Egypt court scraps land sale to Palm Hills

An Egyptian court ruled on Tuesday that the sale of state land to Palm Hills Development (PHD), the country's second-biggest listed developer, was illegal and scrapped the contract. A judicial panel said in March the sale was illegal because it was priced too cheaply and was not publicly auctioned. The judicial body decision has in the past influenced court verdicts.

Shares in Palm Hills declined 5.2 per cent by 0857 GMT, while Egypt's benchmark index was down 0.2 per cent. The court's ruling is in response to a suit filed by Engineer Hamdy Fakhrany, concerning the state's sale of 960,000 square metres of land in a Cairo suburb.