Why Did Egyptian Parliament Amend Foreign Land Ownership Law in Sinai?

by Rachel
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North Sinai—The Egyptian Parliament gave its final approval on Wednesday to amend the Desert Land Law no. 143 of 1981, aimed at permitting foreign investors to own desert lands in Egypt without any restrictions. The amendment is justified by the government's goal to increase foreign investment and develop the desert regions.

The bill replaces the text in paragraphs two of articles 11 and 12 of the Desert Land Law, stipulating that "other than cases where the investor acquires the necessary lands to carry out their activities, Egyptian ownership must not be less than 51% of the company's capital, and individual ownership must not exceed 20%, while the lands of cooperative associations and expired companies may not transfer to non-Egyptians."

Widespread Uproar

The decision has caused widespread uproar among the citizens of North Sinai, who were displaced during what the Egyptian government labels as a "war on terror" across extensive areas of the border province and have been unable to return to their lands.

Suleiman Ayash (a pseudonym), a resident from the border city of Rafah, said, "I left my land, my home, and all I own in the hope of returning after the eradication of terrorism, but it seems that hope is now cut off, and all I have left from the world's wreckage are the clothes I am wearing."

He added, "I was living on the hope of returning, even without official ownership documents from the state, but the decisions issued by the government daily completely cut off my hopes, and those who pay more will replace us."

Egyptian parliamentarian Mohamed El-Fayoumi, head of the Housing Committee in the House of Representatives, stated, "Egyptian security is in safe hands under the leadership of President Abdel Fattah al-Sisi, and Egypt of 1982 is not like Egypt of 2024." He believes Law No. 14 of 2012 already sets strict rules regarding land ownership in Sinai, "and we all are aware of the plots against Sinai; it's impossible that legislation regarding ownership there can be issued."

Mohammed Jumaa'an, another North Sinai native, told Al Jazeera Net, "The government believes it has the right to rent, own, or sell our lands, where we grew up, to investors who paid their price in advance. Anyone among us demanding to return to their land or to own it gets arrested immediately."

He further commented, "They talk about Sinai's lands as if they were surplus to requirements, while we demand the government grant us ownership of our lands for cultivation, reclamation, and settlement to protect our rights, which we have to beg for."

On January 3, 2024, the House of Representatives approved the amendment to the [#Desert_Land_Law], which allows for the first time the purchase and ownership of lands by foreigners in desert areas.

The amendments raised concerns that they might open the door for foreign ownership of lands in Sinai, especially amid increasing media discussion…

Wavering Decisions

Hassan Salamah Aliyan, a 28-year-old resident of Bir al-Abd, says life in Sinai is generally difficult, but it's impossible with the fluctuating daily government decisions.

Aliyan expressed his concerns about his uncertain future as he owns and cultivates seasonal vegetables on his land and does not know where things will end up.

"We don't have any say in our fate, but given the tough economic situation and the reality of our lives, we will just become low-paid laborers for the investors who will take over and own our land against our will," he continued.

Slim Awad, a resident of Sheikh Zuwaid, fears that the law facilitating foreign land ownership in Egypt, especially in Sinai, "is a prelude to the displacement and settlement of Gaza Strip inhabitants in part of it, and selling the other part to the highest bidder."

Awad questions incredulously, "How can a foreigner own land that we have inherited for generations that we can't prove is ours? I've seen investors in Gulf attire inspecting our lands two years ago—they surely paid for them in advance, and there's no one to lament for us, the landowners."

Meanwhile, Amr Qatami, a member of the Egyptian Parliament and Secretary of the Economic Affairs Committee, believes that granting foreigners the right to own land for investment is an essential step towards ensuring security for the investor and is in line with the constitution, which commits the Egyptian economy to standards of transparency, governance, and support for competitiveness.

Instead of restoring them to their land… the army has subjected them to a military trial and arrested their tribe's sheikh.
Sinai Foundation demands the Egyptian authorities release the detainees in case no. 80 of 2023, concerning the "Right of Return" protests, including the prominent Sinai sheikh "Saber al-Sayyah".

Economic expert Ahmed Ismail says the decision is not new and activates existing decisions that are regularly amended, emphasizing that all lands in Egypt are at the disposal of the armed forces.

The economic expert also voices his concern about a single entity controlling the fates of Egyptian citizens and whether this amendment will lessen the budget deficit or contribute significant cash surpluses to bolster economic development.

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