Despite legal procedures, dispute settlement remains a significant problem in Egypt. Egypt acceded to the International Convention for the Settlement of Investment Disputes in 1971. It is a member of the International Center for the Settlement of Investment Disputes (ICSID), which provides a framework for arbitration of investment disputes between the government of the host country and a foreign investor from another member state, provided that the parties agree to such arbitration. Without prejudice to Egyptian courts, Law 8 of 1997 recognizes the right of investors to settle disputes within the framework of bilateral agreements, the ICSID or through arbitration before the Regional Center for International Commercial Arbitration in Cairo. The Investment Treaty, allow for the possibility of an investor to take a dispute with a party directly to binding third-party arbitration.
Egypt's Dispute Settlement Law 27 of 1994 and its 1997 amendment provide for the arbitration of domestic and international commercial disputes and limited challenges of arbitration awards in court. Law 27 was amended in 1997 to include disputes between public enterprises and the private sector. A special order is required to challenge an arbitration award. The law consolidated and streamlined various confusing and conflicting rules that left the enforcement of international and domestic awards in doubt.
Egypt adheres to the 1958 New York Convention on Enforcement of Arbitrary Awards; the 1965 Washington Convention on the Settlement of Investment Disputes between States and the Nationals of Other States; and the 1974 Convention on the Settlement of Investment Disputes between the Arab States and Nationals of Other States.
Resolution of cases can involve lengthy court proceedings and negotiations. We recommend that companies put clauses specifying binding international arbitration in their commercial agreements. |
