Book an appointment with us, or search the directory to find the right lawyer for you directly through the app.
Find out moreThe first Law Update of 2024 is here, and our first focus of the year spotlights Healthcare and Lifesciences, a sector that is undergoing significant growth and development across the MENA region.
Our focus provides an insight into some of the most important regulatory updates across the region, such as the UAE’s groundbreaking law on the use of human genome, Kuwait’s resolution on nuclear and radioactive materials, the new regulations for healthcare services in Qatar, Egypt’s healthcare regulatory framework, and the impact of the Saudi Civil Transactions Law on the healthcare and life sciences sector … and there is so much more!
Beyond the healthcare pages our lawyers share with you multi-sector insights where you will discover articles on Dubai’s DIFC regulatory framework for startups, Bahrain’s commercial agencies law, and we also shed light on Kuwaiti civil code and the advantages of setting up a joint stock company in Saudi Arabia.
Read the full editionHassane Hassan
November 2015
Following the amendments executed recently in the Investment Law and the Companies’ Law, which have had a positive impact in terms of reassuring investors and attracting more investment to the Egyptian market, the Egyptian government has formed a new committee to help quickly settle investment disputes before reaching the courts.
As part of its former efforts to simplify the investment process and avoid potential disputes, the Egyptian government formed a ministerial committee to settle disputes related to investment contracts. However, this committee lacked sufficient legal powers to make effective decisions for the amicable settlement of such disputes. This has led to the issuing of a new decree to restructure the committee and provide it with more effective powers.
The Egyptian cabinet of ministers issued Decree Number 2432 on 8 September 2015 (the “Decree”), establishing the ministerial committee for the settlement of disputes of investment contracts. The committee is formed from a selection of senior state officials, ministers and representatives of sovereign entities. The committee is led by the Prime Minister and ministers of the economic group, the minister of international cooperation, the minister of justice, as well as representatives of the Egyptian armed forces and the administrative supervision authority. The Decree also allows for additional state officials to become members of the committee to observe and supervise topics, if so needed.
The committee is empowered to consider and settle disputes referred to it arising from investment contracts to which the state or governmental agencies are a party. The committee will attempt to reach an amicable settlement between the parties of those agreements in a manner that achieves economic equilibrium between the parties, on the basis of applicable laws and the preservation of public funds.
The Decree has granted the committee certain important new powers to resolve disputes on investment contracts, provided that the parties to those contracts consent to the settlement. These powers include the rescheduling of financial dues, the correction of the procedures taken to execute the relevant contract, as well as extending maturities, durations and deadlines stipulated in the contract. In fulfilling its purpose, the committee will hold sessions with the conflicting parties to discuss the subject of the dispute and the options acceptable to the parties, and will also consult technical experts specialised in the relevant matters at dispute.
The particular strength of the committee is its power to suggest amendments to the administrative contracts, thus providing the parties with the opportunity to avoid potential disputes and make acceptable amendments.
The Decree was enacted after the issuance of a number of decrees and regulations intended to reform the legislative system in Egypt and to assist in overcoming investment hurdles. This is another step in demonstrating the serious intentions of the Egyptian government to improve the investment climate in Egypt. This initiative should provide investors with a means of resolving potential disputes in an amicable manner while avoiding the costly and time-consuming involvement of the judiciary. Assisted by the important fact that some of Egypt’s most senior government decision makers are on the committee, the Decree is able to assist investors by allowing the committee to make appropriate amendments to investment contracts which need resolution of ambiguities or obstacles resulting from the way they were drawn up.
This article first appeared in the October 2015 edition of IFLR Magazine – International Briefing Egypt.
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.