EGYPT Trends and Developments Contributed by: Inji Fathalla, Salma Nasreldine, Haya El Samra and Ismaël Sedky, Shahid Law Firm
However, after negotiations, the parties reached a settlement and the proceedings were discontinued, with the investor receiving a settlement in sum. • In Al Jazeera Media Network v Arab Republic of Egypt, ICSID Case No ARB/16/1 , the investor claimed that Egypt has allegedly placed the local branch of the investor’s company into compulsory liquidation, but following negotiations, the investor withdrew its claims. • In Gesenu S.p.A. v Arab Republic of Egypt, ICSID Case No ARB/20/45 concerning expropriation of the investor’s assets, proceedings were likewise discontinued, and a settlement was reached. • Similarly, in Qatar Airways Group QCSC v Arab Republic of Egypt , in which the investor alleged that Egypt blocked the company’s operations by closing Egyptian airspace for the investor and revoking its licenses to operate, the dispute was resolved through settlement. These settlements reflect Egypt’s growing empha- sis on maintaining investor confidence and fostering long-term partnerships. By addressing disputes proactively, the country rein- forces its reputation as a reliable and business-friendly investment destination; particularly through the estab- lishment of specialised centres, such as the Investors’ Dispute Settlement Center, as well as the Ministerial Committee for the Settlement of Investment Con- tract Disputes (MCICDS), two institutions established exclusively for the amicable settlement of investor― state disputes. The implementation of these mecha- nisms has taken place recently, notably with the Cabi- net of Ministers’ approval of decisions made by the MCIDS regarding the settlement of disputes related
to investment contracts. Among these decisions is a settlement agreement with Future Pipe Industries BV, which contributes to the protection of mutual invest- ments between Egypt and the Netherlands, as well as a settlement agreement between Egyptian Chemical Industries (Kima) and Italy’s Tecnimont. While arbitration remains a crucial safeguard and incentive for investors and the prevailing mechanism for the resolution of investor―state disputes, amica- ble settlement has become an established and often preferred solution for Egypt as well as investors. What Does This Mean for Investors? Egypt’s investment boom is built on a foundation of legal certainty, modernised treaties, and a strong focus on amicable dispute resolution. Investors can expect a more predictable environment with more transpar- ent laws and streamlined processes, providing clarity and confidence for long-term commitments. At the same time, Egypt has ensured balanced protections, offering safeguards for investors while maintaining the state’s right to regulate in the public interest. Dispute resolution mechanisms have also been significantly improved, with an emphasis on settlements to avoid prolonged legal battles and enhance efficiency. As Egypt looks to the future, it is prioritising tech- based foreign direct investments to establish itself as a regional hub for innovation and digital transforma- tion. Additionally, the government is expanding its role as a logistics gateway, capitalising on Egypt’s stra- tegic location at the crossroads of Africa, Asia and Europe to attract global supply-chain leaders and further cement its position as a pivotal player in inter- national trade.
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