Developers object to jail punishment in new law in the making
LEGISLATION WATCH- Developers object to jail terms in draft real estate development law: Real estate developers have voiced objections to a bill the House of Representatives is drafting that could see developers who miss delivery deadlines face fines and prison time, Al Mal reports. Tarek Shoukry, head of the Federation of Egyptian Industries’ real estate development division, said missed deadlines are sometimes the result of unanticipated factors, including rising costs, that force developers to revise construction timelines. Hussein Sabbour, chairman of Al Ahly for Real Estate Development, also called for the bill to be withdrawn until the Housing Ministry completes drafting its own legislation.
Background: The parliament has been working out a new law that would regulate the real estate industry by clamping down on wildcat developers, creating a state-sponsored federation for developers, and set up a fund to hedge against sector-related risks.