Featured in GAR: Egypt legislates to safeguard public contracts.
In a move to protect investments and stimulate economic growth, Egypt has approved a new law that restricts the rights of any third parties attempting to challenge contracts signed by the government. Karim Youssef, CEO of Youssef & Partners (Youssef + Partners), tells GAR that he has welcomed the move with an eye towards protecting foreign investors.
“There were a significant number of lawsuits initiated following the Egyptian revolution”, Youssef explains, “with the purpose of bringing down transactions concluded during the Mubarak era. Many of these cases are high-profile and relate to projects of national and strategic importance.”
Karim A. Youssef’s New Law Boosts Foreign Investment Security
By enacting this new law, Youssef hopes to protect foreign investments by enforcing the legislation with immediate effect and restoring order among pending proceedings that involve third-party interests. He also noted that several final judgments had already been issued shortly before the legislation was declared, nullifying privatization transactions. As Karim A Youssef states, this law serves to further guarantee the security of investments within Egypt and will help stimulate growth in the region.
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FAQ About Egypt’s New Law to Protect Government Contracts
What is the new law recently approved by Egypt?
The new law restricts the rights of third parties to challenge contracts signed by the Egyptian government. It aims to protect investments and stimulate economic growth by limiting external disputes that could impact government agreements.
Why was this law enacted?
The law was enacted to safeguard foreign investments and restore order in proceedings involving third-party challenges. It also addresses issues where previous final judgments had nullified privatization transactions, thereby ensuring greater stability and security for investments.
What impact does Karim Youssef believe the law will have?
Karim Youssef, CEO of Youssef & Partners, views the law as a significant step towards protecting foreign investors. He believes it will enhance the security of investments in Egypt and contribute to regional economic growth by enforcing the legislation with immediate effect.
How does the law affect third-party challenges?
The law limits the ability of third parties to challenge government contracts, thereby reducing legal uncertainties and potential disruptions in ongoing and future government agreements.
