Will investors shell out cash for Egyptian citizenship?

The mark of desperation when a country decides to sell its citizenship:

The Egyptian government has recently proposed a draft law to amend the country’s nationality law. It would give investors the right to apply for citizenship after living and investing in Egypt for five years. The bill has caused controversy and dispute both within parliament and among the public. While some Egyptians argue it will encourage investment and help the country’s financial recovery, others maintain that nationality is not something that should be sold.

The draft law was submitted to the Cabinet by Egyptian economist Sameh Sidqi earlier this month. It would amend Presidential Decree No. 89 of 1960 on Entry, Residence and Exit of Foreigners and Law No. 26 of 1975 Concerning Egyptian Nationality. The government announced Aug. 2 that it was being discussed in the Egyptian State Council.

Speaking to Al-Monitor, Sidqi said, “The bill grants Egyptian nationality to foreigners who deposit $500,000 [in foreign currency] in an Egyptian bank. If nationality is granted, the sum may not be refunded. The foreigner shall obtain nationality within five years, but if the application is rejected, the sum may be retrieved.”

He said that approving this bill “requires amending the clause related to nationality in the Egyptian Constitution, as well as another clause of the Investment Law, so that any investor who deposits the required sum may be granted Egyptian nationality if he or she meets the conditions set by the Cabinet.”

Sidqi argued that more than 5 million expatriates now reside in Egypt, and they include Iraqis, Syrians and Libyans, in addition to 4 million Sudanese living in Egypt since the era of Sudanese President Gaafar Nimeiri. Like Egyptians, these expatriates benefit from subsidies on oil, electricity, bread and other food supplies.

“Such legislation is applied in many countries that encourage foreign investment, including the United States and Canada,” Sidqi added, indicating that he had previously presented this proposal to the Dubai government when working as an economic adviser during the international financial crisis a few years ago. Although the proposal was initially approved, he said, the number of expatriates that would be granted Emirati nationality exceeded the Emirate’s native population, leading the Dubai government to reject the proposal.

Sidqi pointed out that at least 100,000 of the foreigners living in Egypt with no criminal records wish to obtain Egyptian citizenship. This means that the state could potentially benefit from billions of dollars without recourse to loans subject to terms from the International Monetary Fund (IMF).

Egypt is currently negotiating a $5 billion loan with the IMF in order to cover growing budget deficits as a result of the decline in tourism and tourism revenues.

Sidqi further said that his proposal has already been approved by the Cabinet and has now been submitted to the State Council and parliament for ratification.

According to Sidqi, the opposition claims that the bill would grant citizenship to anybody in return for money. However, this not the case, he argued, as competent authorities shall conduct background checks on all applicants, including their relatives up to a fourth-degree kinship.

Sidqi added that to obtain Egyptian nationality, applicants must submit a certified list of all the countries they traveled to in the past 10 years, noting that the Egyptian government reserves the right to withdraw citizenship, without prior notice, from any applicant convicted of a crime against honor, spying for a foreign country against Egypt or if the applicant obtained another citizenship.

Source: Will investors shell out cash for Egyptian citizenship?