Maintenance. We are currently updating the site. Please check back shortly

Thomson Reuters Foundation

Inform - Connect - Empower

Egypt issues law barring challenges to state deals

Source: Reuters - Tue, 22 Apr 2014 20:45 GMT
Author: Reuters
cor-gov
Reda Shehata, a supporter of Egypt's former president Hosni Mubarak drinks tea as he holds his poster, outside the police academy, where Mubarak's trial will take place, in Cairo April 7, 2014 REUTERS/Amr Abdallah Dalsh
Tweet Recommend Google + LinkedIn Email Print
Leave us a comment

CAIRO, April 22 (Reuters) - Egypt's interim President Adly Mansour on Tuesday approved a law that would restrict the right to challenge state business and real estate deals to only the government, its involved institutes and business partners, a presidency statement said.

The law, long-waited by businessmen and investors, is meant, according to the presidential statement, to boost business in Egypt, badly hit since a 2011 uprising toppled autocratic president Hosni Mubarak.

"The right to contest the state deals has to be from one of the state's parties...or the contracted with entities," the presidential statement said.

Many state-land and business deals were revoked after they were taken to court by uninvolved persons, which harmed business confidence in the Arab world's biggest state.

The cabinet had approved a draft for the law earlier this month.

Since the 2011 revolt, Egyptian courts have issued at least 11 rulings ordering the state to reverse deals signed by former administrations.

The lawsuits were mostly brought by activists and lawyers who allege that companies were sold off too cheaply in deals that were representative of corrupt business practices during the 30-year Mubarak rule.

Gulf Arab businessmen have repeatedly cited a lack of guarantees that their money will be safe in Egypt as a reason for holding back investment.

Although the new law is expected to remove legal hurdles, investors say they still seek to see political stability before they decide to put in more cash into one of the Arab world's biggest economies.

(Reporting and writing by Yasmine Saleh, Editing by Angus MacSwan)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of the Thomson Reuters Foundation. For more information see our Acceptable Use Policy.

comments powered by Disqus
Most Popular
TOPICAL CONTENT
Topical content
LATEST SLIDESHOW

Latest slideshow

See allSee all
FEATURED JOBS
Featured jobs