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Formation of the Board of Directors

Formation of the Board of Directors of the Sinai Development Agency
In January of this year, the Supreme Council for the Armed Forces (“SCAF”) issued Decree-Law No. 14 of 2012 providing for a new legal framework for investing in Sinai (the “Law”),[1] which included:
  • Determining the conditions and restrictions on Egyptian and foreign ownership of land in Sinai.
  • Providing guidelines for the right of usufruct on land.
  • Establishing a new governmental agency by the name of “the National Agency for the Development of the Sinai Peninsula” (“Agency”).
The Law further stated that the new Agency will have the public legal personality and be part of the Prime Minister’s Office, that it shall have a Board of Directors composed of the Prime Minister and representatives of the Ministries of Defense, Agriculture, Water Resources, Housing, Industry, Tourism, Petroleum, Transport, Finance, Planning, Electricity, Interior, Communication, and of the North and South Sinai Governorates, the General Authority for Investment, the General Intelligence, the Local Councils of North and South Sinai Governorates, in addition to three investors in Sinai. The Law also stated that the Agency’s Board is to be appointed for three years, and shall have the powers to undertake studies and strategic planning for Sinai, promotion, propose laws and regulations, and follow up on the implementation of investments in the Peninsula, as well as issue and withdraw permits and provide various services related thereto, and in general perform the role of regulator in Sinai. In application of this Law, the Prime Minister issued decree No. 600 of 2012 with the formation of the Agency’s Board,[2] to be headed by General Mohamed Shawky Rashwan, and naming the representatives of the various bodies on the Board. But in spite of the fact that naming the head of the Agency and the names of its Board members is an important step in allowing it to start its operations, the problem will remain – as it was when the Law was passed in January of this year – that there is no legal framework that provides the Agency with the powers and authorities that will allow it to have an effect on the development of Sinai and in promoting investment therein. The next step should be reconsidering the whole framework for investment in Sinai and provide the new Agency with the necessary powers to be effective.   [1] SCAF Decree-Law No. 14/2012 on the Development of Sinai, Egyptian Gazette, Issue No. 3 (cont.), 19 January 2012. [2] Prime Minister’s Decree No. 600/2012 forming the Board of Directors of the National Agency for the Development of the Sinai Peninsula, Official Gazette, Issue No. 22 (bis) (b), 4 June 2012.
In January of this year, the Supreme Council for the Armed Forces (“SCAF”) issued Decree-Law No. 14 of 2012 providing for a new legal framework for investing in Sinai (the “Law”),[1] which included:
  • Determining the conditions and restrictions on Egyptian and foreign ownership of land in Sinai.
  • Providing guidelines for the right of usufruct on land.
  • Establishing a new governmental agency by the name of “the National Agency for the Development of the Sinai Peninsula” (“Agency”).
The Law further stated that the new Agency will have the public legal personality and be part of the Prime Minister’s Office, that it shall have a Board of Directors composed of the Prime Minister and representatives of the Ministries of Defense, Agriculture, Water Resources, Housing, Industry, Tourism, Petroleum, Transport, Finance, Planning, Electricity, Interior, Communication, and of the North and South Sinai Governorates, the General Authority for Investment, the General Intelligence, the Local Councils of North and South Sinai Governorates, in addition to three investors in Sinai. The Law also stated that the Agency’s Board is to be appointed for three years, and shall have the powers to undertake studies and strategic planning for Sinai, promotion, propose laws and regulations, and follow up on the implementation of investments in the Peninsula, as well as issue and withdraw permits and provide various services related thereto, and in general perform the role of regulator in Sinai. In application of this Law, the Prime Minister issued decree No. 600 of 2012 with the formation of the Agency’s Board,[2] to be headed by General Mohamed Shawky Rashwan, and naming the representatives of the various bodies on the Board. But in spite of the fact that naming the head of the Agency and the names of its Board members is an important step in allowing it to start its operations, the problem will remain – as it was when the Law was passed in January of this year – that there is no legal framework that provides the Agency with the powers and authorities that will allow it to have an effect on the development of Sinai and in promoting investment therein. The next step should be reconsidering the whole framework for investment in Sinai and provide the new Agency with the necessary powers to be effective.   [1] SCAF Decree-Law No. 14/2012 on the Development of Sinai, Egyptian Gazette, Issue No. 3 (cont.), 19 January 2012. [2] Prime Minister’s Decree No. 600/2012 forming the Board of Directors of the National Agency for the Development of the Sinai Peninsula, Official Gazette, Issue No. 22 (bis) (b), 4 June 2012.