EGYPT Law and Practice Contributed by: Inji Fathalla, Salma Nasreldine, Haya El Samra and Ismaël Sedky, Shahid Law Firm
receive fair and equitable treatment and the right to repatriate their funds into their native states. These same agreements also contain dispute reso- lution provisions. For instance, Article 41 of the Egypt–EFTA Free Trade Agreement and Article 34 of the Egypt–Turkey Free Trade Agreement estab- lish arbitration as the method of dispute resolution. The COMESA treaty, by contrast, is different in that it establishes a court, but still provides arbitration as an available option. In these agreements, the protection of investors and their investment, as well as the resolution of dis - putes through arbitration, are essential components designed to promote cross-border investment, and To the authors’ knowledge, Egypt does not publish commentaries or exchange of notes as guidance for investment treaties. Interpretative guidance for investment treaties and their content, even in the absence of official publica- tions by Egypt, may still be found in arbitral jurispru- dence, in domestic legislation relating to investment, and in relevant scholarly writings, while Egyptian juris- prudence may also provide additional assistance for the interpretation of laws relating to arbitration and investment. 2.5 Investment Laws Egypt’s investment regime is anchored in Investment Law No 72 of 2017 (EIL), the principal legislative instrument governing foreign and domestic invest- ment. Amongst its key substantive provisions, the EIL provides investors with general incentives such as exemptions from stamp duty and notarisation fees, as well as reduced customs duties on imported machin- ery, as well as special incentives to projects located in priority regions, with deductions of up to 50% or 30% of investment costs. Additional incentives under the EIL include the establishment of custom ports dedi- cated to specific projects, coverage of utility connec- tion costs, and in some cases, the allocation of land free of charge. The framework also enables the crea- tion of Public and Private Free Zones, which benefit enhance mutual trust. 2.4 Interpretive Aids
from extensive tax and customs exemptions. Notably, the EIL introduced the so-called “golden licence”, a one-stop approval that consolidates permits, licences, and land allocation for strategic projects, streamlining processes for strategic projects. The EIL further provides investors with a wide range of dispute resolution and settlement mechanisms. It first considers amicable settlement as the primary mode of resolution. It then establishes a Grievance Commit- tee for decisions issued by the General Authority for Investments and Free Zones (GAFI) – Egypt’s central authority for investment administration and promo- tion – or any other authority responsible for granting approvals, permits or licences. The EIL also provides for a Ministerial Committee for Investment Dispute Resolution to resolve disputes concerning investors’ claims, complaints, or conflicts. In addition, it estab- lishes a dedicated Centre for Arbitration and Media- tion for investment-related disputes, while arbitration remains an option available to investors. Accordingly, the EIL offers investors a considerable number of avenues to resolve potential disputes. It also sets out the same protections found in most BITs concluded by Egypt, notably, fair and equal treatment, national treatment, protection against arbitrary and discriminatory measures or decisions, residence and stays, respect for enforcement of state contractual obligations, and protection against expropriation and nationalisation. 2.6 Arbitration Clauses in Investor–State Contracts In parallel with the aforementioned mechanisms, when an investor contracts directly with Egypt or an Egyp- tian entity, it is relatively common for such contracts, characterised as “administrative contracts”, typically involving large-scale projects, to include an arbitration clause. However, such clause is subject to the approv- al of the competent minister and to a prior review of the contract by the High Committee for Arbitration and International Disputes before its conclusion. Moreo- ver, the protections guaranteed by BITs are distinct from those contained in such contracts. This distinction stems from the fact that an arbitration clause provided in a contract governs disputes arising
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