In Egypt the World Bank Finds a Balanced Solution for the Housing Gap


An affordable housing project in Haram City, Egypt, set up in 2013, aims to build 50,000 to 70,000 units for a population approaching 300,000 inhabitants in Haram City. At the same time, the Affordable Mortgage Finance Program Development Loan (DPL) co-financed by the World Bank has to help low and middle income earners buying these new houses.



  • Building new affordable houses for low and middle earners
  • Setting up a new financial program to help them access to housing loans


Egypt is facing a shortage of affordable houses. In 2014, 18 percent of Egyptian families lived in single-room dwellings. As a solution the World Bank decided to finance a two sides’ program.

First, Haram City- a city located 32 km west of Cairo- is the scene of a large-scale affordable housing construction project. More than 50,000 homes will accommodate a population of over 300,000 inhabitants. Institutional and recreational buildings will also be constructed such as schools, a shopping center, sporting clubs and other facilities.

Then, a $300 million program, The Affordable Mortgage Finance Program Development Loan (DPL), aims to change the current model of subsidies for low income housing in Egypt. The former system targeted supply-side subventions, going to the developers. Now, the idea is to create a demand-side system, going directly to low income households. The targeted populations receive income from LE 1,000- €120- to LE 2,500- €300- per month. The amount of the subsidy varies with their income. It is inversely proportional to the beneficiary's monthly income.


According to Sahar Nasr, a World Bank economist, the DPL will “alleviate pressure on the government to subsidize housing for middle and low income households by tapping into the banks’ liquidity. It will also play an instrumental role in addressing high unemployment problem by creating job opportunities for the growing young labor force in the building of new houses.”