Back to the complete issue
Tuesday, 23 June 2020

Egypt looks to reach financial settlement with Saudi investor over Omar Effendi sale dispute

DISPUTE WATCH- Gov’t looks to reach financial settlement with Saudi investor over Omar Effendi sale dispute: The Holding Company for Construction and Development (HCCD) has proposed a financial settlement to Saudi’s Anwal United Trading Company in its dispute over the sale of HCCD subsidiary Omar Effendi, HCCD Chairman Hisham Aboul Atta tells Masrawy. HCCD is currently waiting on Anwal’s decision on the proposed settlement, Aboul Atta said, without disclosing details on the sum or terms offered.

Background: The state had agreed to sell a 90% stake in Omar Effendi to Anwal in 2006, only to have the Administrative Court issue a ruling in 2011 rolling back the stake sale. The ruling also scrapped other agreements the state had reached with investors, including one to partially privatize Nile Cotton Ginning. The decision drew Egypt into international arbitration entanglements, including a dispute with the World Bank’s International Finance Corporation (IFC) over a USD 40 mn loan Omar Effendi signed under the Saudi company’s management in 2007. Anwal stopped repaying the loan after the Administrative Court ruling. Omar Effendi eventually signed an agreement with the IFC in 2018 to settle the dispute.

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.