Arbitration in Egypt

Introduction

Arbitration is an alternative dispute resolution mechanism that operates outside the framework of traditional judiciary systems. In Egypt, arbitration is widely accepted in commercial and legal circles, especially with the rapid development in the fields of investment and international trade. Arbitration allows disputing parties the freedom to choose arbitrators and applicable procedures, thereby facilitating the achievement of justice in a faster and more efficient manner.

Definition of Arbitration

Arbitration is a legal system through which parties agree to refer a specific dispute or a certain type of dispute to an arbitral tribunal instead of resorting to courts. Arbitration is defined under Article (10) of the Egyptian Arbitration Law No. 27 of 1994 as “an agreement between two or more parties to refer to arbitration a specific dispute that has arisen or may arise between them concerning a defined legal relationship.”

Characteristics of Arbitration

1. Contractual Nature: Arbitration is based on the agreement of the parties.
2. Flexibility: Arbitration procedures offer flexibility, allowing parties to determine the rules and procedures.
3. Confidentiality: Arbitration ensures confidentiality, protecting the interests of the parties.
4. Binding Nature: Arbitral awards are binding and enforceable.

Types of Arbitration

1. International Commercial Arbitration: Involves parties from different countries.
2. Domestic Commercial Arbitration: Involves parties within the same country.
3. Mandatory Arbitration: Imposed by law in certain cases.
4. Voluntary Arbitration: Agreed upon by the parties without legal compulsion.

Egyptian Arbitration Law

The Egyptian Arbitration Law No. 27 of 1994 provides the legal framework for arbitration in Egypt. The law includes:

1. General Provisions: Covers the definition and scope of arbitration.
2. Arbitration Agreement: Regulates the drafting of arbitration agreements.
3. Arbitral Procedures: Specifies the appointment of arbitrators and procedures for resolving disputes.
4. Enforcement of Arbitral Awards: Details the conditions and procedures for enforcing arbitral awards.

Stages of Arbitration

1. Conclusion of the Arbitration Agreement: Parties define the scope of the dispute and arbitration procedures.
2. Appointment of Arbitrators: Arbitrators are selected as per the parties’ agreement or legal provisions.
3. Arbitral Proceedings: Include submission of documents, witness hearings, and arguments.
4. Issuance of the Arbitral Award: Arbitrators render a final and binding decision.
5. Enforcement of the Award: The award is submitted to the competent court for recognition and enforcement.

Advantages of Arbitration in Egypt

1. Speedy Resolution of Disputes.
2. Specialization: Selection of arbitrators with relevant expertise.
3. Cost-Effectiveness: Lower costs compared to lengthy court proceedings.
4. Avoidance of Procedural Complexities.

Challenges Facing Arbitration in Egypt

1. Lack of Awareness: Some parties still prefer traditional litigation.
2. Shortage of Qualified Arbitrators: Limited number of experienced arbitrators.
3. Judicial Interference: Judicial interventions may hinder the enforcement of arbitral awards.

References and Sources

1. Egyptian Laws:
   • Egyptian Arbitration Law No. 27 of 1994.
2. Books and Encyclopedias:
   • Abdel Hamid El-Shawarbi, “Arbitration in Administrative Contracts,” Dar Al-Fikr Al-Arabi, 2008.
   • Ahmed Abu El-Wafa, “International Commercial Arbitration,” Dar Al-Nahda Al-Arabia, 2015.
3. Journals and Articles:
   • Arab Arbitration Journal, Issue 45, 2020.
4. Websites:
   • Egyptian Ministry of Justice website.
   • Egyptian Center for Voluntary Arbitration website.

Conclusion

Arbitration in Egypt is an effective tool for swift and flexible dispute resolution. Despite the challenges it faces, arbitration remains an ideal option for many parties, especially considering the country’s economic and investment transformations. Egypt can strengthen its position as a regional and international arbitration hub by developing the legal framework and increasing awareness of the importance of arbitration.