إيجيبت جلف للتنمية والاستثمار

Egypt-Gulf for Investment & Development
2016

On 12/1/2016, the settlement request was made by Yahya Badawi, a consultant of the company, to the Chairman of the Commission for the Settlement of Investment Disputes, guaranteeing the financial and technical bases and the structural foundations of the contract with the state. This led to a convergence of views between the company and the state, as what happened in the city project. A copy was sent to Abdullah al-Ghani, the Technical Secretariat of the Ministry of Defense, whereby the conversion activity was presented with the finishing touches in accordance with the government.

On 12/1/2016, the Technical Secretariat of the Ministry of Defense responded to the company. The response included a decision to hold a joint conference with the various state agencies and the company at the headquarters of the Ministry of Defense on 27/1/2016. The conference discussed the status of the finalized process, enforceable to both parties. This was presented to the Council of Ministers. The company was requested to finalize any decisions in light of the conference on 1/9/2016.

On 12/1/2016, a grievance was submitted to the Committee for the Settlement of Investment Disputes against the Prime Minister in his capacity as the Minister of Agriculture and as the General Authority for Reconstruction Projects and Agricultural Development.

On 27/1/2016, a conference was held between the company and various state agencies, such as the Ministry of Defense, to present the integrated proposal of the project with all of its component parts, such as the airport and railway. At the end of the conference, two specialized committees were formed in order to study the airport and the railway. The goal was to meet in two weeks' time, but this did not happen.

On 7/2/2016, the company sent a letter to Abdullah al-Ghani, the Technical Secretariat of the Ministry of Defense, to request a meeting of the two specialized committees, which had been recommended at the conference with the Ministry of Defense on 27/1/2016. In March 2016, a meeting was convened with the Attorney General on behalf of the Chairman of Higher Public Funds in Egypt. This advisor, Ahmed al-Bahrawi, undertook the drafting of a settlement between the company and the Egyptian government, whereby the aforementioned parties announced their faith and assurance in the settlement.

On 10/4/2016, the company addressed the Committee for the Settlement of Investment Disputes in response to the filed grievance. The company sent a copy of this grievance, highlighting the necessity to convene an emergency session on this grievance, with the goal to discuss the company’s suggested settlement proposals.

On 17/4/2016, the company sent two memorandum notes to the Minister of Agriculture and Land Reclamation and the Minister of Irrigation and Water Resources in light of the letter that the General Authority for Reconstruction Projects and Agricultural Development sent to the company on 20/1/2015. This letter authorized the provision of rationed water from the irrigation source to the entire area of the project. This was based on the original contract and quickly determined the method and timetable of how the ministers would provide the necessary water for the irrigation of roughly 27,000 acres.

In April 2016, the company drafted a contract settlement at a meeting on behalf of the state’s public funds. This draft included all the stipulations that had been previously discussed with the government, such as the payment in kind, the airport, the railway, etc.
2015

On 21/1/2015, the Executive Director of the General Authority for Rehabiliation Projects and Agricultural Development issued a register to establish pumps in Al Ayat to supply the Giza Canal. The ministry confirmed the issuance of rationed water from the irrigation source to irrigate the full extent of the company’s land. The attached letter was from the Ministry of Irrigation and Water Resources.

On 24/2/2015, the company was invited by the Prime Minister, Ibrahim Mahlab, to attend a meeting whereby the government attempted to determine the best settlement solution. The meeting was convened in the presence of the Prime Minister, Dr. Najla al-Ahwani, the Minister of International Cooperation, Dr. Ashraf Salman, the Minister of Investment, and a representative of the armed forces. The government approved in principal the company’s project and offer.

On 3/1/2015, the company submitted a letter to the Prime Minister, Dr. Ibrahim Mahlab, an engineer by training. The letter detailed the request to meet at the headquarters of the Council of Ministers on Tuesday 24/2/2015.

On 16/4/2015, Dr. Najla al-Ahwani, Minister of International Cooperation and Chairwoman of the Technical Secretariat of the Committee for the Settlement of Investment Disputes, issued a letter to the Deputy Chairman of the Board of Directors of Egypt-Gulf to review the facilities provided by the government to the company, as well as to review the obligations, proposals, and violations of the company.

On 3/5/2015, the company issued a letter to Dr. Najla al-Ahwani, Minister of International Cooperation and Technical Secretariat of the Committee for the Settlement of Investment Disputes, in response to the letter issued on 16/4/2015. On 16/8/2015, the company issued a letter to the ambassador Abdul Hameed al-Filkawi, Assistant Foreign Minister for Arab Affairs. The offer submitted to the Egyptian Council of Ministers on 1/3/2015 was also enclosed.

On 11/8/2014, the company sent an explanatory note to Mustafa Muhammad of the Administrative Control of the Egyptian government, explaining the developmental stages of the company’s issue from the start of the contract to date.

On 17/12/2015, the company addressed a letter to the Kuwaiti ambassador in Egypt, Salem al-Zamanan, which set a meeting with Ibrahim Mahlab in order to find an amicable solution of the company’s issue.
2014

On 5/2/2014, the company was invited to a meeting with the Committee for the Settlement of Investment Disputes. Representatives from the Ministry of Defense, the Urban Planning Authority, and the General Authority for Rehabilitation Projects were also present. Dr. Najla al-Ahwani, Chairwoman of the Technical Secretariat for the Committee for the Settlement of Investment Disputes, also attended. The meeting specified the new measurements made by the armed forces. It was agreed that the exchange for the transfer of activities totaled 47 billion Egyptian pounds. At the meeting’s conclusion, it was also agreed that the company would present a timetable and method of payment in exchange for the land. In light of all of these considerations, the meeting was concluded with an agreement of all the parties present.

On 20/2/2014, Dr. Najla al-Ahwani sent a letter to the company, which included the company’s financial presentation regarding the change of land activity from agriculture to construction. This was to be done in accordance with the agreement reached during the meeting on 5/2/2014 in which the company clarified its method of payment for the transfer of activity, as well as any relevant approvals issued by ministerial decree for undertaking the general project plan.

On 25/3/2014, the company responded to Dr. Najla al-Ahwani. The response was in reference to the financial offer presented by the company on 20/2/2014, which determined the company’s proposal to terminate the issue of settlement. The first proposed commitment was agreed upon on 5/2/2014 and determined a specific time frame, on part of the company, to implement the project. The second proposal suggested a return to the original signed contract on 16/2/2002 negotiated between the General Authority for Rehabilitation Projects and the company, which included the implementation of the project as an agricultural endeavor.

On 15/4/2014, the company addressed a letter to Dr. Najla al-Ahwani, which confirmed the company’s full commitment to what was concluded during the 5/2/2014 meeting. In the event of the failure to reach a final solution, the company was ready to move forward with agricultural activity, provided that the state furnished the necessary water requirements from the irrigation source.The company also reserved its right to request compensation from the government for any profit loss during the period of the project’s suspension.

On 15/6/2014, Dr. Najla al-Ahwani responded to the company’s letter sent on 15/4/2016. It concluded the issue of the two solutions, but not the third. The first settlement was to move forward in accordance with meeting convened on 5/2/2014. The second settlement referred to the original contract signed on 16/2/2002 between the General Authority for Rehabilitation Projects and the company, with regards to land reclamation and cultivation. Furthermore, the Egyptian government reserved the right to take all legal measures for the preservation of agricultural and real estate wealth.
2013

Conveyance of the required technical study to the Ministry of Housing for resolution

During the final meeting, the company objected to the proposal, as it was necessary to to resolve technical points related to measurements, construction sites, green areas, roads, population density, and other technical issues. It was suggested that technical aspects of the study be based on the recommendations of the Minister of Housing, Tariq Wafeeq.

On 2/5/2013, the company received a letter from Dr. Najla al-Ahwani concerning the speed of the project communicated to the committee. The Minister of Housing requested maps so that he could assess the company’s proposals.

On 14/5/2013, Dr. Najla al-Ahwani requested a meeting to finalize the agreement with the government in the presence of the Minister of Housing, the Chairman of Urban Planning, the Ministry of Defense, and the Committee for the Settlement of Investment Disputes. The company sent a delegation to the meeting in which the government announced that the 47 billion Egyptian pounds was the only option. The company refused this proposal, stating that the payment must be commensurate with measurements authorized by the armed forces and project timetable. The meeting concluded without reaching a final resolution.

On 19/5/2013, the company demonstrated its serious resolve in re-balancing the negotiations. The company officially agreed to the sum of 47 billion Egyptian pounds proposed by the government. However, the company requested specific technical terms to make the project economically feasible, as well as reasonable payments commensurate with applicable laws.

On 21/5/2013, Ahmed al-Husseini, the advisor and representative for the Committee for the Settlement of Investment Disputes, called the company and stated that the government would accept the company’s offer in principle. However, the company must pay a 50% advance of the agreed upon sum, roughly 23.5 billion Egyptian pounds, by check. This would occur provided that the settlement is signed before the issuance of the presidential decree and before granting the company the necessary permits, as well as after the check is submitted to the government. A settlement was offered to the Council of Ministers. In case of acceptance by the council, the settlement was to be signed following the council’s agreement. The remaining sum would be defrayed, in American dollars, for three years provided that there are no difficult conditions not commensurate with applicable laws

On 23/5/2013, the company refused the investment proposal of Ahmed al-Husseini. The company requested that the responsible parties reconsider, stating that the investment offer was neither rational nor feasible, and that it was unable to review the offer. There was no reason for the unnecessary complexity of the issue. The company management submitted a copy of Ahmed al-Husseini’s investment proposal to the President and to the Prime Minister. A copy was also submitted to the Minister of Housing, the Minister of Investment, the Ministry of Defense, and the Committee for the Settlement of Investment Disputes.

On 26/6/2013, President Morsi’s speech came as a shock since he announced the company’s name and stated that the government undertook the change of activities to 47 billion Egyptian pounds.

On 27/10/2013, a meeting was convened between Abdul Fattah al-Sissi, the Minister of Defense, and the company. The Vice Chairman of the Kuwaiti National Assembly and the Kuwaiti ambassador to Egypt also attended. The company proposed a road map for the settlement and a timeframe for the implementation of its resolution.

On 24/11/2013, a meeting with the armed forces was convened, which formed a subcommittee within the Committee for the Settlement of Investment Disputes. This was done in approval with the Prime Minister to study the measurements and determine payments for the change of activities.
2013

On 9/1/2013, the company called for a meeting with the Committee of Settlements, which reported that the only acceptable sum was 47 billion Egyptian pounds. The company was allowed to re-submit the study, including technical conditions and permits so that the results would be commensurate with the aforementioned sum.
2012

The government of President Muhammad Morsi sets a new price with no basis

A renewal of the work by the Committee for the Settlement of Investment Disputes was undertaken at the time of President Morsi’s inauguration. At the meeting, a new price was issued for the land by a special committee. The price was 47 billion Egyptian pounds. No quantative explanation of the rationale by which this price was reached was issued. These new assessments for the conversion of land activity were summarily rejected by the company.

The new president met with His Highness, the Emir of Kuwait, at a conference in Addis Ababa. On the sidelines of the conference, Kuwaiti investors, among them representatives of the Egyptian-Kuwaiti Company for Development and Investment, discussed their concerns regarding the situation in Egypt. The President promised that he would resolve the issue upon his return to Egypt.

On 30/9/2012, a meeting with Dr. Najla al-Ahwani was convened in an attempt to bridge the dispute between the government and the company. It ended with an initial presentation explaining the financial aspects and calculation costs. Based on the negotiations concluded with Dr. Najla al-Ahwani, the company presented its final offer.

On 21/11/2012, the company made a final offer to the Prime Minister.
2012

The dispute was determined to be fair according the parties. The attempt to reach a settlement was undertaken by the General Authority for Reconstruction Projects and Agricultural Development.

Negotiations between the company and the state to determine a fair outcome stalled. The General Authority for Reconstruction Projects and Agricultural Development intervened to resolve the dispute. A meeting with Dr. Ali Ismail, the Executive Director of the board, discussed the previous settlement structure and was able to reach a rational solution for the benefit of the two parties as outlined below:
- The company provides the maximum measurements provided by the armed forces up to 120 meters above sea level.
- The application of the reconciliation principal confirmed that the land located on the Cairo-Alexandria Desert Road be set at a rate of 1.5 million Egyptian pounds per acre without height restrictions. This brought the total settlement amount to 22.5 billion Egyptian pounds for the total of 21,000 acres.

On 5/6/2012, the company officially responded to the General Authority for Reconstruction Projects and Agricultural Development to change the purpose of the land use.
2012

The Ministry of Finance sets the financial fees for the transfer activity

The Committee for the Settlement of Investment Disputes undertook the proposal to the State Services Committee of the Ministry of Finance. It limited the transfer of land activity for reclamation and cultivation to integrated urban constructional activity, in accordance with the map of activities provided by the company to the committee. In accordance with this proposal, the conversion activity would not exceed 12 billion Egyptian pounds, applying this to the aforementioned measurements authorized by the armed forces. The median measurements would not exceed a fourth of this and this would not exceed more than 2 billion Egyptian pounds. It is worth mentioning that the State Services Committee determined the price per meter of the city project to be 250 Egyptian pounds.
2011

On 20/3/2011, the Deputy Prime Minister and the Foreign Minister of Kuwait sent a letter to Dr. Yehia al-Gamal, who at that time was the Deputy Prime Minister of Egypt. The letter addressed the land problem and aimed to send a company delegation in order to meet with the Deputy Prime Minister of Egypt and the Kuwaiti ambassador to Egypt with the promise to resolve the issue.

On 3/4/2011, a meeting was convened with the Minister of Agriculture and the company delegation. The meeting concluded with the Minister of Agriculture’s request that the company submit a specific proposal to resolve the issue within 48 hours of the meeting’s date. On the same day, the company prepared a letter according to the Minister of Agriculture’s request, which included proposals to resolve the land issue in Al Ayat.

On 7/4/2011, the Secretary General of the Minister of Defense issued a letter to the office of the Chairman of the Central Administration of Affairs of the Minister of Agriculture. The letter reported that the Minister of Defense believed that the Minister of Agriculture must fulfill the proposal of the Egyptian-Kuwaiti company in all of its details. The ministerial group must resolve all investments disputes in the presence of the concerned parties.

On 5/5/2011, a meeting was convened with the Committee Cabinet for Dispute Resolution of the Council of Ministers at the headquarters of the Technical Secretariat of the Committee of the General Authority for Investment. The meeting was attended by the concerned ministries of both parties whereupon the company submitted its proposal and raised the memorandum to the Council of Ministers. The proposal asserted the right of the company to resort to international arbitration in the case that the state does not provide a reduced water rate from the irrigation source. A presidential decree concerning the company’s activities to convert land for reclamation and cultivation stipulated that the company must meet all legal procedures to convert the land for urban activity.

On 7/6/2011, the Council of Minister took the company’s issue to a new committee to resolve the investors’ problems, claiming the Committee for the Settlement of Investment Disputes. This committee was formed in accordance with the Prime Ministerial Decree No. 1009 in 2011, the membership of the Minister of Justice, the Chairman for the General Authority of Investment, the permanent economic advisor of the Prime Minister, and numerous legal consultants.

On 20/6/2011, the first company session with the Committee for the Settlement of Investment Disputes took place. After several meetings, a settlement was reached to preserve roughly 3000 cultivated acres and to continue agriculture activity there, as well as to transfer the remaining area for integrated urban constructional activity.

On 10/10/2011, Dr. Najla al-Ahwani, the economic advisor of the Prime Minister, issued a statement to Dr. Ali Ismail, the Executive Director of the General Authority for Reconstruction Projects and Agricultural Development, which included recommendations for the Committee for the Settlement of Investment Disputes in reference to the session, concluded on 9/26/2011.

On 21/11/2011, the Council of the General Authority for Reconstruction Projects and Agricultural Development convened and recommended approval of the settlement with the company.

On 24/11/2011, the Executive Director of the General Authority, Dr. Ali Ismail, issued an official approval for the body to maintain 3000 cultivated acres for continued agricultural activity and to transfer the remaining area for integrated urban constructional activity, as well as to complete all necessary procedures with the company for the 27,000 acres in Al Ayat.
2010

On 20/12/2010, the company submitted a formal complaint to the both Kuwaiti Foreign Ministry and the Egyptian Foreign Ministry in order to satisfy the stalling Kuwaiti investors.

On 19/12/2010, the Minister of Irrigation and Water Resources issued an official letter to the Ministry of Agriculture addressing the present and future difficulties of providing water from the Nile for the irrigation of the 27,000 acres.
2009

On 30/9/2009, the company received a letter from the President of the General Authority for Urban Planning concerning work of the company’s Millennial City Project. Approximately, 5000 out of the 27,000 acres owned by the company was set at a price of 200 Egyptian pounds per meter, provided that the company waived the rest of the area. This stipulation contradicted the original agreement.
2008

On 16/12/2008, the Minister of Agriculture, in his capacity as the party of the state and as the Board Chairman for the National Center of State Land Use, approved the explanatory memorandum to be presented to the President of the Republic regarding the construction in Al Ayat, thereby submitted with the draft of the presidential decree.
2007

On 3/11/2007, the Prime Minister issued his approval for the transfer of land activity to the integrated urban community. The government also required the company to complete all necessary feasibility studies in order to issue a final approval for the transfer of land activity.
2004

Presidential Decree No. 4 of 2004, regarding the approval of Arab investors and shareholders, stipulates that Arab investors and shareholders shall receive the same treatment as Egyptian investors and shareholders. This applies to the 27,000 acres and was issued in the Official Gazette - Issue 3 on 15/1/2004.
2002

The General Authority for Reconstruction Projects and Agricultural Development agreed on 16/2/2002 to sell the entire area after the company received the required approval from the concerned authorities. The company paid the full price for the land.
2001

On 9/6/2001, the company was granted approval from the ministerial committee on major national projects for this project, provided that the company receives full approval from all concerned authorities regarding the land use.
- The company received all required approvals from the armed forces, the antiquities’ authorities, and quarry and water resource regulators. It is worth mentioning that the approval of the authorities for water resources and irrigation included a special opening of the Giza canal to provide irrigation from the Nile for the 27,000 acres.
1999

The company submitted a proposal to the Ministry of Agriculture of Arab Republic of Egypt in order to study the economic and technical feasibility of cultivating roughly 27,000 acres in Tahma in the center of Al Ayat (Giza Governate).

Egypt-Gulf for Investment & Development

The Egypt – Gulf Company for Investment and Development, S.A.E. (formerly known as the Egyptian – Kuwaiti Company for Investment and Development, S.A.E.) was founded in accordance with the applicable laws of the Arab Republic of Egypt, the provisions of Law No. 8 of 1997 of issuing guarantees and investment incentives, and the provisions of Law No. 159 of 1981 of issuing joint-stock companies with a capital of 3.8 billion Egyptian pounds paid from 381 million Egyptian pounds.

Join our Mailing List

Join our mailing list to be kept abreast of news and developments. We will send regular newsletters which will be emailed to you.
  Main Office

162 Haram St. Intersection of El Arish St. Giza – Egypt

 Connect Us
info@egyptgulfco.com