Unofficial but not strictly illegal trading channels, including informal currency exchange and off-book property deals; prevalent where formal FX and title systems are constrained.
Related terms
- Inflation hedge
An asset expected to hold value as prices rise; property is widely used as one in Egypt.
- Informality
The prevalence of unrecorded or unregulated activity, common in emerging-market real estate.
- Institutional quality
The strength and reliability of a country's legal, regulatory, and governance systems; weak institutions raise transaction risk and are the deepest driver of e…
- Market transparency
The availability and reliability of data and processes in a market; often low in frontier markets.
- Master developer
A large entity that develops land and infrastructure, then sells or partners for vertical build.
- Parallel exchange rate
The unofficial market rate for a currency when it diverges from the official one; a wide gap, as seen in Egypt and Nigeria, signals FX scarcity and distorts pr…
- Political risk
The risk that political events, unrest, or policy shifts damage an investment; the 2011 Egyptian revolution and periodic regional instability are why buyers pr…
- Repatriation risk
The risk of being unable to move capital or profits out of a country.