Damac, Al-Futtaim to Settle Mubarak-Era Land Purchase Disputes With Egypt

(Corrects first paragraph of story published yesterday to show that one of the companies is the Al-Futtaim Group, not the Majid Al Futtaim Group as originally reported.)

An Egyptian government commission approved the settlement of disputes with Dubai’s Damac Properties Co. and Al-Futtaim Group, according to Fayza Aboulnaga, minister of planning and international cooperation.

The initial agreement will be submitted for government approval in the new week, she told reporters in Cairo today. The deal provides for the two companies to fund the difference between prices they had paid for land in contracts with the previous administration of ousted President Hosni Mubarak and the value deemed fair by the current authorities, she said.

The Egyptian government is trying to settle disputes with companies over contracts signed with the Mubarak administration in out-of-court reconciliations. Damac had filed an arbitration lawsuit in Washington in May against Egypt after the government seized land purchased in 2006 and sentenced its chairman to five years of hard labor.

To contact the reporter on this story: Abdel Latif Wahba in Cairo at alatifwahba@bloomberg.net

To contact the editor responsible for this story: Dick Schumacher at dschumacher@bloomberg.net

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