2006年-世界发展银行全球_Egypt_Public_Land_Management_Strategy___Volume_2_Background_Notes_on_Access_to_Public_Land_by_Investment_Sector--Industry_Tourism_Agriculture_and_Real_Estate_Development_102页_1mb

Summary of Egypt Public Land Management Strategy: Volume II - Background Notes on Access to Public Land by Investment Sector

Core Content

This document outlines the Egypt Public Land Management Strategy, focusing on the access to and development of public land for industrial, tourism, agriculture, and real estate investment sectors. It provides an in-depth analysis of the institutional and regulatory frameworks, procedures, incentives, and constraints faced by investors in these sectors. The report is based on interviews with officials, feedback from investors, and legal and institutional analysis.

Main Sectors and Key Points

1. Industrial Investment

• Institutional Framework:

  • Special zones for industrial development are designated under the Urban Planning Law No. 3 of 1982.
  • These zones are categorized as public free zones (GAFI), industrial zones in new urban communities (NUCA), inland industrial zones (Governorates), and Special Economic Zones (SEZ).
  • The General Authority for Industrial Development (GAID) was established in 2005 to consolidate control over industrial estates, both in new communities and governorates.

• Location Options:

  • Public Free Zones (GAFI): Seven zones established, including Alexandria, Nasr City, Port Said, Suez, Ismailia, Damietta, and Media City. Three more are under implementation.
  • Industrial Zones in New Urban Communities (NUCA): 15 out of 20 new cities have industrial zones.
  • Inland Industrial Zones: Located beyond 2 km from the city cordon, managed by the respective governorates.
  • Special Economic Zones (SEZ): Regulated by Law No. 83 of 2002, established by Presidential decree, and managed by independent SEZ authorities.

• Incentives:

  • Tax holidays for 5, 10, or 20 years depending on location (Old Valley, New Valley, or industrial zones in new communities).
  • Single unified import duty (5%) and exemption from stamp duty, notarization, and registration fees for 5 years.
  • Free zones offer exemption from all taxes and customs.

• Constraints:

  • Legal restrictions on developing agricultural land for agro-industrial use.
  • Complex procedures and lack of harmonization among different entities.
  • Difficulty in obtaining change of use permits and construction approvals.
  • Environmental and planning regulations that may delay or complicate development.

• Procedures:

  • Obtaining a building permit and utility connections is a key part of the process.
  • The Takhssiss procedure is used to resolve land disputes and ensure legal ownership.
  • The State Land Authority (SLA) and General Authority for Reconstruction Projects and Agricultural Development (GARPAD) are involved in land allocation and reclamation.

• Key Findings:

  • The process of accessing public land for industrial investment is fragmented and complex due to the involvement of multiple entities.
  • The establishment of GAID aimed to streamline this process.
  • Tax incentives have largely been cancelled under Law No. 91 of 2005, affecting existing projects.
  • Investors often face delays and legal challenges in registering their land and facilities.

2. Tourism Investment

• Institutional Framework:

  • The Tourism Development Authority (TDA) and Egyptian Environmental Affairs Agency (EEAA) are the main regulatory bodies.
  • There are different legal frameworks for tourism development within and outside the Zimam (surveys and tax records).

• Location Options:

  • Public land outside Zimam: Managed by TDA, often in coastal areas or special economic zones.
  • Public land within Zimam: Subject to different procedures and regulations.

• Procedures:

  • Building permits and infrastructure services are required.
  • Coordination between TDA and EEAA is often lacking, causing delays and disputes.
  • Environmental regulations can significantly affect project viability.

• Key Findings:

  • Tourism projects face institutional and regulatory complexities, especially in areas where environmental and urban planning laws intersect.
  • Projects in the North West Suez Gulf and Nabq, South Sinai are examples of tourism development efforts.
  • Coordination issues between agencies are a recurring problem, leading to inefficiencies and loss of investor confidence.

3. Real Estate Investment

• Institutional Framework:

  • The New Urban Communities Authority (NUCA) and State Land Authority (SLA) manage public land for real estate development.
  • The Regional Economic Development Authority (REDA) also plays a role in certain areas.

• Location Options:

  • Outside Zimam: Typically in new urban communities.
  • Inside Zimam: In existing cities and governorates, requiring different procedures and approvals.

• Procedures:

  • Building permits and land development regulations vary by location.
  • Land development outside Zimam involves more straightforward procedures, while within Zimam requires navigating a complex institutional landscape.
  • The SEZ Authority manages land in special economic zones, offering certain incentives.

• Key Findings:

  • Real estate development in new urban communities is more streamlined, but within existing cities, it is subject to strict regulations.
  • The Shahr Akary (land and property registry) and Saha wa Nafaz (low-cost land dispute resolution) are used to manage land ownership and disputes.
  • Projects like Madinaty demonstrate the potential of real estate development through partnerships.

4. Agriculture and Land Reclamation Investment

• Institutional Framework:

  • The Ministry of Agriculture and Land Reclamation (MALR) and Agrarian Reform Authority (ARA) are central to managing agricultural land and reclamation efforts.
  • GARPAD is responsible for reclamation projects.

• Location Options:

  • Agricultural land outside urban boundaries is protected from urban development.
  • Land designated for reclamation is available for agricultural and agro-industrial use.
  • Zimam boundaries are key to determining land use and tax applicability.

• Procedures:

  • Land reclamation is a long-term process, often taking 8 years.
  • The Takhssiss procedure is used to formalize land ownership.
  • Investors must navigate a complex web of approvals and legal frameworks.

• Key Findings:

  • Agricultural land is highly restricted for industrial use, requiring large areas to be developed.
  • Land reclamation is a major strategy for expanding agricultural capacity, but the process is slow and bureaucratic.
  • The National Development Plan 2017 outlines reclamation goals, but implementation is lagging.
  • Investors often face legal and procedural challenges in acquiring and developing agricultural land.

Key Information

• Currency: LE (Egyptian Pound) = US$0.17
• Zimam: A boundary of surveyed agricultural land included in the Real Estate Tax Department’s registry.
• Takhssiss: A legal procedure to formalize land ownership and resolve disputes.
• GAID: Established in 2005 to consolidate control over industrial estates and improve access for investors.
• SEZ: Special Economic Zones regulated by Law No. 83 of 2002, managed by independent authorities.
• NUCA: New Urban Communities Authority, responsible for managing real estate development in new towns.
• SLA: State Land Authority, responsible for land management and allocation.
• GARPAD: General Authority for Reconstruction Projects and Agricultural Development, involved in reclamation projects.
• ARA: Agrarian Reform Authority, focuses on land reform and reclamation.
• Legal Challenges: Inconsistent procedures, lack of coordination, and fragmented institutional control complicate land access and development across sectors.
• Investor Experience: Many investors report difficulties in accessing land, especially in agriculture and agro-industry, due to legal and administrative hurdles.

Conclusions and Recommendations

• Conclusions:

  • The access to public land for investment is a complex and fragmented process, particularly in the industrial and agricultural sectors.
  • Legal and institutional inconsistencies create obstacles for investors.
  • The establishment of GAID and the development of SEZs are steps toward improving land access, but challenges remain.
  • The Zimam system and Takhssiss procedure are critical for land development and ownership formalization.

• Recommendations:

  • Harmonize procedures and legal frameworks across different sectors and locations.
  • Improve coordination between relevant government agencies.
  • Streamline the process for land registration and dispute resolution.
  • Enhance transparency and provide clear information to investors on land availability and costs.
  • Accelerate land reclamation efforts to support agricultural and agro-industrial development.