Egypt to offer citizenship in exchange for foreign currency deposits or investments

PM's new move underlines government's bold attempts to address economic crises

Cairo is moving to stabilise its economy, which has been hit hard by the Ukraine-Russia war. AFP

Egypt is expanding requirements for acquiring its citizenship to include foreign currency deposits and the purchase of real estate, according to a decree by Prime Minister Mostafa Madbouly.

Published in the Official Gazette, the decree offers citizenship to foreigners who buy property worth at least $300,000. It also offers it for an investment of at least $350,000 plus depositing another $100,000 at the treasury that cannot be refunded.

Another avenue is to deposit $500,000 at the Central Bank that's refundable three years later in Egyptian pounds. The exchange rate of the day of the refund would be applicable and no interest would be paid.

A non-refundable amount of $250,000 can also guarantee citizenship, according to the decree.

Applicants can pay the $250,000 in instalments over a 12-month period, with citizenship granted when the full amount is paid. Those who fall behind on payments, change their mind or can no longer pay will be refunded the equivalent of what was paid in Egyptian pounds.

The new citizenship rules appear to be part of the government's bid to ease its foreign currency crunch that has had a devastating impact on the economy of the most populous Arab nation. The economic crisis endured by Egypt also features a 50 per cent decline in the value of the Egyptian pound and double-digit annual inflation that stood at more than 30 per cent last month.

Currently, the government is charging foreign tourists dollars or euros for their train rides and has introduced a car-import, foreign currency scheme for Egyptian expatriates.

Street lights and the night-time illumination of state buildings have been dimmed since last year in Cairo and other major cities to make more natural gas available for export.

The government blames the nation's economic woes entirely on the fallout from the Russia-Ukraine war, but critics contend that excessive borrowing and spending on large national projects have contributed to the crisis.