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Nour & Selim in association with Al Tamimi & Company knows more than just the law. We pride ourselves on understanding the business environment in which we operate, benefiting the clients we work with. We have the knowledge, expertise and cultural awareness to ensure that our clients are at the forefront of doing business in Egypt and the Middle East.

Doing Business in Egypt and the Middle East? So are we...

17 Offices I 9 Countries I 330 Lawyers

www.tamimi.com

Law Today.indd 2 9/7/16 8:25 AM

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EDITOR’SNOTE

A well prepared law practitioner has a mind not to be reckoned with, life can be difficult and without guidance, it can prove to be impossible. Law practitioners should not underestimate the privilege bestowed upon them once they have embarked on the path of learning and practicing one of the most important social sciences mankind has delivered, it is the guide to society as we know it.

Mankind always seeks to grow and expand. With the increase in population comes the need for more resources, space, and homes; which leads us to one of the most required commodities in our age; property.

In its third issue, The Law Today chose to tackle this phenomenal commodity; real estate properties. We hope you enjoy this issue as much as we enjoyed bringing it to you and we’d like to thank all those who participated in this issue, with special thanks to Miss Sueellen Hassouna for her guidance and time in supporting the magazine.

MEET THE TEAMLAW TODAY TEAM

Khaled Radwan CEO Mahmoud Shireen Content DirectorAhmed Elsoukkary HR & Production Director Mustafa Abdelaziz WriterMoaaz Abdurrahman WriterAhmed Raafat PhotographerSalma El Serafy Photographer

Sahar Abdelrahman Editor-in-chiefMohab Said Business Development DirectorAbdelrahman Hammad Art Director Rahma Mahmoud Business Development Abdullah Magdy Business DevelopmentAhmed Fouad Photographer

EVENTS CALENDER

2nd Annual Leasing Conference “New insights to stimulate financing instruments”

11 October (Tuesday), Four Seasons Nile Plaza Hotel, Plaza Ballroom, Cairo.

Global Islamic Economy Summit

11-12 October (Tuesday-Wednesday), Madinat Jumeirah, Dubai.

The Marketing Kingdom Cairo 2 event

26-27 October (Wednesday-Thursday), Cairo.

Bank of America Merrill Lynch MENA 2016 Conference

14-16 November (Monday-Wednesday), The Ritz Carlton, Dubai International Financial Centre, Dubai.

2016 Cairo ICT

27 November (Sunday), Cairo International Convention Centre.

The Role of State Courts in International Arbitration

19-20 November (Saturday-Sunday), HYATT REGENCY, Sharm El Sheikh, Egypt.

Solar-Tec exhibition

04-06 December (Sunday-Tuesday), Cairo International Convention Centre.

Electricx exhibition

04-06 December (Sunday-Tuesday), Cairo International Convention Centre.

Citi’s 2016 Global Healthcare Conference

07-08 December, London, UK.

RiseUp Summit

09-11 2016 December, Greek Campus AUC, Cairo, Egypt

Projex Africa and MS Marmomacc + Samoter Africa

10-13 December (Saturday-Tuesday), Cairo International Convention Centre.

The Middle East Fire, Security & Safety Exhibition and Conference (MEFSEC)

11-13 December (Sunday-Tuesday), Cairo International Convention Centre, Cairo.

Amwal Al Ghad’s top 50 most influential women in Egypt women forum

13 December (Tuesday), Four Seasons Nile Plaza Hotel, Cairo.

Oct

Nov

Dec

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1 Legal News Round up• National News

• International News

2 Law In Focus

CONTENTS

• Real estate consultancy

• Zizinia el mostakbal

• Creating living landmarks

3 Professional Development

4 Lifestyle

• A fresh look in the real estate

market

• B2B real estate

• Lawyers in the real estate market

• Public prosecution to challenge

arbitral awards

• Real estate in-house counsel

• Citystars properties in-house

counsel

• Bin Suwaidan Advocates & Legal

Consultants

• Financial modelling for law firms

• Main features of legal documents

• Dress guide for interviews

• Breeze a taste of Lebanon

• Why drive a Renault Kadjar?

• Staying healthy in the office

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LEGAL NEWS ROUND UPLEGAL NEWS ROUND UP- National News- International News

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Legislation

The Egyptian parliament passes the new Value Added Tax law; the baseline VAT rate has been set at 13% for the first year and will increase to 14% in year two. It should be noted that the VAT implementation was a condition set by the IMF as a part of $12 billion loans.

Stocks

Egypt’s stock market fell with many investors absent for Eid al-Adha holidays. The Egyptian index dropped 0.7 percent in its lowest daily trading volume this year.

Economy

Central Bank of Egypt: Egypt’s annual core inflation which strips out the price of volatile items such as fruit and vegetables, jumped to 13.25 percent in August from 12.31 percent in July.

Acquisition

The sale of British bank Barclays African operations as part of a plan by Chief Executive Jes Staley to sim-plify its structure and improve shareholder returns is still in the deliberations phase with one of UAE’s largest banks Emirates NBD has entered the bid for Egypt retail venues.

Telecommunications

Telecom Egypt, the state-owned landline monopoly acquired the country’s first 4G mobile license at a cost of 7.08 billion Egyptian pounds ($797 million) paving the way for it to become the fourth mobile provider in Egypt. Egypt is giving companies that already operate in the country priority in obtaining 4G licenses but has said it would launch an international tender should any of the operators decline the of-fer. All existing carriers must submit the application before 22nd of September 2016 to accept the offer.

Real Estate

The Egyptian parliament expressed its desire to modify the old leasing law and to introduce the old leasing contracts to fall under the new lease law which in turn will increase all the leasing value of all real estate. Thus the tenants will have to abide by the gradual increase in the leasing rates and the succession of the contracts will only be inherited once for a period that doesn’t surpass 50 years.

Branding

Telecom Egypt (TE) announced that it will rebrand its internet arm, TE Data, the biggest internet provider in the country. The rebranding move comes in line with getting close to obtaining the new 4G license as a ‘new beginning’ for Telecom Egypt as an all-inclusive operator that provides internet services besides main telecommunications services under one brand TE.

Move

Shalakany Law office hired Hatem Darwish who was a senior associate at Baker Mckenzie, in his new position Mr. Hatem will be the partner in the Arbitration Department with a focus on investment and commercial arbitration in addition to complex litigation.

NATIONAL NEWS INTERNATIONAL NEWSTransport

Ride-hailing services such as Uber and others will have to register their apps and heed new regulations to operate in Abu Dhabi, a top official at the Gulf emirate’s taxi regulator said on Monday. U.S.-based Uber and regional rival Careem suspended services in the capital of the United Arab Emirates on 27th August after many of their drivers were stopped by authorities over violations of regulations. The new regulations are coming “very soon” and will include a provision requiring ride-hailing apps to register with The Centre for Regulation of Transport by Hire Cars (Transad).

Medical

UAE new medical liability law adopts human rights in patient care, protecting rights of patients, physi-cians, and health-care providers. The law guides health-care services to obtain malpractice insurance, outline doctor’s responsibilities and also details the process of investigation and disciplinary proceed-ings in cases of alleged malpractice. Under the law, patients can report any malpractice or medical neg-ligence by service providers or pharmaceutical companies directly to the health authorities.

Stocks

BW LPG, the world’s largest liquid petroleum gas shipper, has raised its stake in smaller rival Aurora LPG by 10 percentage points to 29.83 percent.

Law Firm

DLA Piper announces it has combined with IP boutique Dimock Stratton

Interest in the Canadian legal market from global heavyweights, in total, 16 lawyers from Dimock Strat-ton will join DLA Piper’s Toronto office, with the deal effective from 1 November 2016.

Promotion

McDermott Will and Emery has elected Ira Coleman as its new global chairman, replacing co-chairs Jef-frey Stone and Peter Sacripanti. Mr. Coleman will take up the position of chair of the firm’s 21-member Management Committee next January.

Litigation

Swatch wins Apple trademark battle. Watch company Swatch has successfully opposed Apple’s “iWatch” trademark on the basis of its registrations covering the logo “iSwatch” and the word “Swatch” the UK Intellectual Property Office (IPO) issued its decision following a hearing in April. The opposition was successful against goods including monitors and monitoring devices, cameras, computers, computer hardware, wireless communication devices, radios, audio and video devices and global positioning sys-tem devices. The mark Watch” may proceed to registration for computer software, security devices, and computer peripherals.

New arrival

Former Canadian Prime Minister Stephen Harper joins Dentons, Mr. Harper will be based at Dentons’ office in Calgary and according to a statement from the law firm will advise clients on ‘market access, managing global geopolitical and economic risk, and how to maximize value in global markets.’

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LAW IN FOCUS- R E AL ESTATE CONSULTANC Y- ZIZINIA E L MOSTAK BAL- CR E ATING LIVING L ANDMAR K S- A FR ESH LOOK IN THE R E AL ESTATE MAR K ET- B2B R E AL ESTATE- L AW YE RS IN THE R E AL ESTATE MAR K ET- PUBLIC PROSECUTION TO CHALLE NG E AR BITR AL AWAR DS- R E AL ESTATE - IN - HOUSE COUNSE L- CIT YSTARS PROPE R TIES IN HOUSE COUNSE L

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James is a member of Knight Frank’s international capital markets team representing the Middle East involvement in development and leasing advice to institutional landlords and corporate occupiers throughout the office market of the UK. He has been involved with investment disposal and acquisition advice on office buildings for Institutional, Property Company and private clients.

Are there any new projects Knight Frank will be proposing to the market soon?

In the residential sector, we are continually advising premium developers on various schemes and then guiding on product mix, specification and route to market. Our international residential teams have recently launched high profile schemes in the US, Australia, and Spain. In the Middle East, we are working a particularly iconic project, which we will be announcing to the market shortly.

REAL ESTATE CONSULTANCY

AN INTERVIEW WITH JAMES LEWIS PARTNER AT KNIGHT FRANK

In your opinion what are the key factors of influence that will drive the market forward?

All real estate markets benefit from transparency and standardised available information. With regard to the residential sector comfort surrounding delivery, the quality of final built product and finishes are important for credibility which in turn generates greater confidence. Availability of debt across all real estate sectors is important, this is especially important to bona fide residential end users who require homes.

Your company has more than 300 offices all over the world including 3 in the MENA region, what are the total investments your company has made in the regional market till now?

Our business established permanent operations with a single person in MENA in 2008; we are now close to a head count of 60, comprising 25 nationalities, our investment in people and training has been considerable. In addition to this, we have hosted numerous conferences and meetings for global Knight Frank team members which generate not only MENA spend but also builds awareness of MENA culture and business practice.

On July 1st, 2014 you previously stated in an article published on Knight Frank website that: “Knight Frank is committed to expanding its industry-leading global capabilities”, is Egypt considered as a potential expansion opportunity?

Egypt is a country of considerable scale and one where we have commercial occupier clients who have numerous leasehold facilities to serve the growing population. At this stage we work in collaboration with local partners to provide services, we are continually reviewing the most efficient method to deliver services.

What is the biggest challenge Knight Frank might face if you decide to expand your market share into Egypt?

Market transparency and obtaining accurate information with which to guide decisions are likely to be the greatest service level challenge. Security & safety is a real concern in all parts of our MENA business. The recent currency devaluations will impact how we contract our services.

Egypt has launched plans to build a new administrative capital does Knight Frank have plans to be a part of this phase?

The administrative Capital is an ambitious and exciting project, we will unquestionably be advising eventual commercial occupiers in this district.

When entering a developing economy such as the African market what facilitations and incentives do you expect for market entry?

We are very conservative in our approach so in the first instance we would look to collaborate with a local partner to ensure our clients are as well positioned as possible.

With respect to regulations and procedures, what are the usual issues property advisors face?

In terms of external regulations, in MENA we have historically witnessed increases in regulation orientated towards transactional services. More recently there has been greater interest from the authorities towards valuation services. New regulations require separate and distinct trading licenses from those licenses which might encompass transactional operations. Recently practitioners themselves are required to pass localised examinations which are in addition to professional qualifications like being a member of the Royal Institution of Chartered Surveyors (RICS). We would always suggest that international standards that are well regarded and relied upon by global lenders and investors are the model to follow.

In terms of internal procedures, at Knight Frank, we are continually enhancing our ways of working from our initial Client Due Diligence (CDD) through to output audits to ensure we adhere to statutory requirements and deliver the very best for our clients.

Is there anything you would like to highlight on the direction the real-estate market is heading to?

Real estate is now an increasing sophisticated global asset class. With regional uncertainties investors including; private individuals, families, institutional or sovereign will always look to preserve asset value. Capital is increasingly mobile and searching for long term safe heaven destinations across all the real estate sectors; residential, offices, industrial, retail, healthcare, education and other alternatives. This trend will continue as capital becomes more mobile and markets mature to make themselves attractive to global investors.

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LAW IN FOCUS

THE HEIGHT OF SHOPPING & ENTERTAINMENT

STARS CENTRE

Citystars Heliopolis has single-handedly revolutionised the shopping and entertainment concepts and experiences in Cairo. With the best local retailers combined for the first time with International brand names gracing 750 stores, shopping has not only become a pleasure but an entirely new experience.

Citystars Heliopolis offers a combination of entertainment and dining facilities that are unmatched anywhere else in Cairo. You can also add to this Egypt’s unrivalled entertainment experience with a -21screen cinema complex, Golden Stars Cinema as well as, Diamond Cinema Citystars D-BOX which introduced a new category of leisure to Egypt and took entertainment to a whole new level. Stars Centre has a unique blend of luxury brand names introduced for the first time to the Egyptian market such as Armani Jeans, Armani Junior, Burberry Children, Carolina Herrera, Longchamp, Love Moschino, Michael Kors, True Religion, Tory Burch and Versace Collection to name a few.

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CREATING LIVING LANDMARKS

Citystars are ushering in a new era of luxury lifestyle living, which will challenge your perceptions of home life, work life and even leisure. Pay attention - this is history in the making.Citystars Properties(Golden Pyramids Plaza S.A.E.) is Egypt’s pioneer in developing large-scale integrated mixed-use landmark developments. The company has successfully developed Citystars Heliopolis-Cairo, and is now expanding with several new urban and coastal resort projects throughout Egypt.

What is Citystars Properties current market direction?

Market direction and real estate are going for two segments:

Segment 1: 1st homes are usually targeted for smaller units (flats) rather than luxurious, stand-alone villas which are what all real estate developers are directing their attention to at the moment. The reason for this direction; the government supports and encourages the production of small residential units (flats) to serve the market by offering good financial packages to finance the flats.

Segment 2: 2nd homes which represent a vast segment of the demand not less than 30% of the total market size and concentrated over the coastal areas such as the Red Sea – Ein Soukhna and the Mediterranean – Northern Coast.

What are the latest projects Citystars Properties worked on?

Citystars Urban Resort Projects

Citystars Heliopolis

The first integrated mixed-use urban development project of its kind in Egypt and the Middle East. Citystars Heliopolis is one of Cairo’s most important and visited landmarks. Citystars Heliopolis has a total built up area of 750,000 sqm in the heart of Cairo and consists of: Stars Centre - the best and largest shopping / entertainment

LAW IN FOCUS

AN INTERVIEW WITH MOHAMED ABOL YAZID CEO of Citystars Management

Citystars Heliopolis

centre in Egypt (with over 750 stores), Star Capital – the best office towers in Cairo including all the AAA companies of Egypt with the largest and most advanced multimedia and communications infrastructure in the world, Star Living - exclusive residential apartments and 3 hotels - InterContinental Cairo Citystars (The largest InterContinental hotel in the world), Holiday Inn Cairo Citystars (The best Holiday Inn in the world) and Staybridge Suites Cairo Citystars (The first Staybridge Suites in the world outside of North America).

Citystars Katameyah

The project’s land extends over an area of 250,000 sqm with over a kilometre of frontage on the Cairo Ring Road. Citystars Katameyah in New Cairo includes an upscale retail and entertainment centre, an office district, Swissôtel offering 250 guest rooms and 50 serviced residences operated under the “Swissôtel Living” brand, along with 150 Swissôtel branded residential apartments for sale.

Citystars 6th of October

A luxurious mixed-use residential project in 6th of October that will include fascinating tokens of luxurious lifestyle facilities that include a residential complex, an office park, an integrated retail and entertainment centre and international hotels.

Citystars Coastal Resort Projects

Citystars Sharm El Sheikh

Spread over of 7.5 million sqm and located 60 metres above sea level surrounded by mountains, with superb panoramic views of the Red Sea, Tiran Island and overlooking a nature reserve. Citystars Sharm El Sheikh will include 1.2 million sqm of beautiful Crystal Lagoons and 22 kms of white sandy beaches, not to mention the largest Crystal Lagoon in the world, with a Guinness

World Record breaking area of 120,000 sqm. There will also be an 18-hole signature golf course designed by Colin Montgomerie.

Our facilities and amenities will also include a Light & Sound show, an international tennis academy, educational facilities and three luxury hotels & resorts; the Fairmont Citystars Resort with 415 keys and 316 Fairmont branded residential apartments for sale, the Swissôtel Citystars Resort with 388 keys including 386 Swissôtel branded residential apartments for sale, as well as the Raffles Citystars Resort with 245 keys and 100 Raffles branded villas for sale, and Citystars Sharm El Sheikh Branded Apartments 264 units.

Citystars Red Sea Riviera

Located along the Soma coast South of Hurghada, the site covers an area of 10 million sqm with a two-kilometre beachfront and is highlighted by Crystal Lagoons and a marina. Citystars Red Sea Riviera will also include an integrated retail centre, a signature golf course accompanied by a golf academy and a sports centre, Fairmont Citystars Soma with 300 Keys, branded Fairmont residences with 100 apartments for sale, and 50 Fairmont branded villas for sale. In addition to, other International hotels and residential apartments with hotel services for sale, as well as an integrated conference centre and various other recreational facilities.

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Citystars Sharm El Sheikh

Citystars Katameyah

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Citystars Al Sahel

Citystars Al Sahel will be a unique project on the North Coast Riviera of Egypt, highlighted by a white sandy beach overlooking the Mediterranean, including Crystal Lagoons and luscious landscape amidst the residential resorts with hotel services and unique recreational facilities.

Did the fluctuations in the exchange rates of the dollar affect the real estate market?

The devaluation of the Egyptian pound has caused massive inflation in the cost of the land, contracting fees, as well as the rise in unit price consequently reduced the consumer demand and shrank the total market size as many developers find it difficult to invest in the market with the current prices. Hence, the demand curve of high-end products may be declining for a short period of time, and the direction will be focused on high-end second homes for this segment.

On the other hand, the B+ and C+ will continue at a slow growth rate because of the inequivalence in income rate versus the growth in the inflation rate, until the financial capacity of the buyer absorbs the inflation which will return back after a minimum of one to two years to the normal growth in approximately the year 2018 – 2019.

With all these issues occurring in the Egyptian market, is there an impact on the real estate stock market and the public demand?

The overall capital market is declining because of the decrease of the incoming profit of the real estate sectors in the past few years, which is due to the inflation of the construction cost, resulting in the increase in the value of real estate or increase in real estate business risk; subsequently, the real estate company stock prices are declining in most of the capital markets.

With respect to regulations and procedures, what are the usual issues that Citystars Properties face?

In many cases, the urban planning will be produced before finalizing the acceptance coordination between the army, the civil aviation authority, the utility supply, and the touristic and antiquities affairs; therefore, there are so many different stages and procedures to obtain the final licenses for any real estate development urban site (land bank) which results in difficulty for the investor to create a good feasibility study creating a very strong real estate investment barrier.

Over and above, the infrastructure of new cities still needs upgrading and improvement, because the current infrastructure is insufficient to the growth of the real estate and new cities. This is as a result of the government acting as the only infrastructure investor as well as playing their normal role of monitoring and controlling with no room for private sectors to invest in it. We need to have new regulations to organize infrastructure investment without conflicting provision, laws, codes, and rules of monopoly.

What is your opinion on how to improve the market and what kind of facilitations are given or should be given by the government to real estate developers?

Revise all urban development’s planning in all cities to facilitate providing absent services and to minimize traffic congestion.

After achieving a remarkable project such as the Ring Road, paying closer attention to its protection, maintenance, and development is a vital act. There should be at least 5 km interval (maintain same distance all around) between the Ring Road and any surrounding development attracting intense traffic; to avoid traffic congestion, more energy consumption, and to avoid more cost for maintenance required by the surrounding areas; which may result in the failure of Ring Road. Creating connections between the East and West and North and South will enable this incredible project to further serve its purpose and progress accordingly.

Finally organizing the financial mortgage with an attractive interest rate to be able to finance real estate developments under one database information, this will help minimize corruption that may be committed by the developers or any dummy projects. This new suggested regulation will ensure real estate developers perform efficiently and abide by the delivery date, and they should be inspected by a responsible governmental authority to protect real estate buyers. As a result, a governmental authority should be shaped to allow such protection to take place.

LAW IN FOCUS

Citystars Red Sea Riviera

Mohab Hassouna is a senior manager of sales at Blu Real Estate with many years of experience in the field of real estate whether developing or consultancy. Blu Real Estate came along way since it started in 2009. In this interview, Mr. Mohab discusses the role of real estate consultants and the direction the real estate market is heading towards.

Who are your current clients?

In the field of real estate development, our notable clients are Mountain View, Emmar, Sodic, Palm Hills, Laguna Bay “Capital”, Lavista, Tatweer MisrTaj City,  AL BUROUJ, Sabbour,  Hassan Allam  , Maxim Holdings, Jumeirah and, Madaar Development.

What plans for expansion is your company currently considering?

We are considering to relocate our main office to the fifth settlement.

What are the steps you take with each client?

We handle everything from the start to finish, if a client comes to our office and expresses intentions to invest in real estate, we provide choices for the client. We make sure that the property is of good value and the instalments (if applicable) are reasonable. We do our best to ensure a good rate of retune on our client’s investments.

What do you think of the current market direction?

The current market direction in real estate is heading for El Sokhna before people did not like El Sokhna road because of its risks but since the improvements made on the roads network; El Sokhna has become easily accessible especially through the regional ring road.

In general, the real estate market is being bombarded by rumors of instability and that the market will reach a stage of saturation which will cause the sales to decline. From my work in blu and working alongside developers, the real estate market is on a steady increase and if we think about New Cairo Region “settlements” all the land space is sold out. Furthermore, if we consider the destabilization of the Egyptian pound, it may have caused some sort of fluctuation in the real estate market,

from the buyers side, many of the buyers abstain from making any investment due to the rise in the prices which makes them believe that is not the real value of the estate they are going to invest into.

We determine our clients as buyers, sellers, and investors. We make sure that we have a proper cycle if a client wants to buy a property and then sell it later on; we make sure that the client will have a good return on their investment with follow-up support, we are not a “hit and run” company like others in the market.

The real estate market will only start to decline in demand in 13 years, with developments such as Taj city which is also retail and many projects such as the future city will provide stabilization for the foreseeable future.

The real estate market is a great investment opportunity we advise many clients to use this and not let it slip from their hands.

What is your opinion on how to improve the market?

As blu we mainly deal with trusted developers, sometimes we may have problems with certain developers and we advise our clients about them. We suggest that a standard must be made in terms of delivery time and finishing time, other than this brokers sometimes misrepresent certain information and the culture in Egypt makes it difficult for real estate consultants due to the reputation some brokers have. Brokers must work on their reputation and prove the quality of their work.

Any personal comments you would like to add in about the industry?

There is a bad reputation for brokers in the field, I would like for all brokers to make sure of the quality of the work they deliver to the client and make sure they do not misrepresent any information.

A FRESH LOOK IN THE REAL ESTATE MARKETAN INTERVIEW WITH MOHAB HASSOUNA SENIOR PROPERTY CONSULTANT AT BLU REAL ESTATE

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Before we established B2B we first gazed on the needs of the Egyptian market, does it need more real estate brokers or is it saturated and we made a difference between official brokers and other who work without permits plus the credibility of brokers in Egypt is questionable.

We questioned ourselves do Egyptians need real estate brokers, the answer is no because real estate brokers are in abundance, what Egyptians need are property consultants.

B2B REAL ESTATEAN INTERVIEW WITH NEHAD ADEL

PRESIDENT OF B2B REAL ESTATE BROKERAGE

What is a real estate consultant? it is someone that provides guidance in the matters of property sales whilst local brokers only view the buyer as a target to sell anything, our consultants must realise the benefit for the buyer or their client as buying a property is an investment and this investment can bring prosperity to the buyer when a good return on the market value of the property is the case.

B2B found a gap in the consultancy investment house and having real estate consultancy is not a first time appearance and many carry this practice around the world but these consultants do not have strong brokerage plus they only operate commercially.

In the Middle East brokerage and consultancy firms only handle corporate accounts and not cater for market consumers like buyers, B2B acts as a one-stop shop that handles every aspect to the real estate market.

We first had the administration of the commercial sector of B2B and this referred to as a non-residential real estate segment, abroad commercial encompass offices, malls, office parks, retail, medical segment and this is a totally new segment in Egypt plus the industrial segment which is booming in Egypt it includes warehouses and factories.

The real estate law in Egypt is not well established and many have problems in the market because of the regulations. The regulations are not keeping up with the real estate boom in Egypt because the real estate market is going through an evolution.

The retail venues are not well established, for example, you have malls, the mall is very well designed from the exterior but the interior is poorly set out and we B2B perform pre-design consultancy that covers everything from the indoor to outdoors including pillars and spaces.

We then start to market and sell the spaces according to the nature of the venue whether its lifestyle mall or neighbourhood or community malls and regional malls such as city stars. We then start to plan for the retail for the types of stores that will open and proceed to lease then after sales which will cover everything from security to the maintenance.

This is how the commercial aspect of real estate works.

For a real estate consultancy to try its chances in real estate development takes much careful thinking and planning and the Egyptian market is in need for real

estate consultants, we offer our services free of charge and we ensure credibility and neutrality as we don’t push a certain developer in the face of the buyers.

We at B2B started to play as consultants for real estate developer by providing consultancy for the developer in every matter including buying the land, predesign work and including marketing and branding for the developer.

Our third administration is the investment department, we guide investors to estates that have a high return value, we have a team that research for the investor and perform marketing researches and carry on various tasks to ensure our ideology for B2B to be a one stop shop for the real estate market. At B2B we act as sub-developers alongside the developers that carry out all the tasks for the developers.

The Egyptian market post Arab spring revolution is performing very well on contrary to what is heard in the market, you must look at numbers and not rumours in the market, most real estate developers are performing well and having an increase in profits.

The land development in Egypt in increasing and for instance the settlements are stretching all the way to sokhna plus Egypt marriage numbers are increasing and the demand for residential sector is in constant demand and the saturation for the supply is not enough.

The relocation that is happening from downtown Cairo to New Cairo is high and increasing throughout all sectors whether medical or residential.

The market is experiencing many new comers and land developers from many gulf countries.

I would suggest from the regulator to organise the market as the market is booming and the land buying process must be organised between the developers and the government.

We at B2B belief that to fulfill the real estate model we must cover all aspects of the market and not leave any part of it unutilized such as the middle class which represents a large number of prospective buyers and another neglected sector which is the educational sector that is going through an increase in the market share.

Egypt must eliminate the slow bureaucratic process and inject fresh blood into the administration to let go of all what is anchoring the process for development.

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LAWYERS IN THE REAL ESTATE MARKETAN INTERVIEW WITH MOHAMAD TALAAT PARTNER BAKER AND MCKENZIE LAW FIRM

Mohamad Talaat is the managing partner of Baker & McKenzie’s Cairo office. He is a widely recognized figure in his areas of practice and has many years of experience in the field of real estate.

What is the nature of the relationship between a law firm and the legal in-house department and the nature of integration between them?

This is an interesting question. As a matter of fact I have always questioned myself about the reasons of having a legal department and yet in-house lawyers resort to outside counsel. I have never been an in-house lawyer myself, however from what I have seen throughout my years as a legal practitioner; that the in-house lawyer tends to be more focused on the day to day company operations but once it comes to impartial opinions or disputes; in-house counsels delegate the matter to an off counsel firm as usually, an outside counsel is more impartial with the issues given to them and notwithstanding any issues that the in-house counsel may encounter.

On top of that with respect to litigation and cases before the courts, usually the in-house counsel delegates these matters to the outside counsel to handle them, and an outside counsel role is to be supportive. Also, there is an economic side to this because if the day to day

operations of the company were referred to an outside counsel it will be much more expensive and this is the reason companies hire in-house lawyers.

Many in-house lawyers try to eliminate the use of outside counsel. This may be due to the turbulence in harmony between them, and either the in-house lawyer is trying to prove value to the company or the firm that works with the in-house has proven to be useless.

What are common types of contracts you work on in the field of real estate?

This varies on the nature of work we are assisting the company in, whether a real estate company in construction, land purchase, sale contracts and all the way to share transfers between shareholders, but mainly most of our work is focused in contracts with end users “buyers” and land processes with the government.

What is your opinion on the current laws and procedures “law no 8 and law no 59”

In my opinion there is no reason for an investment law now as the main reason for it is to give incentives to the investors and the current law doesn’t deliver on this part, it may have existed in different times. The tax incentives have been eliminated from the law, therefore companies’

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law should by itself suffice and include all aspects, many people might disagree with me but this is what should be implemented in order to have improvement.

What is your opinion on the latest law being drafted (2015)?

To be frank with you there is no need for it. We need first to implement the current laws and train the current governmental employees to be more cooperative with investors as many employees interpret the laws in an unamenable manner for investors which impede the investment in Egypt. On top of that, the administrative implementation of the law must be focused on. It is not sufficient to have slogans and not to focus on details which are very important to provide a solution for the problems which the investors are facing.

Sometimes the nationality of foreign investors in relation to laws and jurisdiction affect local investment, what solutions do you apply in this regard?

There are no exceptions on the nationality of foreign investors except in the nationality of commercial agents and purchasing of agriculture land based on the agricultural reform law in 1952 which is still in place till now; foreigners cannot acquire land in the Delta area and in Sinai. In this respect, Egypt is actually more liberal than many other Arab countries when it comes to land ownership.

What do real-estate companies prefer from a law firm; Litigation or arbitration - the choice in real-estate dispute resolution and the role ICSID “International Centre for Settlement of Investment Disputes”?

Arbitration is becoming more in trend for companies but due to the cost of the procedure companies now resort to litigation “economic court” as it is more expeditious when in it deals with cases, the ICSID is different as it is an investor against the government and the process for it takes many courses from proving the ground to the dispute to proving the existence to the right of the investor.

What are the government red tape and legal hurdles do you represent real-estate companies in?

This is primarily on the land acquired from the government, sometimes the government is quite rigid in its position but in almost all cases all disputes are solved amicably.

What is your opinion on FIDIC and the role of FIDIC contracts?

FIDIC is a model construction contract and sometimes it is useful for companies. Egypt is not registered with the FIDIC association because we have the contractors association which sometimes doesn’t comply with the rules of FIDIC but we use the same principles applied in FIDIC contracts and from my point of view in Egypt we should adopt FIDIC for better contracts.

What are the steps law firms carry out to ensure a due diligence practice by real estate companies?

This mainly revolves on the registration of lands, we make sure that the land ownership is solid and we make sure that companies abide by all the laws relating to ownership of properties and land.

How do law firms initiate land registration process for real estate companies?

This is usually carried out by our associates and there is a problem with this, the registration process of land is very complicated and would be repelling for investors and companies.

Do you have any personal remarks?

Better planning and paying more attention to details, we should focus more on solving problems and not create slogans for them.

LAW IN FOCUS

To learn more, please visit us at www.bakermckenzie.com/egyptHelmy, Hamza & Partners is a member of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm

A TRULY GLOBAL FIRMBaker & McKenzie has been global since inception. Being global is part of our DNA.

Our difference is the way we think, work and behave – we combine an instinctively global perspective with a genuinely multicultural approach, enabled by collaborative relationships and yielding practical, innovative advice. Serving our clients with more than 4,200 lawyers in 47 countries, we have a deep understanding of the culture of business the world over and are able to bring the talent and experience needed to navigate complexity across practices and borders with ease.

About Helmy, Hamza & Partners

Helmy, Hamza & Partners was founded in 1986 as a member firm of Baker & McKenzie International, it is the longest established formal international affiliation in the Egyptian legal market that combines the ability to offer clients a detailed knowledge of local law with the experience of a global law firm. As part of the Baker & McKenzie network, Helmy, Hamza & Partners is deeply committed to furthering its client’s business interests both within the Middle East and globally. We currently employs some 48 lawyers, including 6 partners, 2 Of-Counsels and 40 associates, all of whom have an outstanding knowledge of the local legal, business, social and cultural environment. All our lawyers are fluent in Arabic, English and many also speak other foreign languages.

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The Egyptian court of cassation empowers the public prosecution to challenge arbitral awards violating the regulation of foreign ownership of real estate

The regulation of foreign ownership of real estate in Egypt, especially in Sinai Peninsula is a matter of national security which finds an echo in the legislation and the Court of Cassation rulings. By way of example, Article 2 of Law of Integral Development of the Sinai Peninsula No.14/2012 provides that ownership of real estate in the Sinai Peninsula is exclusive to Egyptian nationals having two Egyptian parents. Recently, the Court of Cassation has rendered a landmark decision in January 2016 in line with the same trend of heavy regulation of foreign ownership of real estate. Prior to analyzing such decision, we shall shed light on the geneses thereof.

Indeed, during the years preceding the 25 January 2011 Revolution, Egypt has witnessed a phenomenon of fraudulent arbitral proceedings aiming to breach public policy rules regulating the publicity of real estate lawsuits and restricting the acquisition of real estate property by foreigners. These arbitral proceedings were characterized as fraudulent for several reasons.

Firstly, the arbitral proceedings would be means to evade the requirement of Article 65(3) of the Code of Civil and Commercial Procedures (“CCCP”) which provides that the real estate lawsuits’ initiatory pleading before local courts shall be notarized.

Secondly, such arbitral proceedings would also aim to evade payment of taxes due on such notarization.

Thirdly, the aforesaid arbitral proceedings, under the cover of the principle of confidentiality of arbitration, would be conducted without the participation of the owner of the real estate. Finally, the arbitral award rendered would permit a foreigner to unduly acquire a real estate in violation of public policy provisions. For the purpose of protecting private property, being a fundamental right guaranteed by the Egyptian Constitution, and combating such fraudulent arbitral proceedings, the Public Prosecution took the initiative to challenge these awards through the setting aside proceedings under Article 53(2) of the Egyptian Arbitration Law No.27/1994 which provides for the annulment of awards contravening Egyptian public policy.

In this respect, the Public Prosecution aimed to protect the real estate property against fraudulent arbitral proceedings which violated public policy rules and harmed third parties rights. The Egyptian Arbitration Law does not contain any provision empowering the Public Prosecution to challenge arbitral awards. Nevertheless, the Public Prosecution relied on Article 87 CCCP which provides: “Public Prosecution is entitled to file lawsuits in the cases provided by the Law (…) ”. The Public Prosecution has also invoked Article 89(6) which entitles it to intervene in lawsuits pertaining to public policy and good morals, as well as Article 96 that entitles it to challenge court decisions in cases where the law authorizes such intervention and if the court decision breaches a public policy rule, or if the law permits the Public Prosecution to file an appeal.

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PUBLIC PROSECUTION TO CHALLENGE ARBITRAL AWARDS DR.ISMAIL SELIM (PARTNER)ABDALLAH EL NOKALY (ASSOCIATE)NOUR & SELIM IN ASSOCIATION WITH AL TAMIMI ADVOCATES & LEGAL CONSULTANTS

According to the prevailing scholarly view, the Egyptian Legislation lacks a provision that empowers the Public Prosecution with the right to initiate setting aside proceedings against arbitral awards even for the sake of safeguarding public policy. Solely the losing party in the arbitral proceedings may have the interest and locus standi to file setting aside proceedings pursuant to article 3 of the CCCP.

Yet, such scholarly view did not influence the Court of Cassation in its recent landmark decision (No.5162/79j) rendered on January 21, 2016. The case relates to two foreigners which have purchased a real estate property from a company in Sharm El Sheikh and have further initiated arbitration proceedings by virtue of a submission agreement. On June 25, 2005, an award (Arbitration award No.12/2005) was rendered in their favour, establishing the validity and the enforceability of the purchase agreement despite its breach of Laws No.114/1946 (Law for Property Registry and Certification) and No.230/1996 (Law regulating the Ownership by Foreigners of Buildings and Land Plots). The Public Prosecution initiated setting aside proceedings against the award before Ismailia Court of Appeal. The latter rendered a judgment on January 28, 2009, by which the award has been annulled. The Company lodged an appeal against the said judgment before the Court of Cassation.

The Court of Cassation clearly stated that if an arbitration award violates a public policy rule (which is the purchase by a foreigner of a real estate property without complying with the conditions of the Law 230/1996), the Public Prosecution is entitled to file setting aside proceedings against both the award and the arbitration agreement itself.

By way of conclusion, the Court of Cassation prioritized the protection of public policy by remedying to the aforesaid legislative lacuna through extending to post-arbitral proceedings the CCCP rules regulating the intervention of the Public Prosecution in civil litigation proceedings.

LAWTODAYMAG.COM

Abdallah El Nokaly

Dr.Ismail Selim

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REAL ESTATE IN-HOUSE COUNSEL

Hani Zahran is the Managing Partner of Zahran & Co Attorneys at Law, with a wealth of experience as an In-House General Legal Counsel for major real estate development companies in the Egyptian and Middle East markets.

In this interview Mr Zahran stated that the real estate development is an all-round business process that goes through many different stages from acquiring the plot of land and taking different procedures to developing it until the selling and marketing of different types of units and projects. All such stages requires certain procedures in accordance with the applicable Laws and Regulations.

What is the role of the in-house counsels and what skills should they possess for the job?

The lawyers who belong to a successful team in a real estate company should play different roles to perform the job professionally, they should be dynamic enough to assist all other departments on daily basis, and have a very high drafting skills and knowledge of the related Laws to provide ongoing legal advise on best framework, they should be bilingual to have the ability to work on sophisticated kind of contracts with detailed provisions in both English and Arabic languages covering the design phase, the construction award, the implementation of the design on ground and the supervision of the construction works. They should also be able to understand the difference between the editions of FIDIC contracts for both construction and consultancy services.

Other lawyers who are not capable of drafting in English can work on the drafting of all other documents used by the company in Arabic in addition to performing administrative tasks such as filing documents with local authorities, registration of real estate and attending court cases on behalf of the Company and in cooperation with the Company’s External Counsel.

Real Estate in-house lawyers will deal with many local and foreigner clients, and one of the most important career objectives is the communication skills, knowledge of languages, eagerness to learn and full knowledge of the current regulations and laws and specially pertaining to construction and ownership of land by foreigners, property register, and the Real Estate Regulation issued by the Ministry of Housing.

What is your opinion on the current way the real estate market is regulated in Egypt?

The Real Estate Market is currently regulated by the New Urban Community Chairman decree No. 6 of 2000 as amended by the Minister of Housing decree No. 414 of 2010, there is a new Real Estate Regulation which was prepared by the Ministry of Housing last year, and is currently pending approval from the Council of Ministers and the Parliament, by implementing this new Real Estate Regulation in my opinion the relationship between all parties will be better regulated, the market performance will improve in general and this could be reflected significantly on the national economy.

The common problem in the Egyptian real estate market is the lack of clear procedures which regulate the relationship between the authorities, the developer, the sub developer (if any), the contractor, the consultant and the end user. Unfortunately the protection of the rights of end users/customers, contractor or consultant towards the developer is not on the priority list of the competent authorities, the authorities cares more about the tendering process between the developers and the different authorities which has title over the plot offered for tender, the conclusion of the sale and purchase transaction and finally the collection of the land price. Once this process is completed most of the developers suffer from the delay of the authorities in issuing the ministerial decree which approve the planning and division of the plot into phases, which is considered as

LAW IN FOCUS

AN INTERVIEW WITH HANI ZAHRAN

the first step to allow the developer to market and offer the unit of the development for sale (off plan).

It is worth noting that all ministerial decrees issued in Egypt during the past 20 years included a standard provision stating that the developer shall have no right to market or sell the units except after completion of the entire project and according to the time schedule approved by the authority. Even though it is clearly stated that the non-compliance by the developer with such provision could lead to a cancellation of the ministerial decree, however, most of the developers if not all of them are launching their projects and offering their units for sale once they obtain the ministerial decree in hand.

The main instrument governing the relation between the developer and end user is the Sale and Purchase Agreement drafted and prepared by the developer. Unfortunately, the competent authority do not interfere or review the drafting of the unit Sale and Purchase Agreement, and due to the absence of any supervision concerning the drafting of such agreement with the end user, the developers has a free hand to include very harsh provisions in such agreement as long as they do not breach the law, and this has created many issues with end users in terms of respecting the contracts provisions and the delivery of units.

How the relationship between the developer and the end user in your opinion should be regulated?

In 2007, we have prepared a standard agreement to be used by and between the developer and the end user, in such model contract we have included different annexes regulating the future relationship between the end users (through establishing the Owners Association) and the management company which will maintain the project post the delivery. This model is now being used by many developers as it includes protection clauses for both parties and regulation to use the development and keep it maintained for life time.

We have also created a form of expression of interest that must be filled by the interested or potential clients as a first step prior to the reservation phase, this document allows the developer to test the market demand and based on the demand the developer will release specific units type and sizes which will enable the developer to cut costs and be efficient when it comes to the allocation of funds for the projects. Once the potential client selects the unit preferred the developer uses a unit reservation form which includes most of the essential details of the transaction. And once the advance payment and the first instalment are collected the client can come and sign the Sale and Purchase Agreement, this process takes

about three to four months and in my opinion it gives both parties enough time to build the trust in the project and show seriousness in performing their preliminary obligations towards each other.

Do you have any suggestions on how to improve the market?

In my opinion the government needs to establish a governing authority whose main role shall be to re-organise the real estate sector and protect the rights of all parties by classifying the real estate developers based on certain criteria same as the RERA in Dubai-UAE, which classifies developers in classes: class A is a developer that has an outstanding record and will be given exceptional facilitations like marketing for the project before construction award, while class B may proceed to the marketing and selling phase once they have at least awarded the construction works, completed the foundations for the project and started the construction, and class C may only proceed with the marketing and sales of the units once the project is completed and ready for delivery, the classification of the developers should be always based on their track record and could be modified in light of the size of the developer and his previous development delivered to the customers.

In Egypt, we do not want to imitate other real estate markets but we want to establish a greater foundation for the real estate market in Egypt and you could not have imagined the boom which the real estate market is going through but unfortunately the real estate market is saturated from real estate development and the problems occurring even after delivering the project units to the buyer.

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INTERVIEW WITH MR. AHMED SABRY, HEAD OF LEGAL, CITYSTARS PROPERTIES

LAW IN FOCUS

Mr. Ahmed Sabry is the Corporate Legal Counsel of Citystars Properties with substantial in-house legal experience. Mr. Sabry also has extensive experience in mergers & acquisitions; general banking & finance; intellectual property rights; and international arbitration. He also holds an LLM from Queens Mary University in London.

The role of in-house counsel:

In today’s corporate world, in-house counsels are responsible for a wide range of legal and business duties. In addition to the provision of sound and reliable legal advice to the business, in-house counsel work also includes proactive risk management solutions consistent with the organization’s vision and mission.

The role of in-house counsel in any organization is vital and quite sensitive, as it requires a very solid understanding and familiarity with a variety of areas of the law, including contracts, employment, litigation, tax, securities, among others. It will be fair to say that in-house counsel’s role in any organization is rather indispensable. By using their business and legal knowledge, in-house counsels operate at a lower cost that outside attorneys and lawyers.

When it comes to Citystars, its legal department is believed to be quite sophisticated, as it comprises of 12 fulltime lawyers, administrative assistants and other supporting staff. We have an efficient, coherent and strong legal team providing constant legal support to the management of Citystars.

In addition to the fact that in-house counsels are usually invited (and required) to provide strategic and management decisions, in-housel counsels are typically involved in matters much earlier in the process, often at the planning stages. Consequently, the main contribution the in-house counsel offers is to help shape decisions early on in the process that can appropriately minimize legal risks while still achieving business goals. This stands as one of the major differences that exist between in-house and outside counsels.

FIDIC

The legal department of any real estate development company must have a very strong base in drafting contracts. At Citystars Properties, we work very hard to ensure the highest quality of contracts. Given that, Citystars properties almost always favors the use FIDIC contracts. While they profile risks, FIDIC quite understands the intricacies and complexities of construction works, and its contracts are designed in a manner that allocates risks based on which party is placed to assume the risk. This is a very important feature that makes using FIDIC contracts beneficial.

Today, FIDIC membership covers ninety-seven countries of the world. One of its main essential objectives is to promote and encourage the development of young professionals in the consulting engineering industry. FIDIC is actively promoting high standards of ethics and integrity among all stakeholders involved in the development of infrastructure worldwide and most importantly it promotes and assist the worldwide development of viable consulting engineering industries practice.

IN HOUSE COUNSEL

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The legal issues:

The main legal issues in real estate development projects in Egypt are related to Law Number 89 of the year 1998 for Tenders and Auctions, because of the famous cases related to that law. The law stipulates that government contracts for construction projects must be undertaken through public tenders.

It is worth mentioning that the Egyptian government has recently announced that it will not withdraw any lands from the investors even if they violated the law while establishing their projects on land allocated for agriculture, especially in the areas of 6th of October, 10th of Ramadan, New Cairo, Cairo, Ismailia and Cairo-Alexandria Desert roads. However, the government has reasserted that violators will pay fines that represent the difference between the price of lands allocated for agriculture and others allocated for establishing projects/resorts.

The Egyptian legal system:

The Egyptian legal system does provide protection for real and personal property, but laws on real estate ownership are complex and titles to real property may be difficult to establish and trace. Thus, amendments have been introduced in 2007 to simplify the title registration process for residential construction in new urban areas built on the outskirts of Cairo and Alexandria.

In addition, the Presidential Decree number 17/2015 allows the government to provide land, free of charge (in certain areas only) to investors/developers who satisfy certain technical and financial requirements. This provision expires on April 1st 2020, and the investor/developer must provide cash collateral for 5 years for either production (for industrial projects) or operations (for all other projects).

The mortgage market

The mortgage market is still underdeveloped in Egypt, yet the Real Estate Finance Law Number 148 of the year 2001 authorizes both banks and non-bank mortgage companies the right to issue mortgages. The Law provides procedures for foreclosure on property on defaulting debtors and amendments passed in 2004 that allows issuance of mortgages backed securities. According to the regulations, banks can offer financing in foreign currency of up to 80% of the value of the property.

In recent years, the Egyptian government has shown a commitment to attract foreign investors into the real estate sector, therefore the process of property purchase and ownership for foreign nationals as investors is

beginning to improve over time, and new registration regulations are currently being drawn up.

Litigation or arbitration?

Litigation is an adversarial process whereby the parties submit evidence to a judge or jury and then rely on the judge or jury to make and impose a binding decision regarding the dispute. Litigation is governed by formal rules and procedures of court and generally is time consuming and expensive. Since it is adversarial, litigation is in effect a contest in which a winner and loser is selected.

Arbitration is similar to litigation in that it is an adversarial process whereby the parties submit evidence to a neutral third person (the arbitrator) who then renders a decision regarding the dispute. However, arbitration is usually private and not conducted in the surroundings, or under the formal rules and procedures, of courts. In order to compel another party to arbitrate a dispute, in most cases the parties must have previously entered into an agreement to arbitrate their disputes.

In Conclusion, we feel that the weakness of investments in Egypt is the futility of the legislation being amended or introduced with no regards to the lack of a mechanism to implement those laws. Thus, we look forward to seeing not just the laws being introduced but the procedures for which to enforce and implement such laws.

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PROFESSIONAL DEVELOPMENT

- BIN SUWAIDAN ADVOC ATES & LEGAL CO NSULTANTS

- FINANCIAL MO DE LLING FO R L AW FIR MS

- LEGAL TR ANSL ATIO N

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BIN SUWAIDAN ADVOCATES & LEGAL CONSULTANTS A NEW MARKET

As a law firm originally based in the UAE, what inspired the opening of an Egyptian branch?

As the most recent of the Bin Suwaidan branches, the Egyptian branch was orchestrated to accommodate the vast majority of clients who carry out business throughout the Gulf. Having trusted clients in the UAE, we were encouraged by clients to open a branch in Egypt. Our clients were very receptive to the idea of having multinational support.

How did chairman Abdul Moneim Bin Suwaidan first start Bin Suwaidan Advocates & Legal Consultants and what is it that inspired him to start Bin Suwaidan?

Mr. Abdul Moneim Bin Suwaidan was a renowned prosecutor and judge prior to opening his own firm. Today, he is not only the chairman of Bin Suwaidan Advocates & Legal Consultants, but a member of the Board of Directors of the Dubai Judicial Institute.

Bin Suwaidan Advocates & Legal Consultants was started in 1997 in Dubai to offer a better solution to the lacking legal market in Dubai at the time. Mr. Abdul Moneim strived to serve the community and provide top legal support to corporations, small businesses and individuals. The great success in Dubai eventually led to the growth of Bin Suwaidan Advocates & Legal Consultants to other parts of the Gulf and Middle East.

What is it that makes Bin Suwaidan Advocates & Legal Consultants different from other law firms in Egypt?

While we have offices in Dubai, Ajman, Abu Dhabi and Khartoum, we actually practice as a single firm. Our legal teams cross office boundaries, working together virtually and in person. As a result, Bin Suwaidan Advocates & Legal Consultants is well versed in efficiently addressing and resolving complex issues. We are unique in that we have the ability to build relationships with clients that allow us to foresee and prevent potential problems, as well as conform to the particular needs of every client.

We provide the support of a large law firm in harmony with the individual, one-on-one support most valued in small firms. At Bin Suwaidan, our clients are able to connect to the lawyers involved in their cases personally. Regardless of where our clients travel, they can be sure that Bin Suwaidan has a branch, longstanding relationship, partner firm or support staff wherever they go. That way, our clients have worldwide support when it comes to the different regulations of each country.

What is the ideology and values Bin Suwaidan was built on?

Bin Suwaidan was founded on a set of values to which we refuse to compromise. We consistently achieve excellence in our projects, processes, and services. We define success as getting the right things done well in due time. Our approach with efficiency and effectiveness with cohesion and collegiality is what allows us to succeed. We act with honesty, integrity and hold high ethical standards. We are accessible, hold high standards of professionalism and strive for excellence in every endeavor.

PROFESSIONAL DEVELOPMENT

AN INTERVIEW WITH MOHAMED EL DASH BRANCH MANAGER OF BIN SUWAIDAN ADVOCATES & LEGAL CONSULTANTS EGYPT

What is Bin Suwaidan’s main focus or area of expertise?

Bin Suwaidan Advocates & Legal Consultants is proud to have lawyers with expertise in a broad range of services. As a full-service law firm, we excel in every sect of the law. However, we are more deeply interested in promoting the growth of foreign investment in Egypt. We feel that with the latest incentives, Egypt is set to become a hub for entrepreneurs and we are well suited to assist them in that regard.

So what kind of support does your firm offer foreign and domestic investors seeking to benefit from recent incentives?

Bin Suwaidan Advocates and Legal Advocates assists entrepreneurs and new investors in interpreting the incentives offered by the investment law, identifying the applicability of each incentive for each different business, as well as handling all transactions necessary in actually incorporating a company in Egypt. We assist in tax risk prevention, optimization, and management of the tax exemption privileges extended to free zones. Our firm handles the foundation of a business and is there for every step on the road to its success.

How does the work culture at Bin Suwaidan differ from other law firms and how do you ensure the best environment for best practice?

There is complete fluidity in the communications between counsels and partners because we have an

open door policy. No one is afraid to ask questions or voice concerns, which ensures each lawyer is pulling their own weight and making a conscious effort toward exceeding the expectations of the clients and reaching the goals of the firm.

What challenges do you usually face in client relations management?

We identify ourselves with our clients’ requirements and work with our clients to help them achieve their goals. In operating a policy of direct partner involvement in client matters and a system of regular review we ensure that all clients are provided with a top class service and that all matters are handled in an efficient and cost-effective manner. Effective communication is key to our client relationships, helping us focus on our clients’ aims and concerns. By developing a real understanding of each client’s business and building a strong working relationship with them, we can play an effective role in shaping their strategic and financial plans. Our lawyers handle a wide range of work so that clients benefit not only from the depth of legal knowledge and expertise but also from commercial experience.

Do you have anything to add?

Our firm prioritizes accessibility to lawyers. That’s why we provide online consultations for any prospective client interested in getting a primary opinion on his case. We welcome the opportunity to answer any inquiries at the convenience of our clients. This feature is available at our website, www.binsuwaidan.com.

LAWTODAYMAG.COM

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Ramy Fahmy is the Managing Partner of Hayle Consulting and provides financial & economic advice to leading international firms.

What is Hayle Consulting?

Hayle Consulting is a specialist financial and economic planning consultancy firm, it was established in 2011 in the UK and established in Cairo in 2015.

The firm’s main purpose is to ensure the effective delivery of financial forecasting, economic planning & strategic structuring for client’s businesses through the delivery of “OFEMs” Operational Financial Economic Models.

Hayle manages and coordinates the long-term strategic planning of businesses whether it be law firms or oil and gas companies. In doing so we carry out analysis budgeting and planning for related business units.

In addition to providing such services to law firms, we also work alongside them on certain projects such as acquisitions, by where we implement processes & systems in line with planning & control model of the organization during pre-acquisition phase (i.e. due diligence process, validation of business models) and post-acquisition/integration phase.

FINANCIAL MODELLING FOR LAW FIRMS

AN INTERVIEW WITH RAMY FAHMY MANAGING PARTNER OF HAYLE CONSULTING

Hayle has ongoing projects in Egypt, Sudan, Kenya, Uganda, Pakistan, Saudi Arabia, Emirates, Turkey, Lebanon, Canada and London.

Over the past five years, Hayle has undertaken oil & gas projects (Upstream & LNG) at a value circa of $60 billion in addition to technology, medical, aviation, food & beverage, and law firms.

What Is OFEM (Operational Financial Economic Model)?

OFEM simply put is a tailor-made model for a business. Using this model, a law firm, for example, can make decisions such as maintaining necessary reserve cash, expansion, and development of its practice. Even down to assets handling.

Most of the time the main tool is excel due to the flexibility it offers. It’s important to understand that this is not about Excel. Knowledge of Excel itself is just a basic prerequisite. Modelling is a distinct skill, don’t confuse it with “Excel”, which is just an environment for modelling. The most important talent a modeller needs is the ability to simplify complex things without losing their essence. Accordingly, the mixture between modelling techniques and the environment used to reflect those techniques must be mastered to build a successful model.

A good model should:

Be relatively simple

Focus on key cash flow drivers

Clearly, convey assumptions and conclusions

Evaluate Risks

Financial modelling methods can be used to forecast a picture of a security or a financial instrument or a company’s future financial performance based on the historical performance of the entity. It includes preparing detailed company-specific models which are then used for the purpose of decision making and performing financial analysis. It is nothing but constructing a financial representation of some, or all, aspects of the firm or given security.  It can also be a mathematical model of different aspects of the financial health of a given company and this model can be made on a simple, not book paper or in excel, with later it is easily possible to analyse the impact of different assumptions or change in value of various variables hence gives the more flexibility. Financial modelling is a mirror which shows whether:

An Organization is in need of additional funds (debt or equity) or not;

How a business will react to different financial situations or market conditions;

In which company we should make investment for better returns i.e. comparative analysis;

Analysing and defining the risk level;

Has the company had a change in direction that is a loss of customers, expansion etc.

Identifying of Strategic and Business Plans through finding strengths and weaknesses; and

It’s a technique to value and analyse Firms, IPOs, and FPOs.

Coordinate Management reporting activities for the business by defining the guidelines and methodologies for the branches, and ensuring the information flows to the strategic planning function.

Coordinate internal and external benchmark analysis and special projects aimed at improving operational efficiency.

Implement processes & systems in line with planning & control model of organization.

Business variance analysis: Analyse the dynamics of the key performance indicators both for the business and for each branch, identifying the main reasons of variance vs. the planned course of business and delivering information to support decisions and carry out corrective actions.

Profitability analysis: Analyse and evaluating profitability and financial compatibility of investment proposals submitted by domestic and international branches of the business and formulate recommendations for the relevant partners.

Investment analysis: Perform, in coordination with the strategic planning, periodic evaluation of the businesses ensuring use of best-recognized practices; compare internal evaluation with market consensus, and with the value of invested capital for value creation analysis.

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So what are the real benefits for law firms?

Even though most of what I have said you will understand but if I were to break it down as to the benefits I have seen my clients gain:

Proper financial planning ensuring that the law firms are always financially stable;

Giving time for the partner of the law firms to concentrate on what’s really important – getting new clients and ensuring quality of their firm;

Allowing law firms to look into the future and diversify their business, for example by simply setting aside a percentage of profit for investment into anything by law;

Making decisions on currency exchange and when to increase or decrease hourly rates; and

How many fixed fees and rates should a law firm give?

All these are some of the elements are solved by using an OFEM.

So how easy is it to use?

What we normally do is build the model from scratch as every business is different with many individual variables and requirements. Once it is built we hand it over to the law firm’s financial analyst, giving training and brief on:

Spreadsheet design

Assumptions documentation

Linking and not hard-coding

Data entry locations

Ability to use Consistent Formulas

We then follow up once every quarter and provide reports to the partners. We also help them make decisions that need not just an accounting perspective but an economic one too.

Can you give us an example?

Famous historical examples of how proper cost analysis & optimisation can make a difference:

In the 1980s American Airlines meals cost analysis showed a great deal of inefficiency as the airline paid its caterers based on the number of ingredients in the salad: 60 cents for four items and 80 cents for five. The given advice was to promptly remove the salad customary olive as it turned out that the olive was the fifth item. This move saved more than $40,000 a year. In 1994, Southwest Airlines followed another suggestion and removed the company’s logo from rubbish bags, saving the carrier $300,000 a year in printing costs.

Any advice for partners of law firms?

Yes, having a good financial analyst is essential and required but look into getting an economist on board as a consultant too. Law firms have little tangible assets and are generally cash rich, having cash is great but not moving it is not. An economist will advise you not only on how to move it but the most efficient way of spending it at the lowest risk on any idea you have. This is now becoming common practice in law firms across the world especially when law firms such as Gateley are IPOing!

PROFESSIONAL DEVELOPMENT

Legal documents are the most important tool of the legal profession. They are mainly created to advocate, inform, persuade and instruct. Although proper drafting of a legal document takes much time and practice, superior legal drafting skills are essential for lawyers to succeed. Every word in a legal document should accurately reflect the intended meaning and be tailored to the needs of the recipient.

Moreover, legal documents that embody the same research and message would vary greatly in content and tone based on the document’s recipient. For example, a defense writ submitted to the court must defend and persuade. A memorandum to a client must analyze the issues, report the state of the law and recommend an appropriate course of action.

Accordingly, successful lawyers should properly organize their legal documents and create a roadmap by using visual clues to guide their clients. Well-organized legal documents guide the client to the intended goal and promote readability.

Herein below are some main features of legal documents:

• Legal documents contain a great deal of technical terminology, which is unfamiliar to the nonprofessional  (e.g.  waiver,  restrictive covenant, promissory note). Much of this vocabulary is derived from French and Latin. These terms must reflect special meanings. For example, the term “consideration”  refers, in legal English, to  the price that one party pays to the other in return for a service.

• Legal documents are characterized by a conspicuous absence of punctuation. This arose from a widespread idea among lawyers that punctuation was ambiguous and unimportant and that the meaning of legal documents was contained only in the words used and their context. [Inserted: a ][Deleted:,]However, in modern legal drafting, punctuation is used to clarify the meaning.

• Legal documents use couplets and triplets. In legal English, drafters string together two or three words to convey a single legal meaning. Examples of this are “null and void”, “fit and proper”, “due care and attention”, “terms and conditions”, and  “promise, agree and covenant”.

• Legal documents sometimes apply for an unusual word order. At times, the word order appears distinctly strange. For example:  “Before me, John Howards, Notary Public, Mr. Mark Henry, Attorney at Law, appeared and submitted….” There is no single clear reason for this, although the influence of French grammatical structures  is certainly a contributory factor.

• Legal documents contain unfamiliar pro-forms, such as “the same”, “the said”, “the aforementioned” etc. The use of such terms in legal texts is interesting since very frequently they do not replace the noun but are used as adjectives to modify the noun. For example, the said John Smith.

• Legal documents use  pronominal adverbs. Words like  “hereof”, “thereof”,  and  “whereof”  (and further derivatives, including  -at, -in, -after, -before, -with, -by, -above, -on, -upon) are not often used in ordinary modern English. They are used in legal English primarily to avoid repeating names or phrases. For example, the parties hereto, instead of the parties to this contract.

• Legal documents use names with “-er, -or,  and  –ee”  endings. Legal English contains some words and titles, such as employer and employee; lessor and lessee, in which the reciprocal and opposite nature of the relationship is indicated by the use of alternative endings.

• Legal documents use phrasal verbs. Phrasal verbs perform a large role in legal English, as they do in standard English, and are often used in a quasi-technical sense. For example,  parties enter into  contracts,  serve  [documents]  upon  other parties, write off debts, and so on.

Ahmed Shaban Dawood is a highly professional translator in the fields of law, accounting, banking, stock exchange and economics. Ahmed Shaban is the Head of Translation Department at Shalakany Law Office, and a freelance translator for various multinational companies, a legal writing lecturer in a number of highly reputable educational institutes that provide training services to lawyers, accountants and university graduates.

MAIN FEATURES OF LEGAL DOCUMENTS BY AHMED SHAABAN

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LIFESTYLE- DR ESS GUIDE FOR INTE RVIEWS - BR E E ZE A TASTE OF LE BANON- WHY DR IVE A R E NAULT K ADJAR?- STAYING HE ALTHY IN THE OFFICE

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DRESS GUIDE FOR INTERVIEWS

Interviews are very important: the jobs which they entail usually shape our lives and our careers. However, interviews may be stressful and hectic. To make the whole idea of an interview less worrying for the candidates this article will help with how they should be dressed.

BY YOMNA ABOU ZAHRA

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Normally, the first thing the interviewer notices is the appearance, so you have to make the outfit simple, elegant and flawless. Your outfit should fall into the business-formal clothes category, following these tips will help;

Matched suits for both men and women are the basic outfits for an interview, preferably, they have to be in black, grey, or navy blue. All solid colours are acceptable but the darker the colour the more formal it seems. Striped suits or suits with light plaids are also fine but are not to be considered as a first option. Avoid wearing shiny suits, glittery materials do not give the professional look you want to show.

As for the ladies, the bottom of the suit could be either a skirt or pants. We recommend pencil skirts that fall to the knee or below or flare pants for a more of a formal look.

With regards to shirts and blouses, white, ivory or light pink colours would look good with a grey suit. Choose a cotton or a silk blouse and try to avoid lace and ruffles.

As for the shoes, a black, navy blue, brown or maroon are the colours to go for, whatever matches your outfit best. Ladies can hold a small purse matching the shoes. Good luck and always remember to feel confident.

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Lebanon that beautiful country shadowed by the grandeur of the Cedar Mountains brought to the world its ever so tasteful Lebanese cousin and while on the search for a piece of Lebanon here in Egypt our cravings took us all the way to Katameya Heights Golf & Tennis resort poolside restaurant Breeze.

A little piece of Lebanon found its way to Egypt and took us by surprise when we first stepped into Breeze. We were greeted by the friendly restaurant manager that took us to a table situated by a glass wall overlooking the gardens and the swimming pool. Breeze pleasantly delivers the feeling of modernization with a dash of Lebanese ambiance that creates the vibe of sitting in a restaurant at the top of Cedar Mountains.

Indeed the restaurant is well-named “Breeze”, the restaurant is open air with an unbarred façade viewing the pool that lets in an enjoyable the summer breeze that opens the appetite and builds a thrill sensation for what to come next.

FOOD FOOD FOOD

As soon as we were seated Breeze executive Chef came to our table welcoming us, such attention to hospitality gives all the visitors special treatment. The Chef’s passion for food was overwhelming that we wanted to try every item on the menu but unfortunately, there is so much to experience and not enough space for it.

We had a pleasant surprise as the aroma from food raced towards us as the waiter was closing to our table and as he placed the plates before us our senses went into a complete array as the colors and smells were a delight. We were first served two entrées, Rokka cheese salad which is grilled halloumi cheese laid above rocket marinated with somack and olive oil then came the mix baby leaf which are different types of fresh lettuce topped with goat cheese and pistachio and, seasoned with balsamic vinaigrette and olive oil. The entrées were flawless.

BREEZE A TASTE OF LEBANON When the main dishes were served, first we were delighted

with onion marinated lamb kebab with pine nuts served with grilled vegetables, following the kebab came along the grilled chicken fillet marinated in Lebanese spices also served with an assortment of grilled vegetables. To end our indulgence in this amazing cousin the chef served us grilled lamb chops marinated in house special spices, this dish, in particular, had an amazing balance between the taste of the lamb chops and the freshness of the tabula “parsley salad” served alongside it.

After a bright meal, it was time for refreshments, for those of you who drink alcohol Breeze offers traditional cocktails and spirits for all tastes.

If you want a getaway from the noisy streets of Cairo then head to Breeze in Katameya Heights clubhouse and enjoy the stress-free environment that transports you to a serene place of relaxation.

Average price per entrée: 35 EGP

Average price per main dish: 120 EGP

Average price per cocktail: 75 EGP

Ratings: 7/10

Address: Katameya Heights Golf and Tennis Resort, Fifth Settlement, New Cairo.

Telephone: (+202) 2758 0512, (+2) 01013331188

LIFESTYLE

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Built for adventure

KADJAR, Renault’s first C-segment crossover, stands out from the crowd with its fluid, athletic styling. Inside, the focus is on the driver, with high-quality materials adding to the driving pleasure.

An SUV, estate, and saloon car all rolled into one, KADJAR has all the qualities of a true crossover: all-road capabilities thanks to improved traction and significant, 200-mm ground clearance; intuitive modularity and a spacious boot, whose volume of 472 dm3 VDA (527 litres) ranks among the largest; safe and relaxing driving thanks to numerous driving aids.

KADJAR is equipped with the new R-Link 2 tablet offering intuitive and personalized connectivity.

KADJAR is available in 2-wheel drive, with some versions of the latter coming with the park assist system

Based on a technical platform already proven on other Renault-Nissan Alliance vehicles, KADJAR has robustness in its genes.

A KADJAR has a complete range of driving aids

Activated directly from KADJAR’s R-Link 2 menu, these aids are designed to do the following:

Prevent accidents

Blind Spot Warning: this system alerts the driver by a way of a visual signal on the wing mirrors if another vehicle is in their blind spot, ensuring safer overtaking.

Help drivers in low-speed maneuvers

Easy Park Assist: after helping the driver to identify a parking spot by measuring the available space with its sensors, this system takes full control of the steering during parking maneuvers.

WHY DRIVE A RENAULT KADJAR?

BY CAPTAIN MOATAZ ATEF

The central display screen displays all of the information relevant to the maneuver (graphic representation of the maneuver, reversing camera image, and sensors).

Front, rear, and side parking aid: this system assists the driver in completing parking maneuvers without taking over. Ultrasonic sensors provide 360° protection by alerting the driver to any risks of collision.

Reversing camera: when the vehicle is reversing, the camera transmits an image of the rear view onto the touchscreen. This image is accompanied by a mobile and fixed ‘shadow’ of the car as it reverses in order to facilitate the maneuver.

Hill Start Assist: this function is automatically activated for three seconds when pulling away on a gradient of five per cent or steeper. It holds the brakes to prevent the vehicle from rolling backward and to give the driver time to start moving.

Contribute to a relaxed and responsible driving experience

Traffic Sign Recognition with Speed Alert: this system alerts the driver to the regulatory speed limit applicable and suggests it as the default value for the speed limiter.

Cruise control with speed limiter: the cruise control facility maintains the vehicle at a constant speed, while the speed limiter helps the driver keep within a pre-set threshold.

A large range of accessories to satisfy every need and desire

Accessories to make every day driving a breeze

Aluminium roof bars are equipped with a simple system for attaching items such as a bike rack, ski rack, or cargo carrier, thus increasing the vehicle’s load capacity.

Styling that emphasizes a taste for adventure.

Wheel arch extensions that accentuate the vehicle’s solid stance and reinforce its robust appearance. The front and rear wheel arches are protected from scratches and dents from other doors.

Engine and performance

In terms of petrol engines, the KADJAR range is available with the Energy TCe 130 hp power plant, mated to a six-speed manual gearbox.

Maintenance is kept to a minimum; The low fuel consumption levels significantly reduce running costs.

Particular attention was paid to the engine’s acoustic performance. It produces a refined sound, with no wheezing sound at high revs.

KADJAR also features an Eco mode for practical everyday usage that significantly reduces consumption by controlling the vehicle’s performance while keeping it at an acceptable level.

Driving a KADJAR is a real joy, Just try it.

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We all know that the office has several temptations to keep you from being healthy. Your colleague that always offers you chocolate, the coffee machine where sugar is ever so available and of course the fact that you are sitting at your desk from 9 am to 9 pm.

I’m here to give you a few healthy tips to follow that will help you lose weight and stay healthy.

Have Breakfast

As you know breakfast really is the most important meal of the day. Most of us skip it as we are in a hurry to get to the office. Breakfast helps in increasing your me-tabolism and keeps your sugar cravings away. Always start the day with a high protein breakfast such as eggs with wholegrain bread. Skipping breakfast can increase your chance of obesity by four times.

Cut the sugar

Sugar is available everywhere in the office and it is very tempting to have it especially when you’re hungry but did you know that one teaspoon of sugar has 16 calo-ries. Imagine that you consume 4 teaspoons of sugar a day that’s 62 calories that you can do without.You can substitute sugar with stevia or Algarve syrup.

Drink water

Sodas are available everywhere but one can of soda has about 10 teaspoons of sugar in it. Drinking water not only keeps you hydrated and flushes out your toxins, it also helps increase your metabolism and stops you from feeling fatigued.

Remember to have a glass as soon as you wake up in the morning and have two glasses before each meal.

Healthy snacks

Forget your colleague that offers you chocolate, pack healthy snacks from home such as cucumbers, carrots, whole grain sandwiches with turkey breast, tuna or feta cheese.

Also, don’t forget to get your fruit intake, so add an apple or some freshly cut cantaloupe.

Move!

Even if you don’t have time to move after office hours, try to give yourself 10 min every hour and a half to move around the office. Instead of using the elevators take the stairs as much as you can.

STAYING HEALTHYIN THE OFFICE

For more information visit https://www.facebook.com/DrSherineElShimiNutrition/

Or call on +201091686553

BY DR. SHERINE ELSHIMI

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