Corruption, revolution and settlement: An Egyptian story for resolving investment disputes
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In 2011, a series of decisions were rendered by the High Administrative Court at the Egyptian State Council in which the court considered void the privatization of a few public companies which had been transferred to foreign investors due to the invalidity of the procedures of tendering and bidding and the corrupt practices accompanying these transactions. The court also considered null the arbitration clauses inserted in these contracts. During this period, the climate of the Egyptian revolution of 25 January 2011 pushed public opinion to welcome these decisions as a sign of popular victory against the old corrupt regime. Yet, this trend made the foreign investors anxious about the legal security and the stability of their investments. Accordingly, the subsequent Egyptian government introduced a variety of legislative measures to assure the investors and to boost economic growth. These measures included the possibility of conciliation in financial crimes or crimes affecting the public fund and also forbidding third parties from challenging any public investment contract before the national courts. In 2015, new amendments were introduced to the investment law establishing a new ministerial committee to settle investment disputes. From all the above, it is clear that the legislative and executive authorities were keen to secure smooth procedures to settle investment disputes outside the umbrella of arbitration. In this paper, we try to evaluate the different measures introduced in the Egyptian law and analyze its relation with arbitration whether as a complementary or competing process.
- 2017 - Volume 2017 - Issue 2 [11 items ]