Court rules Omar Effendi privatization null

The Supreme Administrative Court has nullified the privatization of the Omar Effendi department stores, said lawyer Khaled Ali, who has been defending the return of the stores to the state on Thursday.

The court confirmed a lower court’s previous ruling to reverse the store’s privatization.  

In 2006, the Saudi company Anwal acquired 90 percent of Omar Effendi’s shares at LE504 million. The sales of the company — considered to be one of Egypt’s largest middle-class retailers — has been contested on the basis of its acquisition at less than its market value, mass layoffs and the overall slowing down of the operation. Anwal’s CEO Gamil al-Qanbeet has been accused of being interested in Omar Effendi’s assets, rather than its operation.

The final court ruling challenged Qanbeet’s appeal as well as appeals presented by banks involved in the transaction, including Bank Aude and the Ahli United Bank.

Economic rights advocates, including Ali and others, have repeatedly slammed the privatization of Omar Effendi and other state properties, particularly factories. Criticisms of the privatization process focus on unethical and illegal procedures surrounding the selling process, including profiteering and labor issues.