Parliament housing committee approves government-drafted bill on reforming rent law
Parliament's Housing Committee approved the draft amendment of the government-drafted bill on the old rent law on Tuesday, extending the termination period for contracts subject to the law for residential purposes to 7 years instead of 5.
The Housing Committee's approval is preliminary, and the draft will subsequently be submitted for a final vote in a parliament's plenary session expected to be held later this month.
The proposed amendments to the rent laws 49/1977 and 136/1981 have recently sparked a heated social debate. Landlords sought to minimize the termination period and increase rent, while tenants pressed for the opposite.
The Housing Committee passed a 10-article draft, the first nine of which tackle the regulations governing the relationship between landlords and tenants, which have been at loggerheads since a ruling by the Supreme Constitutional Court (SCC) issued last November.
The ruling decided that the 7 percent flat rate in the Old Rental Law for residential properties was unconstitutional and called on the Egyptian parliament to amend the law.
Article 2 of the new draft stipulates that the termination period of rental contracts for residential purposes will be seven years after the law comes into effect and 5 years for non-residential purposes unless an earlier termination is mutually agreed upon.
Article 3 stipulates that each governor must form a committee to categorize areas containing rented residential properties into premium areas, middle-class areas, and economic areas.
The classification will consider geographic location, including the area's nature and street, construction quality, utilities available, roads, transport networks, and access to health, social, and educational services.
Committees must complete their tasks within three months of the law's enactment, which can be extended once by a Prime Minister's decision. The governor shall publish the final results in the Official Gazette and notify local administrations.
Article 4 stipulates that rent in premium areas will be 20 times the current legal rent, with a minimum of EGP 1,000, and 10 times in middle-class areas, with a minimum of EGP 400. In economic areas, the rent will be 10 times with a minimum of EGP 250.
The article also stipulates tenants shall pay EGP 250 monthly until the classification committees complete their work. Once the governor's decision is published, tenants must pay any rent differences due in monthly installments equal to the accrual period.
Article 5 stipulates that rent for premises rented to natural persons for non-residential use shall be 5 times the current legal rent.
Article 6 stipulates that rents determined under Articles 4 and 5 shall increase annually by 15%.
Article 7 stipulates that tenants or their legal successors must vacate the premises at the end of the rental term specified in Article 2 if the tenant or successor leaves the premises closed for more than one year without justification or if the tenant or successor owns another usable unit for the same purpose as the rented property.
In case of refusal to vacate, the landlord may seek a court order from the summary judge for eviction without prejudice to the right to compensation.
The tenant may also file a separate civil case, which does not suspend the summary judge's decision.
Heated debate
The Housing Committee has held several hearings on the amendments, and Mustafa Abdel-Rahman, head of the Landlords Coalition, rejected those regulating rent increases and the duration of the lease contract.
He proposed a three-year transitional period during which tenants would be obliged to pay market rents or be evicted from their units.
He also suggested that during the transitional period, monthly rents for units in low-income districts will not be less than LE2,000, LE4,000 for units in average-income districts, and LE8,000 for high-class districts.
Lawyer and representative of the Tenants Coalition George Makram warned earlier that passing the government's amendments would cause massive social harm.
He directly referred to the five-year transitional period, now extended to seven in the final draft.
Makram insisted that the government's new rent bill seriously threatens national security and social peace.
According to Abdel-Hamid Sharafeddin, advisor to the head of the Central Agency for Public Mobilisation and Statistics, seven percent of Egypt's buildings are regulated by old rent contracts, compared to 15 percent in the 2006 census.
Sharafeddin explained that approximately three million units, including 1.8 million residential units, are subject to old rents.
Follow us on:
Facebook
Instagram
Whatsapp
Short link:
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily News Egypt
2 hours ago
- Daily News Egypt
First phase of property tax relief to roll out in Q1 of FY26: Finance Minister
Minister of Finance Ahmed Kouchouk announced that the first phase of Egypt's property tax relief measures will be implemented in the first quarter of the upcoming fiscal year. In parallel, the Cabinet is expected to finalise a new customs facilitation package aimed at enhancing foreign trade and encouraging investment in the near future. Speaking during a press conference, Kouchouk expressed appreciation for both new and existing taxpayers whose engagement contributed to the success of the government's initial tax relief initiative. He also thanked the employees of the Egyptian Tax Authority (ETA) for their responsiveness and effective implementation of the reform programme. The Minister underscored that the reform path is grounded in trust-building, partnership, and providing certainty to the business community through continuous improvement of tax services. He highlighted the strong performance of the first tax relief package, describing it as a positive step toward rebuilding confidence between the state and taxpayers. According to Kouchouk, the Ministry received 110,000 requests to close long-standing tax files, alongside 450,000 amended or newly submitted tax returns under the relief measures. Notably, 53,000 new taxpayers voluntarily joined the formal tax system—an encouraging sign of growing compliance and engagement. He added that the encouraging response from the business community is motivating the government to introduce further relief measures in the near term to address persistent on-the-ground challenges. Kouchouk reaffirmed the Ministry's commitment to dialogue with the private sector, incorporating its proposals to build a fairer, more transparent tax environment. 'We view taxpayers as essential partners,' he said, 'and helping them succeed is key to supporting their growth and expansion.' Kouchouk also pointed to a significant 36% increase in tax revenues over the past 11 months, representing an additional EGP 500bn in collections—achieved without introducing any new tax burdens. These additional funds, he noted, have been directed toward priority areas including healthcare, education, and social protection. The forthcoming customs facilitation package is expected to further streamline import-export procedures, reduce bottlenecks at ports, and support the government's broader goals of boosting competitiveness and attracting foreign investment.
Daily News Egypt
2 hours ago
- Daily News Egypt
Being strategic partners, sky is limit for India-Egypt relations: Indian Ministry of External Affairs
New Delhi–In an era marked by rapidly shifting geopolitical dynamics, India is asserting an increasingly influential role—not only as an economic powerhouse but also as a trusted partner in international development and regional stability. Daily News Egypt, invited to a high-level media briefing held at the Indian Ministry of External Affairs in New Delhi, joined a select group of journalists from North and Sub-Saharan Africa to gain exclusive insight into India's expanding strategic vision. At the heart of that vision lies a strengthening partnership with Egypt, a bilateral relationship that has recently witnessed unprecedented momentum and diversification. Alongside its deepening ties with Egypt, India is also reinforcing its age-old connections with the African continent through a distinct model of needs-based cooperation rooted in shared history, mutual respect, and inclusive development. A Flourishing Strategic Partnership with Egypt Arun Kumar Chatterjee, Secretary (Consular & Diaspora) in the Indian Ministry of External Affairs, described India and Egypt as strategic partners, highlighting 2023 as a landmark year in the trajectory of bilateral ties. He recalled the historic visit of Egyptian President Abdel Fattah Al-Sisi to India in January 2023, during which he served as the chief guest at India's Republic Day celebrations—an honour reserved for the closest of allies. Later that year, Indian Prime Minister Narendra Modi paid an official visit to Cairo in June 2023, where he and President Al-Sisi signed a joint declaration to elevate relations to the level of a strategic partnership. President Al-Sisi returned to India again in September to participate in the G20 Summit hosted by New Delhi. 'This level of engagement is unprecedented and reflects a strong, mature, and strategic relationship between our two countries,' Chatterjee noted. 'Being strategic partners, you can imagine—the sky is the limit.' On the economic front, he reported that the current trade volume between India and Egypt stands at approximately $6bn. 'Sixbn is a promising figure, but we are not content. We aim to double this number in the coming years,' Chatterjee said, pointing to the considerable untapped potential in sectors such as manufacturing, infrastructure, agriculture, and digital technology. He further noted that Indian investments in Egypt are currently estimated at around $5bn, adding that both governments are exploring major developmental projects to further deepen bilateral economic cooperation. Shared Values and Solidarity Amid Global Crises Secretary Chatterjee also expressed deep appreciation for Egypt's solidarity in the wake of a terrorist attack on Indian tourists in Kashmir. He highlighted a phone call from President Al-Sisi to Prime Minister Modi, during which the Egyptian leader conveyed Egypt's full support and condolences. 'We were extremely grateful to all our friends and partners who stood with us in the fight against terrorism. Egypt's expression of solidarity was both timely and meaningful,' Chatterjee affirmed. Addressing more recent developments, Chatterjee commented on the Israeli strikes in Iran, saying that India had issued a formal statement expressing 'deep concern' over the escalation. He emphasised that India maintains 'very good relations with both Iran and Israel,' and continues to monitor the situation closely, particularly with regard to the safety of its large diaspora communities in both countries. 'We have advised all Indian nationals in these areas to exercise care and caution and stay safe,' he added. India's Position on Gaza and the Israeli-Palestinian Conflict Turning to the ongoing war in Gaza, Chatterjee reiterated India's principled stance in favour of peace, diplomacy, and humanitarian protection. 'India has consistently expressed concern over the loss of civilian lives and the urgent need to uphold humanitarian obligations,' he said. He underscored India's support for international efforts to deliver aid to civilians in Gaza, stating: 'India has provided humanitarian assistance both bilaterally and through UN channels. We have also called for a safe, sustained, and timely supply of humanitarian assistance to those affected.' On the broader conflict, he reaffirmed India's long-standing position. 'India has always supported a negotiated two-state solution to the Israeli-Palestinian issue—one that leads to the establishment of a sovereign, independent, and viable Palestinian state, living side by side with Israel in peace and security, within recognised and secure borders,' Chatterjee stressed. 'We believe that dialogue and diplomacy remain the best way forward, and our leaders have remained in close contact on this matter,' he added. India's Enduring Commitment to Africa Moving beyond the Middle East, Chatterjee also detailed India's deep and enduring partnership with Africa, which he described as 'millennia-old,' rooted in 'deep historical linkages, cultural exchanges, and vibrant people-to-people contacts.' He highlighted the presence of a 3.5 million-strong Indian diaspora in Africa, describing it as a 'living bridge' that contributes significantly to social and economic development across the continent. India's engagement with Africa, he explained, is framed by Prime Minister Modi's '10 guiding principles,' which emphasise Africa's own development agenda. 'Our approach is needs-based, inclusive, and designed to empower local communities, build capacities, and ensure long-term sustainability,' he said, drawing a clear contrast with extractive or exploitative models of cooperation. Chatterjee noted that India has significantly expanded its diplomatic footprint in Africa in recent years, establishing 17 new embassies and high commissions, bringing the total number of Indian missions on the continent to 46. Investing in People, Infrastructure, and Innovation India has also made education and capacity-building cornerstones of its Africa engagement. Over the past decade, more than 37,000 African professionals have been trained in India through the Indian Technical and Economic Cooperation (ITEC) and Indian Council for Cultural Relations (ICCR) programmes. Flagship educational institutions such as the Indian Institute of Technology in Zanzibar, the National Forensic Sciences University in Uganda, and Entrepreneurship Development Centres in Rwanda stand as tangible outcomes of this partnership. In addition, India has supported the establishment of numerous IT centres across the continent. On the infrastructure front, Chatterjee noted that India is currently involved in more than 200 development projects in Africa in sectors such as transportation, energy, agriculture, and water resource management. Over the last ten years alone, India has extended over $700 million in grant assistance to African countries. A Trusted Economic and Technological Partner Economically, India is now Africa's fourth-largest trading partner, with bilateral trade volumes nearing $100bn. Indian investments across the continent have reached approximately $75bn, spanning sectors including information technology, pharmaceuticals, automotive manufacturing, mining, and banking. India, Chatterjee noted, was also the first developing country to offer duty-free access to exports from Least Developed Countries (LDCs) through its Duty-Free Tariff Preference (DFTP) scheme, introduced in 2008. He expressed optimism about the African Continental Free Trade Area (AfCFTA), describing it as a 'game-changer' with immense potential to integrate African economies more fully into the global trade system. India, he said, continues to advocate for stronger African representation in international institutions and supports Africa's participation in multilateral initiatives such as the International Solar Alliance, the Global Biofuel Alliance, the Coalition for Disaster Resilient Infrastructure, and the International Big Cat Alliance. 'As a trusted technology partner, India is ready to share its digital innovations like India Stack,' Chatterjee stated, citing examples of African nations already utilising UPI-based digital payments and national ID systems to promote financial inclusion. He added that India is also collaborating on the use of space technologies for precision agriculture, weather forecasting, and disaster preparedness. India's Global Ambition Rooted in Shared Growth In closing, Chatterjee reflected on India's internal transformation, noting its rise to become 'the world's fourth-largest economy,' driven by inclusive growth and digital innovation. From domestic development to global partnerships, he said, India remains guided by the ancient ethos of Vasudhaiva Kutumbakam—'The world is one family.'
Daily News Egypt
2 hours ago
- Daily News Egypt
Egypt's Al-Sisi tells Iran's Pezeshkian Israeli escalation threatens region
Egyptian President Abdel Fattah Al-Sisi told his Iranian counterpart Masoud Pezeshkian in a phone call that ongoing Israeli escalation against Iran poses a serious threat to the security and stability of the Middle East. According to a statement from the Egyptian presidency, Al-Sisi firmly rejected the escalation during the call, warning that it comes at a particularly critical and turbulent time for the region. Al-Sisi stressed Egypt's call for an immediate ceasefire and for negotiations to resume to find a sustainable and peaceful resolution to the crisis. He emphasised the importance of de-escalation and preventing further violence. 'There is no military solution,' Al-Sisi was quoted as saying. The Egyptian president also reaffirmed his position that lasting regional stability can only be achieved through a two-state solution and the establishment of an independent Palestinian state, in line with international legitimacy. For his part, President Pezeshkian expressed his appreciation for Egypt's stance, which he described as wise and balanced. He agreed on the urgent need for a just, comprehensive and final resolution to the Palestinian cause that would save lives and restore peace in the region, the statement added.
