Hi Caroline and welcome.

Yes foreigners can rent out their property

See http://www.propertycommunity.com/forum/egypt...an-lawyer.html

Paragraph taken here states

1- I am an Egyptian / a foreigner who purchased my property before the decree of 2005: You are the landlord of your property, you own it for infinite time, and you have the right to sell it or to dispose of it legally or physically.
2- I am a foreigner who purchased my property after the aforementioned decree was issued: You have a usufruct right for 99 years. You can live in your property, rent it out for tenants, or dispose of your right legally, but not physically.

I know someone that has 2 properties in Sharm and he rents them out on a long term basis.
Also you will find that a lot of the developments are offering rental agreements which again confirms that you can rent out your property.

Which area of Sharm are you considering? There is a thread on Sharm along with a couple of developments. I am buying in Nabq on Sierra and it should be ready any day now. Please feel free to post any questions in the Sharm thread http://www.propertycommunity.com/forum/egypt...ing-sharm.html

Regards

Alison