Criminal Exposure In Egypt’s Real Estate Sector: A New Risk Landscape For Developers

Real estate has long occupied a central position in Egypt’s economic and social structure, serving as a primary engine for investment, and urban development. The sector contributes significantly to national economic growth evidenced by how it contributes to approximately 20% of Egypt’s GDP, attracts domestic and foreign capital, and plays a vital role in meeting housing demands for a rapidly expanding population.

Traditionally disputes regarding real estate in Egypt have been regarded as purely civil matters that are resolved through compensation or contract enforcement. However, in a recent case by Egyptian Cassation Court (The “ECC”), Case No. 18424/93 Judicial Year Dated 7 April 2025, in application of Law No. 181 of 2018 (The “Consumer Protection Law or “CPL”), have significantly shifted this approach by affirming that civil liability can evolve into criminal liability when consumer protection rights are violated.