Egypt court suspends verdict cancelling Porto Venice land deal

Egypt's administrative court suspended on Wednesday the annulment of the allocation of 3 million square metres of land to the touristic projects company Porto Venice for development in the Red Sea resort of Ain Sokhna.

The final verdict awaits the ruling of the Supreme Constitutional Court on law no. 32 for year 2014 which immunises state contracts from third party challenges.

Porto Venice for Touristic Development – owned by businessman Hisham Talaat Moustafa – was allocated by direct order from the Tourism Development Authority (TDA) 3.156 million square metres of land in the Red Sea city of Ain Sokhna at a price of LE400 million ($56 million).

Hamdy El-Fakharany, an ex-parliamentarian, challenged the prime minister, tourism minister and the head of the TDA for the allocation of land through direct order as it contradicts law no. 89 for year 1998 stipulating that land is to be allocated through auctions only.