners, it wasn’t terrorism and they have achieved one of their main goals, they have removed Mr Hosni Mubarak from power.
This Blog is my opinions on what I think is going to happen in Egypt, based on Internet research, watching the news and most importantly speaking to friends and colleagues out in Egypt. I think the biggest fear is that the Muslim Brotherhood will gain power and create a state ruled by Sharia Law, if we look at why these protests took place it was for better lives, freedom of speech and democratic parliament a complete opposite to what would happen if the Muslim Brotherhood were elected. Add to this the fact the Muslim Brotherhood is officially banned, subject to frequent repression and stated they would not put forward a candidate in any forthcoming elections, I find it highly unlikely they will ever be a governing body in Egypt.
The above takes away the biggest worry, the next is political instability, yes the country is currently politically unstable but it is setting out on the right path to stability, although the Army are currently in charge of the country they need to move forward with elections and civilian rule as quickly as possible. The Army have had a strong influence in Egypt since the coup in 1952 and the current regime has suited them very well, so it is going to be hard for the Generals to give up the power and money but it will happen, it has to happen.
Have a read of this World Politics Review for an independent take on what has just happened in Egypt Ten Assumptions about Egypt worth Discarding
So what does all this mean for the future, as you can imagine there are many different thoughts on what will happen next, depending on who you speak to and yes property agents like myself will say it is all going to be rosy, put your hand in your pocket and buy before all the changes take place and the prices start rising; without any actual research or facts. Not being a “usual” agent and more interested in giving unbiased advice and thoughts I am looking at it from a common sense view point and hours of research, Egypt relies heavily on tourism and outside investment both of these have taken a knock and need getting back on track. I think any incoming government will put both these as priority issues to be sorted out and will be spending a lot of money on changing the face of Egypt making it the place people want to go on holiday and buy holiday homes. This still sounds as though I am telling you all will be rosy but I have given my reasons and shown my research and actually I think it will eventually. It will take time and the changes will hopefully also include removing the corruption from the real estate industry.
Reuters, (not just one of the world’s leading news agencies, but a source of Market Intelligence to some of the world’s largest financial institutions) have listed two great articles in the past few days.
As I have mentioned above these are my thoughts and a couple of online articles, there are many more online articles, some following these some not and there will be many people with differing views and I look forward to some healthy debate if anyone finds this Blog.