Establishing a Center for Settling Non-banking Financial Disputes
On 11 July 2019, a Presidential Decree no. 335 of 2019 (the “Decree”) was issued to establish a non-profit center called “the Egyptian Centre for Voluntary Arbitration and Settlement of Non-banking Financial Disputes” responsible for settling disputes arising under non-banking financial laws (the "Center").
The establishment of the Center comes in implementation of Law No. 10 of 2009 regulating Non-Banking Financial Markets and Instruments which required, in Article 10 thereof, the establishment of an arbitration center for settling disputes arising from non-banking financial laws.
Non-banking financial markets and instruments refer, among others, to capital markets, futures exchanges, all activities related to insurance services, mortgage finance, financial leasing, factoring and securitization.
The Center is competent to settle and arbitrate all disputes relating to non-banking transactions, especially those between partners, shareholders or members in companies and entities operating in the field of non-banking financial markets, whether among themselves or among them and the abovementioned companies and entities. The jurisdiction of the Center also covers the disputes of investors and beneficiaries of non-banking financial activities with the abovementioned companies and entities in relation to the provision of their activities.
The Center is allowed, before starting the arbitration proceedings, to refer to mediation or reconciliation or any other mean of consensual dispute settlement, unless the parties are expressly agreed on settling their disputes exclusively through arbitration.
The awards rendered by the Center shall have the same binding authority of awards rendered according to the Egyptian Arbitration Law.
The Center’s articles of associations shall be issued by virtue of a ministerial decree within 6 months from the effective date of the Decree. Such articles of associations shall determine, among others, the headquarters of the Center and its rules and procedures.
It is worth mentioning that the Decree allows the use of electronic means for the submission of arbitration requests and the settlement of disputes before the Center according to the rules and procedures to be provided under its articles of associations.