Egyptian army refuses to loosen grip on land assets

Egyptian army refuses to loosen grip on land assets
Analysis: Army reportedly rejects draft law that would encroach on its sweeping powers over the regulation and licensing of land use in Egypt.
2 min read
09 February, 2015
A US business delegation meets Egyptian officials in Cairo in November 2014 [Anadolu]
The Egyptian armed forces have reportedly vetoed several articles in a new unified investment law intended to cut bureaucracy and encourage investment.

Military brass favour an amendment to the existing law, said a ministry of industry official, who requested anonymity - as he was not authorised to speak to the press.

"The unified investment law was rejected by the army, and by the committees tasked with granting licences and approvals related to land," said the unnamed official.

"The army considers land an additional source of income, an asset they are not giving up... The new investment law faced heavy resistance."


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The army considers land an additional source of income, an asset they are not giving up.
- Ministry of industry official

Large areas of land in Egypt are subject to army control - and, as such, army approval is required to offer land for development.

However, the proposed new investment law, a draft of which has been seen by al-Araby, appears to cut the army out of the process.

"Lands proposed for investment are to be reviewed by the central committee for investment while following the guidelines of the unified framework, and this will involve commissioners from the various bodies with jurisdiction over land," the proposed law states.

It would also oblige land-controlling groups to submit maps to the committee of all territory under their jurisdiction on which development has been proposed. A database would then be created to document prices, amenities, facilities and sewerage systems.

The Egyptian army controls and has influence over vast areas of Egypt's economy.

The Egyptian government is attempting to attract foreign investment, and has held conferences in Sharm el-Sheikh to raise interest in the Egyptian economy. Earlier this year, the UK sent its largest trade delegation in a decade to discuss investment in the country.

However, many fear that the army's grip on the economy will stifle economic development.

The industry ministry official said the World Bank had urged the government to press ahead with a programme of privatising businesses by 2020, and of ending subsidies on energy and other goods.

According to the official, state-owned companies from the business sector remain a point of contention between the government and the World Bank as the bank pushes for privatisation to eliminate competition between state and the private sector.

However, the official added, "I do not expect an imminent clash between the army's involvement in the economy and the World Bank's plans in the coming period."


This is an edited translation from our Arabic edition.