Government amends Sinai Development Law

The Cabinet approved on Tuesday a presidential decree amending the Sinai Development Law, aimed at "avoiding legal disputes with investors,” according to Cabinet spokesperson Hossam al-Qawish.
Qawish said the usufruct clause has been extended from 30 to 50 years, with a possibility of extension until 75 years and inheritance rights.
Also, Article 2 has been amended, restricting ownership of property in Sinai to Egyptian individuals of Egyptian parents, and to Egyptian companies, completely owned by Egyptians.
In the case a foreign investor who had acquired land and real estate under the previous legislation dies, his heirs should transfer the ownership of the land to an Egyptian within six months, while retaining the usufruct rights. The government would then buy the land for the same price after six months.
For Egyptians of dual nationality, their heirs are allowed to own property, even if they are dual nationals as well. In case the Egyptian nationality is dropped, the owners are to be treated as foreigners.
The amendments give the president the right to allow foreigners to own more than 45 percent of company shares, provided the company implements integrated development projects. Also, the president may exempt cities, parts of cities, coastal areas, New Suez Canal development projects and special economic zones from the provisions of the Sinai Development Law.
The amendments also separate the power of the state authorities from that of the Sinai Development Authority so as to avoid conflict, provided that the latter carries out the policies of the government.
According to the amendments, the state authorities issue all permits, licenses and contracts, while the role of the Sinai Development Authority is limited to follow-up, supervision and assistance.
Edited translation from Al-Masry Al-Youm

Related Articles

Back to top button