Egypt strengthens pro-arbitration stance as reforms and flagship events gather pace

Egypt has adopted an increasingly pro-arbitration stance in recent years. In 2022, when faced with a challenge in the commercial court, the Cairo Court of Appeal only affirmed its view that arbitration is an international legal system respected by national courts.

Under Law no. 27 of 1994 on Arbitration in Civil and Commercial Matters (the Arbitration Law), disputes are arbitrable if they arise from a contractual or non-contractual legal relationship of an economic nature and are capable of amicable settlement. Notably, matters involving public policy or criminal law are excluded and therefore non-arbitrable.

• Read more: international arbitration developments and trends for 2025-26

For administrative contracts, however, arbitration is permitted only with the express approval from the relevant minister, as confirmed by the Egyptian Court of Cassation in March 2016. This approval cannot be delegated.

Additional oversight is provided by the Higher Commission for Arbitration and International Disputes under Prime Ministerial Decree no. 1062 of 2019, which reviews arbitration clauses in agreements with foreign investors and advises on disputes involving the states. These additional approvals can make the inclusion of arbitration clauses in agreements with government entities more procedurally complex and time-consuming.

However, the scope of arbitrable disputes is not unlimited, and Egyptian law excludes certain categories from arbitration due to their public order character. This carveout illustrates that, although Egypt generally maintains a pro-arbitration stance, the scope of arbitrable matters remains subject to clear statutory limits, particularly where public order protections, such as employee rights, are engaged.

Entities and enforceability

The Egyptian State Lawsuits Authority regularly represents the state in international arbitration. Egypt has acted as a respondent in numerous investor-state disputes, often involving ministries, public authorities, and state-owned enterprises in sectors including energy, construction, tourism, and real estate. These disputes typically arise under bilateral investment treaties that include arbitration clauses, confirming the government’s active participation in arbitration proceedings.

Under the Egyptian Arbitration Law (EAL), arbitral awards have the force of ‘res judicata’ – a doctrine that treats a cause of action as extinguished once judgment has been given on it. This means that the claimant’s only rights in respect of that cause of action are those confirmed by that judgment.

Arbitral awards are only enforceable once the 90-day period for filing an annulment has lapsed, provided certain conditions are met. Domestic awards require an enforcement order from the relevant court, while foreign awards are enforced under the New York Convention, following the same procedural rules as national awards.

The following decisions in 2025 provide useful recent guidance on enforceability and public policy.

In one case in February 2025, the Court of Cassation addressed the enforceability of arbitral awards involving specific interest and legal costs. The court clarified that the EAL does not regulate these financial aspects, and therefore the Egyptian Civil Code applies. Under article 226 of the Egyptian Civil Code, statutory interest is set at 4% per annum for civil matters and 5% for commercial matters, calculated from the date of the commencement of juridical proceedings.

However, article 227 allows parties to agree on a different rate provided this does not exceed 7% per annum. The court emphasised that interest awarded in arbitral decisions must comply with these limits and that any excess may be challenged as contrary to public policy under article 53 of the EAL. The allocation of costs remains at the discretion of the arbitral tribunal.

In separate proceedings that same month, the Court of Cassation held that the annulment of an arbitral award automatically nullifies any enforcement order attached to it. This case involved an award by the Cairo Regional Centre for International Commercial Arbitration (CRCICA), Egypt’s leading arbitration institution, that had been granted executory force by the Cairo Court of Appeal.

However, the Court of Cassation had previously annulled the award and therefore ruled that the enforcement order and all subsequent measures were void by operation of law. This decision highlights that the enforceability of arbitral awards in Egypt is strictly contingent on the validity of the award and annulment eliminates all enforcement effects without the need for a separate judgment. In this respect, public policy and validity of the award are both prerequisites for enforcement.

A separate case handed down in January also affirmed the legitimacy of the Ministry of Justice Arbitration Body. Although not a standing arbitral institution, this body serves as an ad hoc forum for resolving disputes involving public entities. The court confirmed that awards issued under this framework are binding, reinforcing Egypt’s pro-arbitration stance and its support for alternative dispute resolution mechanisms in public sector disputes.

Despite Egypt’s pro-arbitration approach, as mentioned above, international arbitration users should be mindful that certain categories of contract or dispute involving public policy or criminal law cannot be arbitrated. 

Another recent decision by the Court of Cassation served as a reminder that this exclusion extends to employment and labour law disputes. The court ultimately determined that attempting to refer an employment dispute to arbitration violates Egyptian public policy.

Further moves towards modernisation

On 19 May 2025, Egypt’s Senate began debating proposed amendments to modernise the country’s arbitration law in line with international standards and to enhance its investment climate.

One notable proposal was to revise article 3 to redefine “international arbitration”. The proposed amendment seeks to broaden significantly the scope of the EAL by removing the current requirement that a dispute must be linked to international trade.

By contrast, the change would make any one of several criteria – such as the parties being based in different countries, using a permanent arbitration institution like CRCICA, or the dispute involving more than one state – sufficient to classify the arbitration as international.

If passed, this change is expected to provide greater legal certainty and expand the scope of the EAL to cover a broader range of cross-border disputes. Importantly, it also reaffirms Egypt’s commitment to strengthening its arbitration regime and further consolidates its position as regional hub for dispute resolution.

The adoption of new CRCICA rules in January 2024 marked the first major update in the country’s arbitration rules since 2011 and aligned the centre with international best practices. The new rules introduced several modern features including consolidation; multi-contract claims; early dismissal of manifestly unmeritorious claims; third-party funding disclosure; emergency arbitrators; expedited proceedings; online filing; and enhanced use of technology to increase efficiency, transparency, and procedural flexibility.

These updates, which include an entirely new section and eight new articles, modernise CRCICA’s framework and reinforce its position as a leading arbitral institution in the Middle East and North Africa (MENA) region. Although still loosely based on the UNCITRAL Arbitration Rules, the new rules incorporate CRCICA specific provisions designed to ensure flexibility, cost-effectiveness, and smooth conduct of arbitral proceedings.

Egypt Arbitration Days (EAD)

The International Chamber of Commerce’s (ICC) Egyptian Arbitration Day in May 2024 and the Sharm El Sheikh IX Conference: The Role of State Courts in International Arbitration in December 2024 both drew global participation.

Following these successes, the Egypt Arbitration Days (EAD) were the highlight of the 2025 Egyptian arbitration calendar. EAD took place in Cairo in October 2025 and brought together leading national and international figures from law, business and arbitration to the MENA region.

The flagship event aimed to deepen understanding of arbitration, address practical challenges facing businesses and highlight emerging trends in dispute resolution. CRCICA had a prominent presence throughout EAD, hosting a major conference marking the 30th anniversary of Egypt’s Arbitration Law in collaboration with the CIArb (Chartered Institute of Arbitrators) Egypt branch.

With support from other institutions, including the International Chamber of Commerce (ICC) and leading law firms, the event fostered expert-led and cross-sector dialogue on best practices, legal reforms, and cross-border cooperation.

Hosting an international arbitration event of this stature further demonstrated how seriously Egypt is taking this form of dispute resolution and reflects the country’s growing stature in the global arbitration community.

As Egypt continues to modernise its arbitration landscape, annual events like EAD serve as vital platforms for knowledge exchange and capacity-building and will serve to strengthen Egypt’s arbitration framework and promote innovative solutions.

Co-written by Mohamed Ramadan of Pinsent Masons