Investors talk with each other as they monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh – Reuters
CAIRO - 17 December 2017: Saudi investor Hashem el-Mehdar abandoned an arbitration case against Marsa Matruh governorate after the Egyptian government's committee to resolve investment disputes solved the issue.
Based on the settlement contract, Mehdar promised not to take any local or international legal actions against Egypt in the future, a Sunday statement from the Ministry of Investment said.
The contract was signed with Marsa Matruh governorate and it included the completion of his projects in the governorate in the fields of industry and tourism development.
In 2014, Mehdar pursued international arbitration against the government, requesting $937 million in compensation for “harmful” measures taken by Egypt’s government against his business.
After the 25 January Revolution of 2011, Egyptian courts issued verdicts annulling privatization contracts of several Saudi companies, ordering their return to the state.
In response, several Saudi investors restored to international arbitration to sue Egypt, as they had already invested in these projects.
As some of these cases had the possibility of imposing heavy fines that Egypt's state’s treasury could not bear, the Egyptian government has opted to resolve investment disputes internally.
Forming the Egyptian Disputes Settlement Committee in late 2014, which falls directly under the supervision of the Prime Minister, many disputes were tackled.