EGYPT Law and Practice Contributed by: Ahmed Kotb, Mohamed Ehab, Mohamed Sameh and Yasmine ElSakka, Khodeir & Partners
(2) “group of companies” doctrine; and (3) economic unity/composite transactions.
on an accelerated and prima facie basis to prevent irreparable harm. These proceedings serve a similar protective function to emergency arbitration. Juris - prudence has identified several examples of urgent measures that may be sought through such proceed - ings, including, inter alia, the appointment of a legal custodian over a disputed asset to preserve its value or ensure its proper management pending the out - The EAL does not specifically address the arbitral tri - bunal’s authority to order security for costs. Security for costs may, however, be ordered based on the gen - eral jurisdiction and authority granted to the arbitral tribunal to order interim measures, provided that the general conditions for such measures are fulfilled. come of the main dispute. 6.3 Security for Costs Under Article 25 of the EAL, the parties enjoy broad freedom to determine the procedural rules governing their arbitration, including the option to submit their dispute to the rules of any arbitral institution, whether domestic or international. In the absence of such an agreement, the arbitral tribunal is empowered to adopt procedural rules it deems appropriate, provided that these do not conflict with the mandatory provisions of the EAL. 7.2 Procedural Steps The EAL does not prescribe rigid procedural steps for arbitral proceedings, allowing parties substantial flexibility as long as public policy is respected. Under Article 26, the parties must be treated equally and given a full and fair opportunity to present their case. While the EAL does not impose detailed procedures, it outlines certain default rules that generally apply unless the parties agree otherwise. Arbitration pro - ceedings officially commence on the date the respond - ent receives the request for arbitration (Article 27). The parties typically exchange written submissions sup - ported by evidence, including statements of claim, defence and, optionally, counterclaims, within agreed 7. Procedure 7.1 Governing Rules
6. Preliminary and Interim Relief 6.1 Types of Relief
According to Article 24 of the EAL, an arbitral tribunal is empowered to grant interim or precautionary relief upon a party’s request, provided that the parties have expressly agreed to this authority. Such agreement may be made directly or by referring to institutional arbitration rules that explicitly confer this power on the tribunal. Notwithstanding any such agreement, national courts retain the authority to issue interim relief, even where the parties have agreed to conduct arbitration under institutional rules that empower tribunals to issue such measures. This preserves the role of national courts in supporting arbitration by ensuring urgent protection where tribunal jurisdiction may be delayed or limited in enforceability. Both forms of relief serve a protective function, focused on preventing irreversible harm, and are grounded in the principle that courts (or tribunals) should not prejudge the underlying dispute when granting such measures. Parties could seek to maintain the status quo, preserve evidence and/or protect assets from dissipation. 6.2 Role of Courts According to Article 14 of the EAL, national courts have the authority to grant preliminary or interim relief in support of arbitral proceedings, upon the request of either party. This power is grounded in public policy and cannot be waived or excluded by party agree - ment, even where an arbitration clause exists. Courts may also be requested to enforce interim measures issued by the arbitral tribunal as per Article 24 of the EAL. The EAL does not currently provide for emergency arbitration. Instead, as outlined in 6.1 Types of Relief , Egyptian law allows for expedited court proceedings, whereby a party files a lawsuit before the competent national court, which should handle the matter at hand
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