What We Know About the Sale of Land in Ras El-Hekma to Emirati Sovereign Entities
In the past few days, news spread on social media indicating a full or partial sale of the land of the city of “Ras El-Hekma” in Matrouh governorate, located within the new North Coast strip, causing confusion among citizens because of the absence of official information about the deal.
Two days later, government sources made statements denying that the coastal city was being sold to Emirati investors, but confirmed that the matter is under study and will be announced soon.
We have learned that the anticipated project to develop the city of Ras El-Hekma on the North Coast includes agreements between the Egyptian Ministry of Housing and several Emirati sovereign entities to carry out partnership contracts on an in-kind and cash share basis, with the Emirati side paying about USD 22 billion in exchange for buying land in that area. Its contracts are likely to be signed this week. Also, negotiations are under way with a number of major global companies and investment funds to reach an agreement, to be announced soon, on starting the development of the area, which covers more than 180 square kilometres.
Sources said the anticipated agreement with the Emirati entities includes selling part of the Ras El-Hekma land to implement distinctive entertainment, residential and tourism projects. In return, the Ministry of Housing will receive residential units that it will market and collect the sale proceeds for, and it will be agreed that the work will be completed within a period not exceeding seven years.
According to the sources, the Egyptian government stipulates that the project’s implementing party be Egyptian contracting companies.
It is now one of the companies affiliated with the Holding Company for Construction (a government company). Emirati businessman Mohamed Alabbar, founder of Emaar Properties, is being tasked with managing and supervising the construction operations. Alabbar stated earlier that Emaar’s total investments in Egypt will reach about USD 10 billion this year.
On the Zawia3 platform you can find an investigative report produced with the support and supervision of the ARIJ network, titled: How Did the Emirati Company “Emaar” Cause the Erosion of Egyptian Beaches?. The company caused beach erosion in the area east of the Marassi yacht marina, over approximate distances ranging between eight and nine metres and up to 11 metres, according to Google Maps.
Talaat Moustafa in an International Consortium to Develop “Ras El-Hekma”
Egypt’s Talaat Moustafa Group said in a statement to the Egyptian Exchange on Monday, responding to circulating reports that it had actually received land in the city of Ras El-Hekma for development, that a project on the North Coast covering 5,540 feddans is still among many projects under study.
Local media reports had said the group is part of a consortium of Egyptian and Emirati companies that will invest billions of dollars in developing the Ras El-Hekma area on Egypt’s North Coast. The reports said two Egyptian companies, Talaat Moustafa Group, owned by businessman Talaat Moustafa, and Orascom, owned by the Sawiris family, will be part of the global consortium that will win the project to develop the city, to make it a global tourist destination like the city of New Alamein.
Shares of both Emaar Misr for Development and Talaat Moustafa Group jumped in trading on the Egyptian Exchange as news circulated about their participation in the project to develop the city, which is expected to bring Egypt revenues of USD 22 billion over seven years. “Emaar Misr for Development” shares rose by about 16% to EGP 4.77, and “Talaat Moustafa Group” shares rose by 0.25% to EGP 33.91.
Half a Million Dollars Seized From a Businessman After His Arrest
The authorities arrested a businessman and his brother in possession of half a million dollars on charges of illegal currency trading. Investigations by the General Administration for Combating Public Funds Crimes stated that the owner of an import and export company and his brother, the company’s manager, traded in foreign currency and held amounts reaching about half a million dollars, EGP 15 million, 55,000 euros and other currencies.
Three Years in Prison for Selling or Buying in Foreign Currency
Islam El-Gazzar, spokesperson for the Consumer Protection Agency, said in a TV interview on the programme “Hadith Al-Qahera”, broadcast on Al-Qahera Wal Nas, that the Central Bank of Egypt law criminalises selling a product or good in Egypt in dollars or any foreign currency instead of the Egyptian pound, adding that the penalty reaches three years in prison.
He explained that some sectors and establishments are exempt from this decision, namely some hotels and products dealt in inside the free zone, noting that a number of incidents in this regard have been detected, that they received some complaints about cars being sold in Egypt in foreign currency, and that the Public Prosecution was notified.
Law No. 88 of 2003 on the Central Bank, the Banking Sector and Money, concerning the regulation of foreign exchange operations, was amended to curb currency trading and toughen the penalty, as the amendment of Article 126 of the law stipulated “punishment by imprisonment for no less than six months and no more than three years, and a fine of no less than one million pounds and no more than five million pounds, for anyone who violates any of the provisions of Articles (111, 113, 114 and 117) of Law No. 88 of 2003 regulating foreign exchange operations”.
Also, the Central Bank and Banking Sector Law No. 194 of 2020 stipulates that dealings within Egypt shall be in Egyptian pounds, and that dealing in foreign currency outside accredited banks or entities licensed to do so is prohibited. Article 233 of the law sets the penalty for anyone who commits this violation at imprisonment for no less than three years and no more than ten years and a fine of no less than one million pounds and no more than five million pounds, or the amount of money involved in the crime, whichever is greater.
Egypt Cancels State Bodies’ Tax Exemptions… Except for the Military Establishment
The Egyptian cabinet on Wednesday approved a draft decision on a regulation under which many tax and fee exemptions granted to state bodies are cancelled, in implementation of a key condition set by the International Monetary Fund in the three-billion-dollar agreement signed a year ago.
In the USD 3 billion financial support agreement, the International Monetary Fund urged Egypt to achieve equality and strengthen the rules of fair competition between the public and private sectors. The government said in a statement that the cancellation of tax and fee exemptions applies to all investment or economic activities carried out by state bodies.
It added that these bodies include units of the state’s administrative apparatus, local administration units, national, service and economic public authorities, agencies with special budgets, as well as entities and companies owned by any of the aforementioned bodies, whether directly or indirectly, whatever their legal form.
It continued: “As well as entities and companies in whose ownership any of those bodies participate, whether directly or indirectly, whatever the percentage of this participation and whatever the nature of the activity of the body, entity or company participating in the entity or company, or the use of the funds obtained from carrying out the investment and economic activity”.
The statement indicated that this does not apply to exemptions granted for military works and tasks and the requirements of defending the state and protecting national security.
Pharmaceutical Companies Request a 30-50% Price Increase Amid the Foreign Currency Crisis
Pharmaceutical companies will hold a meeting with the Egyptian Drug Authority next week to discuss their requests to raise the prices of medicines by between 30% and 50%, in light of the continuing foreign currency crisis, shortages of raw materials and rising shipping costs following the disruption in the Red Sea as a result of attacks by the Houthi group, which forced pharmaceutical companies to resort to more expensive air freight.
About 1,500 medicines, representing about 9% of the total 17,000 sold in the country, have been affected by the shortage of raw materials, according to an official source speaking to “Enterprise”. Companies are seeking to cancel the fixed-price contracts signed with the government, looking to raise prices by 40% on current contracts, while local reports indicate the government has already agreed to an increase of 20% of the requested rate.
In the same context, Health Minister Khaled Abdel Ghaffar confirmed yesterday that some products, especially imported ones, have seen shortages in the past period, pointing to the formation of a committee including the various concerned bodies working to provide medicines and medical supplies. Prime Minister Mostafa Madbouly stressed the importance of working to provide medicines and medical supplies quickly, pointing out that a shortage of some medicines has been observed.
According to the government’s statement, there is continuous communication and coordination between the Egyptian Authority for Unified Procurement, the central bank and the Drug Authority to intensify work to provide the required needs of medicines that have shown shortages, with the speedy customs release of those held at customs. Global companies have begun localising the industry in Egypt, including five global laboratory companies that will localise their industries in Egypt in cooperation with Egyptian private sector companies.
Dr Ali Auf, head of the pharmaceuticals division at the Federation of Chambers of Commerce, had indicated in TV statements that a request will be submitted to the Egyptian Drug Authority early next week to adjust the prices of 1,500 medicines in light of what he described as developments in the local and regional situation and rising costs. He said export revenues rose last year from USD 600 million to USD 1 billion, pointing out that Egyptian medicine is in demand globally.
The Government Detects Medicine Shortages
Prime Minister Dr Mostafa Madbouly said his government is working to provide medicines and medical supplies quickly, with continuous directives that this goal be at the top of priorities. He pointed out that a shortage of some medicines has been detected and that reserves of these and other medicines must be increased immediately to achieve the goal of sustainable health services.
This came during a meeting he held today with the Governor of the Central Bank, the Minister of Health, the head of the Egyptian Authority for Unified Procurement, Medical Supply and Management of Medical Technology, and a number of other bodies.
The Poultry Producers’ Union Appeals to Citizens to Limit Purchases
Mohamed Saleh, a board member of the General Union of Poultry Producers, said he appeals to citizens to limit their purchases of poultry and meat this week until prices are reduced. Saleh added in an interview on Sada El-Balad TV that the latest rise in poultry prices had been expected for 20 days, coinciding with rising prices of production inputs, namely feed, noting that Egypt imports 90% of its maize needs and 80% of its soya needs. He continued: “Traders are the ones who set prices, and the traders who raise prices sharply are known in the market”.
Restrictions on Crossing From Gaza to Rafah
After numerous investigations were published about corruption related to crossing from Rafah to Gaza and the payment of bribes for coordination to cross to the Egyptian side, the Egyptian authorities decided to officially impose fees on those crossing to Rafah, to be paid in exchange for an official receipt from the Egyptian authorities. Sources close to the Egyptian authorities said the purpose of this measure is primarily to support the Palestinian cause by combating the displacement of Palestinians from their land to Egyptian territory. The source considered Egypt the largest country supporting Palestinians in terms of bringing in aid. The sick, the injured, special cases and holders of foreign nationalities are allowed to leave the Strip.
In Response to the Suspension… Spain Announces Additional Aid to UNRWA
Spain announced on Monday additional aid worth 3.5 million euros to the UN Relief and Works Agency “UNRWA”. Madrid works bilaterally at the national level with UNRWA and Gaza, although it has taken measures to look into the accusations against UNRWA and to follow up on the internal investigation being conducted by the United Nations.
Madrid contributed 18.5 million euros directly to UNRWA in 2023, including 10 million euros approved last December, after the decision to triple development and humanitarian aid to the Palestinian territories.
This comes after UNRWA in Gaza suspended 12 employees whom the Israeli occupation authority accused of involvement in Operation “Al-Aqsa Flood”, launched by the Palestinian resistance factions led by Hamas on 7 October, which led UNRWA’s main donors, most notably the United States, the United Kingdom, Italy and Switzerland, to announce the suspension of their aid to the agency before the end of the internal investigation being conducted by the United Nations.
Gaza Death Toll Rises to 27,365 Since the Start of the Aggression
The Palestinian Ministry of Health announced today, Monday, that the toll of the Israeli aggression on the Gaza Strip has risen to 27,365 killed and 66,630 injured since the start of the Israeli aggression on the Strip on 7 October.
The ministry said the Israeli occupation committed 14 massacres in the Strip, killing 127 martyrs and injuring 178 in the past 24 hours.
