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Monday, 30 May 2016

Is Qatari Diar filing arbitration case against Egypt to back out of EGP 1 bn project?

Qatari Diar may be planning to file an arbitration case against Egypt to back out of an EGP 1 bn tourism investment in Hurghada, according to Al Shorouk. Under an agreement signed with the Tourism Development Authority back in 2006, Diar was to establish a company to develop a 30 mn sqm resort in Hurghada with a paid up capital of EGP 1 bn, to which it had only paid up EGP 293 mn. Another Egyptian agency subsequently laid claim to 2 mn sqm of the project and demanded the company pay for that land at a higher rate than agreed upon with the TDA. With the agreement stalled, Diar is looking to a way out or possible compensation for the land. Al Shorouk, which is framing the piece as a continuation of hostile Qatari policies towards Egypt, alleges that the company is using an offshore investment vehicle in Gibraltar to sell off assets in the company it established in Egypt to Qatari investors.

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