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.”
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.