Egypt eases ownership of land by foreigners with new amendment
Foreign investors residing in Egypt can now own land in the country purposely for investment projects in the same measure as citizens, according to the new amendments to the Desert Land Law of 1981.
The amendment law permits foreign nationals to purchase and possess land in the expansive desert regions of the country. Additionally, it grants foreigners the right to own more than 51% of companies involved in investments related to developments in desert land, Ahram Online reports.
Details of the second paragraph of Article 11 stipulate that foreign investors can procure land for investment purposes, following the guidelines outlined in the investment laws of the country. This provision further removes the requirement that necessitates Egyptian ownership to constitute a minimum of 51% of the company's capital, and individual ownership is not to exceed 30% of its capital.
The second paragraph of Article 12 bestows upon the Egyptian president the authority, subject to cabinet approval, to treat Arabs as Egyptians in terms of land ownership. This provision comes into play when an investor is unable to acquire the land required for their investment, under the stipulations of the Desert Land Law or the Investment Law.
The amendment forms part of the government’s plan to open up the country to more potential foreign investments amid economic woes.
However, some Members of Parliament (MPs) expressed strong opposition to the amendment, raising concerns about national security and fears of a possible takeover of arable land by foreigners, Enterprise News reported.
MP Diaa Eddin Dawoud highlighted the potential for "malicious foreigners" to own substantial land areas, posing a threat to national security. Atef El Maghawry from Tagammu cautioned that the amendment to desert ownership laws might lead to a situation where "foreigners could own 90% of our land."
In response to the concerns raised by MPs, Parliamentary Affairs Minister Alaa Fouad clarified that the law stipulates a mandatory security approval for all land purchase requests from foreign investors. Fouad emphasized that land ownership in Sinai is governed by a distinct law, rendering it impossible for foreigners to own land in the Peninsula.
