President Abdel Fattah El-Sisi issued Resolution No. 128 of 2022, excluding Sharm El Sheikh, Dahab, and the Gulf of Aqaba tourism sector in South Sinai Governorate, from being subject to all provisions of the Integrated Development Law in the Sinai Peninsula, issued by Decree-Law No. 14 of 2012.
The articles of the decision published in the Official Gazette were as follows:
(Article One)
The cities of Sharm el-Sheikh and Dahab and the Gulf of Aqaba tourism sector in South Sinai Governorate, in accordance with the cadastral plates and coordinates accompanying this decision, are excluded from being subject to all provisions of the aforementioned Sinai Peninsula Integrated Development Law, while adhering to the provisions contained in this decision.
(second subject)
Ownership of land and real estate built in the areas subject to the provisions of this resolution shall be for natural persons holding Egyptian nationality and for Egyptian legal persons whose capital is entirely owned by Egyptians.
Without prejudice to the acquired rights, the disposal by the state authorities of lands or built real estate owned by the state is a private property in the aforementioned areas for individuals and private legal persons, with the usufruct system so that the total period of the usufruct does not exceed 75 years, with the right of the disposer to own the facilities Which he builds on the usufructuary land for the duration of the usufruct period. It is permissible to dispose of the buildings built without the lands built on them by sale, all in accordance with the model secured contracts accompanying this decision.
In all cases, it is not permissible to own or allocate lands, real estate, or units for the purpose of residence, granting usufruct, or making any real or in-kind transactions with them, whether for Egyptians or foreigners, except after obtaining the approval of the Ministries of Defense, Interior and General Intelligence, and any contract is absolutely null and void. It is concluded otherwise, and for everyone concerned to adhere to the invalidity or to request a ruling on it, the court shall decide it on its own.
(Article Three)
The state authorities shall continue to consider requests for ownership or use of squatters prior to the date of enforcement of the provisions of the aforementioned law on integrated development in the Sinai Peninsula, for the lands they built, reclaimed and cultivated, after the approval of the Ministries of Defense, Interior, General Intelligence and the National Authority for the Development of the Sinai Peninsula. According to the provisions of the aforementioned Prime Minister’s Resolution No. 48 of 2017.
(Article Four)
The investment or development project for non-Egyptians, in the areas subject to the provisions of this resolution, must take the form of an Egyptian joint stock company.
No change in the names of the founders, the ratios of the partners or their shares, or the amendment of some articles of contracts, the articles of association, the form of companies, or the offering of securities and public and private subscriptions, except after obtaining the approvals of the Ministry of Defense, the Ministry of Interior, General Intelligence, the General Authority for Investment and Free Zones, or The Financial Supervisory Authority, as the case may be.
The trading of securities listed on the Stock Exchange for the companies referred to in this article is subject to the provisions of the Capital Market Law and its Executive Regulations referred to.
(Article Five)
The National Authority for the Development of the Sinai Peninsula shall refer all requests related to lands, real estate, projects and companies within the areas subject to the provisions of this decision as they are to the Governorate of South Sinai, the state or jurisdiction authorities, the General Authority for Investment and Free Zones, or the General Authority for Financial Supervision, as the case may be. The provisions stipulated in this resolution, in coordination with the aforementioned concerned authorities.
Companies whose activities in the Sinai Peninsula are restricted to the areas subject to the provisions of this resolution are subject to the provisions of this resolution, provided that their articles of association or articles of incorporation are amended in accordance with the laws regulating this, after the approval of the Ministries of Interior Defense and General Intelligence exclusively.
(Article Six)
The aforementioned Presidential Decree No. 28 of 2021 shall be repealed, as shall any provision that contradicts the provisions of this resolution.
(Article Seven) This decision, its explanatory memorandum, cadastral plates, coordinate sheets, and models of model contracts accompanying it shall be published in the Official Gazette, and shall be effective as of 1/4/2022.