Cambodia urged to allow foreign ownership of property
Wednesday, 5 September 2007
PHNOM PENH, Sept 4 (AFP): Cambodia's private sector today urged the government to allow foreign ownership of certain properties like apartments or factories, saying a liberalised real estate market would spur economic growth.
Under the current rules, foreign property investments must be made in the name of a Cambodian national, and many are unwilling to risk losing their assets to unscrupulous local partners.
While Cambodia's investment law was amended in 2005 to allow foreign ownership of permanent fixtures, the legislation has yet to be implemented and the initiative has floundered.
"There are several reasons for urgent action," said Bretton Sciaroni, an American lawyer who serves as the chairman of the International Business Club and was speaking today at a meeting between the private sector and government.
The measure would further develop Cambodia's real estate market, taking advantage of a current boom and making the country competitive with its neighbours, which allow foreigners to own apartments or condominiums.
Vast new building projects have bloomed in the past few years, including a number of sprawling satellite cities worth billions of dollars that when constructed will radically alter the face of the capital.
"This is already a sector of the economy that is dynamic, but foreign ownership of apartments, condominiums and other such structures on the land will help spur further economic growth," Sciaroni said.
"Such a regulatory development will provide a dramatic indication that Cambodia has an investor-friendly environment," he added.
After decades of turmoil, Cambodia has emerged as a rising economy in the region-posting an average of 11 per cent growth over the past three years on the back of strong tourism and garment sectors.
Under the current rules, foreign property investments must be made in the name of a Cambodian national, and many are unwilling to risk losing their assets to unscrupulous local partners.
While Cambodia's investment law was amended in 2005 to allow foreign ownership of permanent fixtures, the legislation has yet to be implemented and the initiative has floundered.
"There are several reasons for urgent action," said Bretton Sciaroni, an American lawyer who serves as the chairman of the International Business Club and was speaking today at a meeting between the private sector and government.
The measure would further develop Cambodia's real estate market, taking advantage of a current boom and making the country competitive with its neighbours, which allow foreigners to own apartments or condominiums.
Vast new building projects have bloomed in the past few years, including a number of sprawling satellite cities worth billions of dollars that when constructed will radically alter the face of the capital.
"This is already a sector of the economy that is dynamic, but foreign ownership of apartments, condominiums and other such structures on the land will help spur further economic growth," Sciaroni said.
"Such a regulatory development will provide a dramatic indication that Cambodia has an investor-friendly environment," he added.
After decades of turmoil, Cambodia has emerged as a rising economy in the region-posting an average of 11 per cent growth over the past three years on the back of strong tourism and garment sectors.