Back to the complete issue
Tuesday, 29 September 2020

Contractors can resume constructions on buildings up to four storeys

Construction ban partially relaxed: Contractors and real estate developers will now be permitted to resume construction on buildings that are no higher than four storeys after the government yesterday relaxed some of the construction restrictions introduced in May. The exemption applies only to companies that have already obtained the required building permits, Prime Minister Moustafa Madbouly said following a meeting with local governors and the local development minister. The decision comes a day after President Abdel Fattah El Sisi called on the government to end the six-month ban and introduce new building regulations as soon as possible.

Steel companies are complaining: The ban has caused demand for steel billets and building materials to plummet 40-50%, an industry figure tells the local press.

Background: The government imposed in May a six-month ban on construction permits in urban centers, including Greater Cairo and Alexandria, after President Abdel Fattah El Sisi ordered the government to halt construction in response to ongoing building code violations. All ongoing construction of private housing was also halted until owners present plans that meet legal requirements, such as allowing for enough parking spots. The decision came after parliament approved in March the Unified Building Code, a long-awaited piece of legislation that gave the government sharper teeth to clamp down on illegal construction

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. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank 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; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.