MPs greenlight selling desert plots to foreigners in heated session: It was an eventful session at the House yesterday as MPs gave their final go-ahead on a proposed amendment to the law regulating ownership of desert lands. The proposed law allows foreign nationals to buy and own land in the country’s spacious desert areas and gives them rights to own more than 51% in companies that invest in desert land developments.

All in favor, say aye: Mostaqbal Watan MPs were for amending the law as it works in line with the government’s plans to ramp up foreign investments into the country — and we have no shortage of unused desert lands.

All those opposed, say nay: Some MPs were strongly against the amendment, citing national security concerns. MP Diaa Eddin Dawoud said the law could be used by “malicious foreigners” to own large areas of land, which could jeopardize our national security. Tagammu’s Atef El Maghawry told MPs that the amendment to desert ownership laws could “open the door for foreigners to own 90% of our land.”

Calming fears: Addressing the MPs’ concerns, Parliamentary Affairs Minister Alaa Fouad said the law mandates that all purchase requests from foreign investors must get a security approval first. Fouad also stressed that ownership of land in Sinai is subject to a separate law, which makes it impossible for foreigners to own land in the peninsula.

What’s next? The amendment will go into full effect once it gets the presidential seal and is published in the Official Gazette.

Also in the house:

  • Move over LIBOR: MPs greenlit an agreement with the European Bank for Reconstruction and Development (EBRD) to change to the secured Overnight Financing Rate (SOFR) when inking agreements with the lender, instead of the “more costly to borrowers” London Interbank Offered Rate (LIBOR).
  • Econ Committee nods through two wheat agreements: The House Economic Affairs committee approved a USD 500 mn agreement with Abu Dhabi Exports Office (ADEX) to finance our wheat imports and a EUR 56.7 mn grant from the French Agency for Development (AFD) to expand our wheat silos capacity.
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