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Tuesday, 28 June 2016

Tiran and Sanafir court ruling unlikely to impact signed MoUs, say officials

Some 17 agreements and MoUs signed with Saudi Arabia are unlikely to be impacted following an initial court ruling rejecting the handover of Tiran and Sanafir to Saudi Arabia, Al Mal reported. The paper has extensive coverage of various sectors, surveying expert and official opinions on the agreements and alternative solutions for worst-case scenarios should they fall through.

  • Tax Authority sources say the prevention of dual taxation agreement signed between Egypt and Saudi Arabia will likely be unaffected.
  • Oil Ministry officials say the agreement with Aramco to provide Egypt with petroleum products is binding and cannot be broken, while the SUMED–Aramco agreement to use Egyptian storage capacity for Saudi crude is still just an MoU and is not binding. If the agreement were to fall apart it would present no problem to Egypt, added the officials.
  • An Electricity Ministry official believes electricity projects will be unaffected as most of them are already under execution. The Dairut project is in the negotiation phase with Saudi’s ACWA Power in the running, but will not be affected as Saudi has a large interest in the project, sources at the Egyptian Electricity Holding Company said.
  • Head of the services and follow-up department at the Agriculture Ministry Ahmed Abou El Yazeid said agricultural projects are unlikely to be affected but projects can be issued to other investors, such as with the yet-to-materialize poultry farm projects, said General Organization for Veterinary Service Chief Ibrahim Mahrous.

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