Round table 29th March2023

The international Round Table “The application of the Egyptian investment law, registration of legal entities and system of dispute resolution,” in collaboration with the partner law firm Keremet holding, March 29, 2023 at 11.00 am Cairo time.

In the interests of business –

for the benefit of society!

 SADANY&KHALIFA is one of Egypt’s pioneering law firms. Since its inception, the firm has worked tirelessly on providing innovative legal solutions that help clients reach their ideal outcomes. The Firm has vast expertise in offering legal consultation to both public and private sector companies, as well as to many government authorities and ministries. Our clients can benefit from our international experience, local knowledge and expertise from across the Arab countries.

KEREMET Holding, the full service law firm based in Almaty, Kazakhstan, is founded in 2016 and provides the legal support of complex international transactions, investment projects, represents clients in state and arbitration courts, registers companies and obtains licenses at AIFC, and assists with copyright law issues.

Egypt is now in the process of finalizing the negotiations of a free trade agreement between Egypt and the Eurasian Economic Union (EAEU). This agreement represents a new bridge to strengthen and develop joint economic relations between the two sides in various fields, increasing joint investments between member states in the interest of Egypt and EAEU alike. 

The main investment legislation in the Arab Republic of Egypt is Investment Law No. 72 of 2017. Under this Law, investors have the right to import raw materials, equipment, spare parts and/or transport means directly and as necessary for investment projects without registering at the Importers Registry (General Organization for Export and Import Control), which can help to reduce the costs of starting a business.

Moreover, there is a huge potential for companies in Egypt which seek to expand beyond the developed, mature markets of the northern hemisphere. The population of Egypt is 100 million and is rising by about 2 million people a year. Egypt’s enormous domestic market, strong GDP growth, strategic geographical position makes it attractive for foreign investment. Recently, the ARE has made remarkable economic progress and Cairo with its vibrant environment and rapidly growing economy, undoubtedly, constitutes a hub for businesses across the Middle East and North Africa. There are investment opportunities in a variety of sectors, attracting interest from around the world. 

At the same time we know that it is usually easy to invest in a country, but what situation would be in the case of the desire to exit and withdraw investments; will the situation be the same? Hence, we consider it necessary to make an overview of the legislation regulating company liquidation in Egypt.  

Also, the presence of foreign business always triggers the development of arbitration and in the Arab world regional arbitration centers are being established. The courts of the region are increasingly willing to recognise and enforce arbitral awards, not only under the New York Convention, but also under a number of the regional enforcement treaties, in particular the Riyadh Convention and the GCC Convention. During the Round table we will briefly go through the topic of dispute resolution system in the ARE.

The Arab Republic of Egypt is one of the first countries which acceded to the New York Convention on March 9, 1959 without any reservations. And in 1979, the first regional arbitration center was created in the Arab World: the Cairo Regional Center for Commercial Arbitration (“CRCICA”). The Egyptian Arbitration Law No. 27 /1994 Promulgating the Law Concerning Arbitration in Civil and Commercial Matters entered into force in 1994 and is applicable to international and domestic arbitrations.

Moreover, as a recent development we should mention the Law No. 10 of 2009 concerning the regulation and supervision of non-banking, financial markets and instruments, Article 10 of which stipulates that the Egyptian Center for Arbitration and Settlement of Non-Banking Financial Disputes (ECAS) is to be established by a decision issued by the President of the Republic.

Also, we should mention that in CRCICA the fee for submission of request for arbitration is moderate that puts the institution in Egypt in a competitive position, “fixed registration fee amounting to US $ 500 to be paid by the claimant upon filing the notice of arbitration and the respondent upon filing a counterclaim.”^[1] 

Regarding the court system in Egypt, according to the local law, the Court of First Instance can only execute a foreign judgment when it verifies that the ‘reciprocity’ condition is satisfied. The writ of execution on the foreign judgment does not require the existence of a convention/ agreement between the two countries, but rather the existence of the reciprocity condition. The Egyptian Procedural Law no. 13 of 1968 has regulated the implementation of foreign judgments in Egypt through Articles 296, 297, 298, 299, 300, 301.

In general, the business climate in Egypt is conducive and more detailed information on setting up a business in this country you can acquire at our Round Table as by identifying challenges, we assist the creation of an attractive and predictable environment. In this way, the event is also useful for government officials, as policies geared towards eliminating or minimising the severity of business obstacles will have better outcomes if the group of companies is reporting such obstacles directly.

Regarding the certification process in Egypt, in order to export most of the products to the ARE, the factory must go through a registration process under Decree No 42, 2016 and get registered in the General Organisation for Export and Import Control. There are further requirements for each product to be accepted in Egypt but they are different from a product to a product. During the Round Table we will consider this issue more specifically and clarify the requirements for some products.   

Participation is free of charge, however, the registration is mandatory. Please, send the email to the following address: info@sadanykhalifa.com

The zoom link for the event is:    https://zoom.us/j/96859683857?pwd=K3lIek5peEg3STFSd09wbjV1TVBxUT09

Questions and answers section will allow the participants of the Round table to unravel the business obstacles and a company can develop its strategy accordingly. Also, we will tackle the issue of market feasibility studies because comprehensive market analysis identifies business opportunities, maximizes returns and minimizes risks. If you are starting a new project, a focus on business alternatives will help you to make strategic decisions. Guiders Consult, is a management consultancy company under the Egyptian Law which apply unique designed business models and services to support business owners and entrepreneurs leading their business toward profitability.

 Fixing the mistake afterwards can be difficult, expensive and time consuming when the entity has already been established. Pitfalls you are not aware of, will affect companies’ performance and, consequently, economic growth in the long run.

In case you have any specific question, please send it along with the registration to the above-mentioned email address.