EGYPT: An Introduction to Dispute Resolution: Most in Demand Arbitrators
The attorney’s profession relies on the economic landscape, especially lawyers who are practicing in the field of business, extensively connected to the business flow and foreign investments. The current geopolitical conflict occurring between Gaza-Israel affected the economic stability, and, in succession, this reduced the foreign investment flows, and the hot money fled out of Egypt.
The Current Economic Situation Affecting the Profession
One the main difficulties affecting the profession is the devaluation of the Egyptian pound (EGP). The Egyptian government devalued the EGP three times since 2022, to implement the required economic reform by the International Monetary Fund (IMF). At the beginning of 2025, there are expectations that the EGP will be devalued, which creates a state of ambiguity that prevents lawyers from determining future costs. Because lawyers’ main clients come from the private sector, another aspect affecting the profession is the maximisation of the role of state-owned entities and the decrease in the private sector’s involvement in the economy.
The Level of Activity in the MENA Region
The MENA region is facing an important development in the promotion of international arbitration. The UAE, more specifically Dubai, became a major hub for settling international disputes through arbitration. The Kingdom of Saudi Arabia (KSA) is also following the same path, by signing, on 6 March 2024, a memorandum of understanding between the Permanent Court of Arbitration and the Kingdom of Saudi Arabia, setting the stage for a Host Country Agreement before the end of 2024. The KSA made important reforms to its domestic laws to attract foreign investors. Egypt is also taking the same approach, allowing foreign investors to wholly own companies in Egypt, without having Egyptian partners “except [for] some activities that require that the majority shall be owned by Egyptians”. All these steps will promote positive expectations in the practice of business lawyers in the MENA region.
New Legislation Boosting the Efficiency of International Arbitration
The Cairo Regional Centre for International Commercial Arbitration (CRCICA) brought an essential amendment that will enhance the efficiency of international arbitration. The CRCICA added a provision to its 2024 Arbitration Rules, which stipulates that the arbitral tribunal has the authority to grant interim measures and appoint an emergency arbitrator if the arbitration proceedings have not started or the arbitral tribunal is not wholly constituted. The interim measures are an essential provision for protecting rights, preserving assets and safeguarding evidence. Such a provision enhances the efficiency of international arbitration, especially in the case of irreparable harm that needs immediate intervention.
Enforcement is the Biggest Challenge
In the Arab Republic of Egypt, enforcement remains the biggest hurdle that any client may face. Bureaucracy calls into question the real intentions of the Egyptian government, whether it is promoting international arbitration or hindering the execution of arbitral awards. Changes on the ground are needed across the Middle East at all levels of the judicial system, from court clerks to judges, and from annulment applications to set aside an arbitration award to enforcing an arbitration award pursuant to a country’s duties in accordance with the New York Convention.