Egypt says dispute with Dubai's Damac is over

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Park Avenue, Cairo, Damac's first mall development. (Photo for illustrative purposes only)

Park Avenue, Cairo, Damac's first mall development. (Photo for illustrative purposes only)

Egypt has said it has settled disputes with the Dubai-based developer Damac involving projects dating back to the Mubarak era - an agreement the government hopes will reassure prospective investors.

The government said the settlement covered three disputes: two involving housing projects near Cairo and the third involving a piece of land on the Red Sea.

It said the deal meant Damac would withdraw a suit against Egypt filed with the International Center for Settlement of Investment Disputes in Washington.

The government said the settlement would spare Egypt the risks of international arbitration, safeguard its image abroad and reassure investors scared off by continuing political uncertainty.

Damac could not immediately be reached for comment.

It filed its international arbitration case against Egypt in 2011 over the conviction of its chairman and owner, Hussain Sajwani, in connection with a 2006 land deal in Gamsha Bay on the Red Sea.

Several cases alleging that president Hosni Mubarak's government sold off land too cheaply have gained momentum since his overthrow in February 2011.

Sajwani was convicted in 2011 in absentia and handed a five-year prison sentence. The case also resulted in a five-year sentence for Zoheir Garranah, a former tourism minister, who was found guilty of squandering public funds by selling the land too cheaply. Damac described it at the time as a case of guilt by association.

Under the settlement announced on Wednesday, ownership of the land will be restored to the state.

Founded in 2002, Damac has completed 37 buildings and has another 66 buildings under construction across the Middle East and North Africa.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Do celebrity branded projects ever work?

Do celebrity branded projects ever work?

The long list of celebrity-endorsed real estate developments...

1
Is this the end of the Gulf’s Indian cash dash?

Is this the end of the Gulf’s Indian cash dash?

From currency woes to taxation loopholes closing and a clampdown...

2
Mall talk

Mall talk

Plans for Dubai’s Mall of the World have made headlines all over...

1
Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew