Egypt a ‘central hub’ for arbitration in the MENA region

Influence of the Egyptian legal system

Egypt’s prominence in international arbitration is rooted in the long-standing influence of its legal system on the wider MENA region. The Egyptian legal framework forms the basis for the legal systems of neighbouring countries, and its court practices and arbitration significantly influence arbitration practice in the region. The Egyptian judiciary is generally viewed as arbitration-friendly and attentive to international arbitration trends.

The Egyptian Arbitration Law (EAL) is principally the UNCITRAL Model Law, with some variations, providing familiarity for international arbitration users and practitioners.

CRCICA, Egypt’s leading arbitral institution, recently adopted new rules, which came into effect on 15 January 2024. The new rules strengthen Egypt’s position as an international arbitration hub for the MENA region by incorporating modern practices such as online arbitration filing, remote hearings, consolidation of arbitrations, early dismissal of claims, multiple contracts, third-party funding and emergency arbitration. The new rules also emphasise procedural efficiency. For example, they allow parties to send notices and other communications electronically, and enable the merging of pending arbitrations into a single one, based on defined criteria. The rules clarify that an arbitral tribunal can dismiss claims that are manifestly without legal merit at an early stage of the proceedings. An expedited procedure has also been introduced as part of the update.

Read more of our report on international arbitration in 2025

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• New digital services and legal developments boost international arbitration usage in Qatar
• Egypt a ‘central hub’ for arbitration in the MENA region
• Investment disputes continue to drive international arbitration developments in Africa
• Southern African states form harmonised arbitration framework
• UK arbitration developments continue to enhance position as key dispute resolution jurisdiction
• French arbitration law evolves ahead of 2025 reforms
• Germany to become more attractive for international arbitration proceedings
• Singapore continues to rise as an international dispute resolution hub
• Continued improvements in international arbitration driven by new HKIAC rules and case law
• India continues work to modernise arbitration landscape
• Significant developments in Japan’s arbitration landscape
• South Korea strengthens international arbitration framework
• China continues to improve arbitration process efficiency and effectiveness
• Australian court rulings strengthen pro-arbitration stance and expand scope of arbitration
• Construction projects and contracts must consider sanctions risks
• New types of M&A disputes will drive up international arbitration cases
• Growing demand for expertise in cryptocurrency related arbitration in 2025
• Major changes crystallising in investor-state dispute settlement
• What the future holds for mediation in investor-state dispute settlement

A new rule ensures the scrutiny of the award as to its form to avoid procedural issues. Another addition specifies the law applicable to the arbitration agreement and provides that it shall be the law of the place of the arbitration, unless the parties agree otherwise.

As part of CRCICA’s effort in implementing its new arbitration rules, the centre has appointed several prominent arbitration practitioners from leading jurisdictions like London and New York to its advisory committee. This committee, now representing 10 nationalities, is responsible for providing reasoned decisions on issues such as arbitrator challenges and consolidation requests.

The Egyptian Centre for Arbitration and Settlement of Non-Banking Financial Disputes (ECAS), established in 2019, has seen rapid developments since its inception. ECAS specialises in disputes arising from non-banking financial transactions, particularly between shareholders, partners or members of companies and entities that work in non-banking financial markets.

In October 2024, ECAS became one of the first Egyptian arbitration institutions to adopt the Equality Representation in Arbitration (ERA) Pledge, enhancing and encouraging women's participation in arbitration.

Boosting investor confidence and foreign direct investment

Egypt has made significant strides in creating a more favourable environment for foreign direct investment (FDI). Increased investor confidence and high real interest rates have attracted foreign portfolio investment, leading to a rise in foreign reserves. The government remains committed to enhancing the investment climate, as evidenced by the adoption of a new model bilateral investment treaty (BIT) in 2022. This BIT includes provisions for third-party funding in arbitration proceedings, ensuring its responsible and ethical use. It also introduces more stringent conditions for ICSID arbitration and significantly amends the dispute resolution mechanisms of previous BIT models.

Strengthening bilateral and multilateral agreements

Egypt is a party to over 100 BITs, including a recent agreement with Saudi Arabia signed in 2024. This agreement aims to encourage and protect mutual investments, signalling a new phase of strategic cooperation between the two nations. Egypt is also a member of the World Trade Organization (WTO), the African Continental Free Trade Agreement (AfCFTA), and the Greater Arab Free Trade Area (GAFTA). In many sectors, there is no legal distinction between foreign and domestic investors, although certain sectors like upstream oil and gas and real estate require joint ventures.

Growing Egypt’s arbitration community and key events

As the international arbitration community continues to grow rapidly in Egypt and the MENA region, Cairo has played host to an increasing number of important industry events and conferences. The International Chamber of Commerce (ICC), for example, launched its first Egyptian Arbitration Day in May 2024, highlighting Egypt's growing prominence in the arbitration field. Meanwhile, the biannual Sharm El Sheikh IX Conference on The Role of State Courts in International Arbitration has become an important event for legal professionals globally. The most recent conference, in December 2024, attracted hundreds of participants and speakers from various countries, underscoring Egypt's growing importance and role in shaping the landscape of international arbitration.

Potential reform to Egyptian arbitration law

Investors and private companies entering into contracts with a public authority in Egypt must be aware of specific issues regarding arbitration agreements in administrative contracts. The EAL requires that arbitration agreements in administrative contracts be approved by the competent minister, or their equivalent, with no delegation permitted. This requirement is a matter of public policy. Without this approval, the arbitration agreement is null and void.

The High Committee for Arbitration and International Disputes – established in 2019 within the Council of Ministers – oversees arbitration and dispute resolution processes involving the state. The committee’s authority binds ministries, public entities, state-owned companies and companies with state participation. Contracts with foreign investors or those including arbitration clauses must be reviewed by the committee

The Committee also reviews pending international arbitration cases involving the state. However, its role does not hinder investor-state arbitration involving Egypt, as it respects the provisions of the Investment Law and valid BITs or multilateral treaties concluded by Egypt.

In March 2022, the Deputy Minister of Justice for Arbitration and International Disputes issued a decree for establishing a committee to propose amendments to the EAL. These discussions are still ongoing.

These developments reflect Egypt's proactive approach to improving its investment climate and arbitration framework. The government's efforts to attract FDI, coupled with its commitment to international arbitration standards, position Egypt as a favourable destination for investors and a key player in the global arbitration community.

Key cases in Egyptian arbitration

Egypt defeats gas distribution claims

Egypt has announced a significant legal victory, having defeated a pair of treaty claims worth around US$190 million brought by a group of Emirati and Canadian claimants over a terminated natural gas distribution concession. In an award handed down on 2 July 2024, an ICSID tribunal chaired by Gabrielle Kaufmann-Kohler, with fellow Swiss arbitrator Charles Poncet and Mexico’s Claus von Wobeser, dismissed the first claim. This claim was brought under Egypt’s bilateral investment treaty with the UAE by Emirati company CTIP Oil & Gas.

On the same day, a Paris-seated UNCITRAL tribunal, identically composed, also dismissed claims filed by Amre and Hossam Ginena under the Canada-Egypt BIT over the same set of measures. This case was administered by the Permanent Court of Arbitration in The Hague.

The tribunals dismissed both claims, either on jurisdictional or on merits grounds, finding that many of impugned acts did not meet a general sovereign action requirement, and that the tribunal lacked jurisdiction over the full protection and security claim since the claimants had failed to resort to local remedies or prove their futility (under the UAE BIT); and submitted that claim belatedly (under the Canada BIT). The tribunals further ruled that the domestic judgments did not present any serious flaws, there had been no obligation for Egypt to extend the Concession, the state had validly terminated the Concession based on NatGas’ breaches, and there had been no harassment.

Sameh Sayed Mohamed, vice president of the Egyptian State Litigation Authority (ESLA), stated that the awards confirm Egypt's "respect for all its international treaties and agreements "related to investment disputes.

Egypt defeats bulk of multibillion real estate claim

In another significant arbitration outcome, Egypt announced that an ICSID tribunal has ruled it must pay only a small fraction of the US$8 billion sought by a group of Kuwaiti claimants over a cancelled project to build a new city south of Cairo. The tribunal, chaired by Swiss arbitrator Pierre Tercier of Peter & Kim, along with US academic John Gotanda and Mexico’s Claus von Wobeser, issued the award on 13 September 2024, in a case brought by International Holding Project Group and 12 other Kuwaiti entities and individuals.

Although the award details have not been disclosed, the Egyptian State Lawsuits Authority (ESLA) reported that the tribunal awarded less than 1% of the amount claimed. The claimants had demanded US$8 billion in damages. ESLA stated that the award justifies the expulsion of the claimants from the land allocated for the project and the restoration of the site to the state, celebrating the result as a “remarkable achievement”.

Ongoing and potential treaty claims

However, there are still a number of ongoing and potential treaty cases against Egypt. Toronto-listed Nuinsco Resources, according to its securities filing in August 2024, has notified Egypt of a potential investment treaty claim over a terminated gold mining contract under the Canada-Egypt BIT. The company said that it would file for arbitration if the parties fail to settle their dispute within the six-month cooling-off period contained in the treaty. The BIT allows for arbitration to be heard under ICSID, ICSID additional facility or ad hoc UNCITRAL rules.

Pro-enforcement stance of the Egyptian courts

In a recent judgment (Court of Cassation Judgment No. 9500 of Judicial Year No. 77), the Egyptian courts reaffirmed their support for enforcing arbitration awards. The court emphasised that Egypt, as a signatory to the New York Convention since 1959, must enforce foreign arbitration awards using the most favourable procedural rules, avoiding unnecessary restrictions. The court further clarified that applicants have the right to pursue enforcement either through a simpler procedure by filing a petition with the court, as provided by the domestic Arbitration Law, or through the standard procedural route outlined in the Code of Civil Procedure.

Public order and arbitration awards

In another significant judgment (Court of Cassation Judgment No. 641/607 of Judicial Year No. 71), the Court of Cassation elaborated on the criteria for setting aside an arbitration award due to contravention of public order. The court stated that a foreign arbitration award must be set aside if it violates a matter of public order in Egypt. However, merely contradicting a legal rule, even if mandatory, does not suffice to set aside a foreign arbitration award unless it pertains to public order. Additionally, if the violation of public order is limited to only part of the award, the court can order partial enforcement of the award for the part that does not contain any violation, provided such separation is feasible and within the judge’s authority.

These judgments highlight the Egyptian Courts' balanced approach to supporting arbitration while ensuring compliance with public order principles, providing greater certainty for parties seeking to enforce foreign arbitration awards in Egypt.