International Construction Law Review
IS EGYPT A FRIENDLY OR UNFRIENDLY COUNTRY TO ARBITRATION?
Dr Engy Serag
Contracts and Claims Director, Orascom Construction (engy.serag@orascom.com)
ABSTRACT
Egypt has recently attracted investors to start mega projects in the Country. Claims and disputes are very common on mega projects; accordingly, the need for an arbitration friendly judicial system was needed. The government enacted the Egyptian Arbitration Law (EAL) 27 of 1994 and its amendments, and ratified the 1958
New York Convention. Despite the above, there are challenges in relation to arbitration agreement, arbitration procedures, and enforcement in Egypt, when Egypt is the seat of arbitration, and where (EAL) is the governing law. In this paper the challenges are analysed depicting problems that need enhancements by jurists and scholars.
INTRODUCTION
Arbitration has been present in Egypt since several years before codification and was governed by Sharia which is the Islamic rule. Then the Ottomans issued a decree on 13 November 1883, which was the first civil code in Egypt and included a chapter on arbitration.1
Egypt has recently attracted several investors to start several mega projects. The technicalities of the disputes, the need for a fast and confidential way of settling such disputes, and the desire of the investors to get involved in the constitution of the tribunal have encouraged the Egyptian legislators to take a major step in arbitration as an alternative method of dispute resolution with the promulgation of Law No 27 of 1994 on Arbitration in Civil and Commercial Matters.2 The Egyptian Arbitration Law (EAL) is based on the United Nations Commissions on International Trade Law Model (UNCITRAL Model Law). It applies to arbitration that is held in Egypt between public or private parties or even if the arbitration is abroad and the parties agreed that Egypt is the judicial seat of arbitration, it also applies to the international conventions to which Egypt is a party (Article 1
1 Helal, H, “Arbitration in Egypt: Myth or Reality” (September 2016) Oil & Gas Newspaper, Issue 117, (hereafter “Helal”).
2 Taha, M, “Egypt: Legal Framework for Arbitration” (August 2014) The Law Library of Congress, Global Legal Research Center http://www.law.gov (last accessed 9 February 2018).
Pt 2] Is Egypt a Friendly or Unfriendly Country to Arbitration?
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