Kingdom Holding has reached an agreement with the Egyptian government over disputed agricultural land.
Kingdom Holding Company, controlled by Prince Alwaleed Bin Talal will retain control of the 25,000-acre (10,000 hectare) Toshka land plot it is developing for agriculture, but will waive rights to another 75,000 acres (30,000 hectare), the company said in a statement released yesterday.
The Kingdom Company for Agricultural (KADCO) development is a wholly-owned subsidiary of Kingdom Holding.
Egyptian prosecutors charged that Kingdom's deal for the land violated the country's laws on tenders and auctions. Several developers have been accused of receiving insider deals from the government of former President Hosni Mubarak, who was forced from office in February.
Kingdom announced Sunday that it had reached "an amicable settlement plan with the Egyptian Ministry of Agriculture and Land Reclamation that ensures legal and financial rights for each party".
Kingdom Holding acquired a total of 42,000 hectares of desert land in 1998. Under the umbrella of its KADCO subsidiary, the company is using water from the Nile Rile river to irrigate and grow crops on the land.
The first phase of the project is focused on grapes, melons, onions and green beans, according to the KADCO Web site.
The settlement deal was reached through a meeting of a "joint committee" with the ministry, Kingdom said. the committee has drafted a memorandum of understanding for submission to the Egyptian cabinet and the KHC board of directors for approval," Kingdom said.
