«Alhokair to pay EGP 1 billion to settle dispute in Egypt

Cairo—Agencies: Egyptian Investment Minister Yahya Hamed revealed that his ministry had reached settlements totaling approximately 10 billion pounds ($1.42 billion) with Arab investors over the past 40 days, including the companies “Damac” and ”Al-Futtaim” in the UAE, and ”Al-Hokair” in Saudi Arabia. The minister said at a press conference yesterday: “We agreed with Saudi “Al-Hokair” to settle the dispute with them in exchange for a payment of one billion pounds in hard currency, and they agreed. Al-Hokair promised to inject two billion pounds in new investments next year in the construction sector.“ Egypt is seeking to resolve disputes over land prices and other issues with about 20 foreign and domestic investors in an effort to avoid costly arbitration and restore confidence in the country’s economy. Resolving these disputes would help bring hard currency into the country, which is facing economic, political, and security challenges, and would reassure investors looking to make new investments in Egypt. Reuters quoted Hamed Nafeh as denying any intention to withdraw Saudi investments from Egypt, saying, ”It is not true that there is any threat to withdraw Saudi investments from Egypt.” The chairman of the Saudi-Egyptian Business Council had confirmed the day before yesterday that Saudi investments totaling up to five billion riyals ($1.3 billion) would be withdrawn and frozen from Egypt if no settlement could be reached with the government. Hamed was appointed Minister of Investment in a cabinet reshuffle last month; at 34 years old, he is one of the youngest ministers in Egypt’s modern history.
The young minister aims to boost Egypt’s sluggish economic growth rate to 7 percent within two years by improving the private investment climate. He said at yesterday’s press conference: “The country’s economy will grow by 2.2 percent in the current fiscal year 2012–2013, which ends on June 30,” he said, “which is unchanged from the previous year,”