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Effective Dispute Resolution Mechanisms

Investment Dispute Settlement Center

Investment Law No. 72 of 2017 stipulates a set of diverse mechanisms that allow investors to settle their disputes with administrative entities amicably or through specialized committees, while allowing recourse to arbitration or the judiciary if needed.

1. Investor Dispute Settlement Center (IDSC) :

  • As part of the comprehensive services provided by GAFI to improve the investment environment, the Investor Dispute Settlement Center (IDSC) was established in 2009 to resolve disputes that may arise between investors through mediation.
  • In designing IDSC's rules, account was taken of best international practices, comparative legislation, and the recommendations of the United Nations Commission on International Trade Law (UNCITRAL).

Demonstration video about Investors Disputes Settlement Center

 

Organize the mediation procedures and the obligations of all participants in these rules:

Procedure Rules Of The Center

Booklet On The Investors Disputes Settlement Center

Mediation In Commercial Disputes

2. Grievance Committees :

One or more grievance committees are formed within GAFI to review grievances against administrative decisions made by GAFI or other competent authorities responsible for granting approvals, permits and licenses, under Investment Law No. 72 of 2017.

Committee Formation

Committee Formation

The committee is chaired by a councilor from a judicial entity, appointed by its council, with the membership of a GAFI`s representative and a member of expertise.

Duration

Duration

Grievances must be submitted within 15 business days from the date of notification or knowledge of the contested decision.

Specialized Committees

Specialized Committees

The grievance committee may draw on the expertise available within GAFI or other administrative authorities.

Decision Period

Decision Period

The committee shall issue a reasoned decision within 30 days from the date of the conclusion of hearing the parties.

Degree of Obligation

Degree of Obligation

The decision in this regard shall be final and binding on all relevant authorities, without prejudice to the investor’s right to judicial recourse.

3. The Ministerial Committee for Investment Disputes Resolution (MCIDR) :

  • MCIDR reviews requests, complaints and disputes arising between investors and the State, or in which public authorities or State-owned companies are parties. Its membership includes a vice-chair of the Egyptian State Council (ESC) nominated by its Ad-hoc Administrative Panel, and the committee`s decisions are subject to the Cabinet`s approval.
  • The Competent Administrative Authority is required to submit the necessary memoranda and supporting documents upon request. If the Authority is represented on the committee, it has no voting rights on matters related to it. The committee shall decide on the matters presented to it with a reasoned decision within thirty days from the date of the conclusion of hearing the parties and the presentation of their views.
  • Once approved by the Cabinet, MCIDR`s decisions are enforceable and binding on all administrative authorities, and have the same effect as an execution bond, without prejudice to the investor's right to recourse the judiciary. Failure to comply with the committee`s decision entails the application of article 123 of the Penal Code. Submission of a grievance against MCIDR's decision does not suspend execution.

4. The Ministerial Committee for Investment Contracts Disputes Settlement (MCICDS) :

MCICDS shall be formed by the Cabinet, and is mandated to settle any disputes arising out of the investment agreements to which the State, or one of its authorities or companies, is a party.

Committee Membership

Committee Membership

Its membership includes a vice-chair of ESC nominated by its Ad-hoc Administrative Panel, and the committee`s decisions are subject to the Cabinet`s approval.

Committee Tasks

Committee Tasks

MCICDS is responsible for investigating disputes arising between investment contracts parties, and rescheduling financial dues or correcting pre-contractual procedures.

Committee Decisions

Committee Decisions

MCICDS shall present a report to the Cabinet outlining its findings regarding the settlement process, detailing all its aspects.

 Decisions Enforcement

Decisions Enforcement

Once approved by the Cabinet, this settlement shall be enforceable and binding on the competent administrative authorities and shall have the force of an executive bond