El-Sisi calls for low-income Egyptians to benefit from TMG mega-projects
The partnership between Talaat Moustafa Group (TMG) and the government to develop four projects with investments of up to 11 trillion Egyptian pounds ($202 billion) has sparked debate over expected returns for both sides and how much of the benefits from major real estate developments should go to low-income households.
President Abdel Fattah El-Sisi called on the group to provide 200,000 housing units as part of what he described as community service, a move one expert viewed as a new approach requiring luxury development projects to allocate a share for lower-income groups.
During the second day of the Egypt 2026 Forum, El-Sisi addressed Hisham Talaat Moustafa, the TMG chairman, saying projects of this scale should include a contribution to society. “I just want to tell the government and Mr. Hisham that all projects like these have something called community service. You can’t carry out projects worth this much and then provide no community service,” he said.
El-Sisi said the announced investment volume, estimated at around 11 trillion pounds ($202 billion), would allow the group to allocate some housing units for rent, arguing that this would not be a major burden. “I haven’t been too hard on you. I’m serious,” he said.
The businessman replied, “Your wish is my command, sir,” before El-Sisi added, “If I take 1% from you, I’ll get 100 billion, so you should build the units.”
El-Sisi’s demand raises questions about whether major real estate projects could be required to contribute toward affordable housing for lower-income groups, as the market faces criticism over soaring property prices and the difficulty many Egyptians have affording homes.
Yahia Shawkat, a researcher at the Built Environment Observatory, said allocating a share of units in investment projects to social or affordable housing was a positive approach, but would require a legal framework to regulate implementation and ensure transparency.
Speaking to Al Manassa, Shawkat pointed to similar international practices, including in London, where property developers are required to allocate between 20% and 50% of units in some projects to affordable housing at cost price. He said this approach offers an alternative to requiring investors to surrender part of their land for social housing, with the cost of those units instead factored into the project’s finances.
However, Shawkat said assessing the value of providing 200,000 housing units in Egypt would first require determining the timeframe for their completion and comparing the target with actual demand. He estimated that low-income groups need around 300,000 units annually, adding that housing support should not be limited to homeownership but should also help poor families access rental housing, particularly in rural areas, where large sections of the population do not benefit from developments in new cities.
According to Shawkat’s estimates, the total number of units delivered under the social housing program, launched in 2014, has so far reached only around 700,000. This, he said, underscores the need for multiple approaches to addressing the housing crisis.
Maximizing investment returns
From an economic perspective, the deal marks a major expansion of TMG’s operations. It covers four projects spread across different areas and includes residential, tourism, industrial and other activities.
When announcing the agreement, Prime Minister Mostafa Madbouly said partnerships with the private sector allow the state to benefit from project revenues and profits over an extended period, rather than selling land and receiving a one-off payment.
“We can imagine that the state’s return from these projects will be sustainable and continuous, rather than simply selling land and walking away. Here, we are entering into a partnership with the private sector, allowing us to maximize the returns on investment and the profits generated by these projects,” Madbouly said.
The partnership comes as the group reported net profits of around 10 billion pounds ($183 million) in the first half of this year. Its stock also rose by more than 6% during the trading session in which the agreement was announced, amid expectations that the new projects would boost its business.
Mostafa Amin, a financial-sector analyst at Mirage Holding for Investments, said the deal was large relative to the group’s land portfolio, which totals around 115 million square meters. He noted that the company had never previously entered into a partnership with the government on this scale.
Salma Atef, a real estate analyst at Naeem Brokerage, said in a research note reviewed by Al Manassa that the large areas covered by the new projects would help the group maintain sustainable sales growth above the levels achieved by its existing developments.
The group recorded real estate revenue of 36.7 billion pounds ($675 million) in 2025, making it one of the country’s largest developers by sales. However, sustaining revenue growth at the same pace has raised questions amid mounting criticism of high housing prices and concerns that the property market could slow as buyers face increasing financial pressure, including those in higher-income brackets.
Atef told Al Manassa that the new projects’ diverse activities, spanning commercial and administrative spaces, hospitality, industry, logistics services and tourism, would give the group opportunities to diversify its revenue streams and reduce its reliance on residential sales alone.