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Tuesday, 22 March 2022

Gov’t settles cement dispute with Vicat

French cement producer Vicat Group and the Egyptian government have reached a final settlement in a dispute over ownership of its Sinai-based subsidiary. An agreement was signed yesterday by Vicat CEO Guy Sidos and International Cooperation Minister Rania Al Mashat, the cabinet said in a statement. No details on the settlement were disclosed.

Background: Vicat filed an arbitration case against the government last year at the International Center for Settlement of Investment Disputes, alleging that it was trying to force it to sell its majority stake in Sinai Cement. The company said that there was a “a difference in interpretation of the legislation on foreign interests in the Sinai region” in its 2021 financial report (pdf). Ownership rules in Sinai are more restrictive than in other areas of the country, and prevent foreigners from owning land.

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