Back to the complete issue
Tuesday, 14 January 2020

Qatari Diar offers olive branch to litigious City Gate clients

Qatari Diar offers City Gate customers quid pro quo: Qatari Diar has offered amended contract terms to clients of its City Gate project in exchange for them dropping lawsuits against the company, according to Al Shorouk. A number of Qatari Diar’s customers began legal proceedings after the company — which has long looked for an exit from the New Cairo development — tried to terminate the contracts and return to customers their installments.

Under the amended contracts, Qatari Diar will need to begin constructing the units within the next three years and ensure that they take no longer than three years to be delivered. The company would be able to subcontract the construction work or sell the project to another company, provided the units are completed on time. Development in the City Gate project was halted back in 2016 when armed men took over the land plot.

Qatari Diar may be close to solving some of its problems: Local media reported last October that Naguib Sawiris’ Ora Developers was in “advanced talks” to acquire a 51% stake in the project for USD 800 mn, an acquisition that would help resolve Qatari Diar’s four-year legal row with the New Urban Communities Authority and dispute with the government — both caused by the Doha-based company’s failure to complete the project.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.