CAIRO, EGYPT (CNN) — A heated debate has emerged surrounding the old rent law in Egypt following discussions in the parliament regarding amendments proposed by the government. The crux of the disagreement lies in the proposed liberation of contracts between landlords and tenants after a transitional period of five years, which many fear could lead to the displacement of numerous tenants and a significant increase in rental prices during this period.
The government has asserted that it will not favor one party over another and that no evictions will occur arbitrarily; instead, they promise that any displacements will only happen after suitable alternative housing is provided, in accordance with a specific timetable that aligns with the state’s capabilities.
The controversy over the old rent law traces back to a ruling from the Supreme Constitutional Court in November 2024, which deemed the first paragraphs of Articles 1 and 2 of Law No. 136 of 1981 unconstitutional. These articles had previously guaranteed annual rent increases for residential properties. The court mandated that the ruling be implemented immediately after the current legislative session of the House of Representatives concluded.
In response to the court's ruling, the House of Representatives began to discuss amendments to the old rent law. However, the government requested a postponement of these discussions so that it could present a draft law that aligns with the new amendments. Last week, two draft laws were submitted, proposing a 20-fold increase in rental values for residential properties, which would set minimum rents at 500 Egyptian pounds ($9.87) for units in villages and 1,000 pounds ($19.74) for those in cities. This increase would occur annually at a rate of 15%, with existing rental contracts expiring five years from the implementation date, obligating tenants to vacate their units.
During the initial discussions in parliament, several representatives voiced their objections to the government’s draft law. Representative Mustafa Bakri criticized the proposal for addressing the crisis with a narrow perspective, claiming it threatens the stability of millions of tenant families. He called for a comprehensive dialogue aimed at achieving social justice.
Minister of Public Business Sector Ashraf El-Sharqawi clarified that the state would begin accepting applications for cases requiring compensation based on fair criteria that consider social factors, family size, income, and geographical location. He emphasized that the provision of housing units would follow a specific timetable aligned with the state’s resources and citizen needs, ensuring that any eviction would only occur after a suitable alternative has been provided.
Currently, there are approximately 1.879 million old rent housing units in Egypt, accounting for 7% of the total housing stock, which stands at around 42 million units, according to the Central Agency for Public Mobilization and Statistics in 2017. Muhammad Al-Fayoumi, head of the Local Administration Committee in the House of Representatives, noted that the parliament is actively discussing the draft laws with broad participation from ministers, housing experts, and human rights advocates.
Al-Fayoumi stated that the parliament aims to listen to various stakeholders to develop legislation that balances the interests of all parties and maintains societal stability. Meanwhile, Mustafa Abdel Rahman, head of the Federation of Old Real Estate Owners, expressed disappointment with the government’s amendments, calling for a new law that focuses on three key areas: a transitional period of only three years with rental values reaching 2,000 pounds ($39.47) in popular areas, 4,000 pounds ($78.94) in middle-class areas, and 8,000 pounds ($157.88) in upscale areas; liberating the rental relationship between landlords and tenants; and allowing landlords to reclaim units after the transitional period if no mutual agreement is reached.
Abdel Rahman urged parliament to draft a new law that protects landlords' rights, noting that the number of units rented under the old rent law is under two million, a small fraction compared to the total housing units in Egypt, which has a population exceeding 100 million.
In a parallel development, Egypt has also made significant strides in its labor legislation. President Abdel Fattah El-Sisi recently approved a new labor law, marking a pivotal moment in the country’s legislative history. This law aims to enhance the work environment, increase protections for employee rights, and create a more equitable balance between the interests of workers and employers.
Many citizens are eager to know when this law will take effect. According to Article 10 of the new law, its provisions will come into force on the first day of the month following a 90-day period from its publication in the Official Gazette. Given that the law was published on May 5, 2025, it will officially take effect in September 2025.
Additionally, the provisions concerning specialized labor courts will be implemented starting from October 2025, allowing for a more streamlined resolution of labor disputes.
MP Adel Abdel Fadil, head of the Manpower Committee in the House of Representatives, confirmed that the new law does not require an executive regulation but rather the issuance of ministerial decisions to organize some of its provisions within 90 days of activation. Until these decisions are issued, existing regulations will remain in effect, ensuring a smooth transition to the new system.
The new labor law introduces several benefits for employees, including the right to an annual allowance of no less than 3% of the basic wage, which is expected to improve workers' wages over time. It also aims to enhance job stability and restrict arbitrary dismissals, while creating precise regulations for employment contracts and the rights of non-organized workers.
Moreover, the law emphasizes equal opportunities in the workplace and establishes specialized labor courts to expedite the resolution of disputes and reduce litigation times. The anticipated effects of this law are expected to significantly impact Egypt's social and economic landscape, contributing to positive developments in the labor market.
Overall, the new labor law represents a major advance in Egyptian legislation, aiming to solidify the foundations of justice in employer-employee relationships and ensure a clear and fair working environment. As the law takes effect in September, millions of workers are looking forward to enhanced job security and clarity in their rights, signaling a new era of stability and progress for the community.
