I. Historical background

By the promulgation of Law No. 13 of 1968, the Civil and Commercial Procedure Law (hereinafter the “Procedure Law” “CCPL”) (in book 3, chapter 3), arbitration was introduced in Egypt as an alternative method of resolving disputes arising out of contractual or non-contractual relationships.

Subsequently, the rules of arbitration were introduced by the promulgation of Law No. 27 of 1994, the Civil and Commercial Arbitration Law (hereinafter the “Arbitration Law” “EAL”). The Arbitration Law was inspired by the UNCITRAL Model Law (hereinafter “UNCITRAL“), and it applies to any domestic dispute arising between private or public law persons, notwithstanding the nature of the legal relationship between them. It also applies to international arbitration, wherein the parties thereto have agreed to the application of the Arbitration Law.

II. General provisions of the Arbitration Law

Articles 1 to 9 of the Arbitration Law set out the general principles applicable to arbitration in Egypt. The key provisions are as follows:

Article 1 provides that if a dispute relates to an administrative contract, the arbitration agreement must be approved by the competent minister or the official assuming the minister’s powers with respect to public juridical persons. Further delegation of powers is not authorized in this regard[1], which means if the government or any other public bodies or agencies want to conclude an arbitration agreement, it must obtain the approval and signature of the competent minister or the head of the public body to submit such dispute to arbitration. The latter cannot delegate his powers in this case. However, one of the main shortcomings of this requirement is that the minister represents the executive authority in the state, which means that the minister’s approval of the arbitration clause will make it valid against the state, which might cause damage to the public interest in case of issuing an award against the public juridical person since such award would be considered as issued against the state itself.

Article 2 sets out the scope of the Arbitration Law; according to this article, the arbitration is commercial within the scope of this law if the dispute arises from a legal relationship of an economic nature, whether contractual or non-contractual. This provision further clarifies that such disputes comprise, in particular, the supply of commodities or services, commercial agencies, construction, and engineering or technical Know-how contracts, the granting of industrial, touristic, and other licenses, technology transfer, investment, and development contracts, banking, insurance, and transport operations, exploration and extraction of natural wealth, energy supply, the laying of gas or oil pipelines, the building of roads and tunnels, the reclamation of agricultural land, the protection of the environment and the establishment of nuclear reactors[2].

Article 3 sets out the requirements for an arbitration to be considered “International Arbitration”. It says that international arbitration is an arbitration where the subject matter is a dispute related to global trade, and any of the following scenarios apply[3]:

• If the principal places of business of the parties are located in two different states at the time of executing the arbitration agreement;
• If the parties to the arbitration agreed to resort to an arbitration centre or a permanent arbitral organisation;
• If the subject matter of the dispute is linked to more than one country; and
• If the principal place of business of the parties to the arbitration is located in one state at the time of the execution of the arbitration agreement, but one of the following places is located outside of that state, the seat of the arbitration shall be the place:

1. as agreed per the arbitration agreement;
2. where a substantial part of the obligations per the contract shall be performed; or
3. most closely connected with the subject matter of the dispute.

The Arbitration Law also gives parties the flexibility to resort to arbitral institutions, such as ICC or CRCICA, for their disputes’ procedural rules and administration[4]. Moreover, if parties subject their legal relationship to an international convention, standard contract, or any other document, the provisions of such instrument would apply, including the provisions relating to arbitration[5].

III. Competent court

Unlike the arbitration system in Qatar, there are no specialized arbitration courts in Egypt. The competent court for arbitration matters varies for domestic and international arbitrations: for international arbitrations, the Cairo Court of Appeal is the competent court, whereas, for domestic arbitration, the court that would have jurisdiction over the underlying dispute would also be the competent court to supervise the arbitral process.

IV. Arbitration Agreement

A. The Legal Nature of Arbitration Agreements

Consent is the cornerstone of arbitration. Arbitrators are a creature of the parties’ contract, and they cannot have the competence to entertain disputes without an explicit arbitration agreement between the parties. The arbitration agreement, therefore, defines the legal basis and scope of arbitration, including procedural matters such as seat and language.

An arbitration agreement is considered a private contract and is consequently subject to the laws applicable to private contracts. More specifically, it is considered a civil contract. An arbitration agreement will not be considered an administrative contract, even if one of the parties is a public person unless the contract contains unfamiliar and exceptional conditions.

B. The Conclusion and Validity of an Arbitration Agreement

For an arbitration agreement to be valid, parties must agree (either explicitly or implicitly) to resolve their dispute by arbitration. However, the arbitration agreement must express the parties’ will to arbitrate; there should be no ambiguity in that respect.

The Arbitration Law prescribes the following conditions for a valid arbitration agreement:

1. Concluded by natural or juridical persons having the capacity to dispose of their rights,
2. must be in writing;
3. must not include matters which cannot be subject to compromise (such as laws relating to personal status or public order); and
4. subject matter of the dispute can be determinable within the arbitration agreement.

For the purpose of its validity, it is not essential for the arbitration agreement to include the place, the law applicable to the arbitral proceedings, applicable substantive law, or specify the arbitrators or the method of their appointment.

The Arbitration Law stipulates that the subject matter of an arbitration agreement must not include matters that cannot be subject to compromise. The Egyptian Civil Law provides guidance on this. Such matters would include disputes related to personal status or public order.

V. Types of Arbitration Agreements

A. Arbitration Clause

An arbitration agreement can be concluded in the form of a clause within the framework of the underlying substantive contract. However, for insurance contracts, the law necessitates that an arbitration clause should be established by means of an independent agreement; otherwise, it would be considered null.

If the parties wish to arbitrate under institutional rules, they can opt for multiple model arbitration clauses provided by such institutions. If parties agree on ad hoc arbitration, both parties must ensure that their agreement on the arbitration clause is clear without any ambiguity as to their intention to arbitrate.

The parties also have the flexibility to conclude a separate submissions agreement, even after a dispute arises. In that case, the separate submissions agreement would take precedence over the original arbitration clause in the contract. If the arbitration clause is held to be null and void, and the parties have agreed a separate agreement after a dispute arises, then that separate agreement would be considered valid. Likewise, nullification of the separate agreement would not affect the validity of the arbitration clause.

An arbitration clause is independent of the original contract. According to Article 23 of the Arbitration Law, an arbitration clause is considered a separate agreement from the original contract, and the nullity, rescission or termination of the contract does not affect the arbitration clause, provided that such clause is valid.

B. Waiver of the Arbitration Agreement

An arbitration agreement can be waived by the parties. The straightforward example of a waiver would be the parties’ conclusion of a separate written agreement which explicitly terminates the arbitration agreement. However, it is also possible to waive the arbitration agreement by way of conduct. For instance, if a party files a claim before the court and the other party accepts the court’s jurisdiction, rather than challenging it on the basis of the arbitration agreement.

VI. Tribunal

A. Composition of Tribunal

1. Qualifications of an Arbitrator

There are several conditions, which must exist in anyone who will be appointed as an arbitrator. Article 16 of the Arbitration Law sets out the characteristics of an arbitrator. These are:

1. The arbitrator must be of full legal capacity and eligibility (i.e., must not be a minor, under guardianship); and
2. The arbitrator must not have been deprived of his civil rights by reason of a judgement against him for a felony or misdemeanour contrary to honesty or due to a declaration of his bankruptcy, unless he has been restored to his status.

There are no restrictions in regards to the gender, nationality, profession, or education of the arbitrators unless otherwise agreed by the parties.

It should be noted that the arbitrator must be a natural person, as the parties may appoint that arbitrator directly in case the arbitration is an ad hoc or institutional when the institution gives the parties the right to appoint the arbitrators, or nominate the arbitrator through the nomination list provided by the institution or nominate another arbitrator other than the names listed in the institution’s list if it is accepted by the institution.

Finally, in order for any person to be an arbitrator, he must not be restricted from being so, either by the parties or by law. For example, Judges and public prosecutors are restricted from being arbitrators even if they do it gratuitously, unless they obtain the consent of the supreme judiciary council, or if one of the parties is his kinsman or a relative by marriage up to the fourth degree. This rule is related to public order; therefore, if the judge decides in a dispute as an arbitrator, in cases where he was restricted from being so, his judgement will be considered as null and void.

2. Composition by Agreement of the Parties

Article 17(1) of the Arbitration Law stipulates that parties may agree on the choice of arbitrators, and on the method and period of time for effecting their choice.

The arbitral tribunal shall be consisted of one or more arbitrators. In the absence of such agreement on the number of arbitrators, the default number under the Arbitration Law is three members. If there is more than one arbitrator, the tribunal must consist of an odd number.

A party may implicitly agree to an arbitrator of the choice of the other party by way of proceeding with the procedures of the arbitration without any objections.

If the method of appointing arbitrators in a three-member tribunal is not agreed upon, each party shall appoint one arbitrator, and the two arbitrators shall then appoint the third.

3. Composition by Appointment by the Competent Court

Further to Article 9 of the Arbitration Law, appointment of arbitrators can also be made with the intervention of the competent courts in ad hoc arbitrations, subject to satisfying the following conditions set out in Article 17:

1. when the parties have not agreed on the choice and method of appointment of arbitrators, and the arbitral tribunal consists of a sole arbitrator, the court can appoint the arbitrator upon request of either party;
2. when the parties have not agreed on the choice, method of choice of arbitrators and the arbitral tribunal consists of three arbitrators and either party fails to nominate their co-arbitrator within thirty days of a request to do so from the other party, or if the two appointed arbitrators fail to agree on the third arbitrator within thirty days of the date of the latest appointment between the two, the competent court can appoint the third arbitrator upon the request of either party; and
3. when either one of the parties has violated the procedures for the choice of arbitrators agreed upon, or if the two appointed arbitrators were unable to reach the agreement expected of them as agreed to by the parties, or if the delegated third party has failed to perform its entrusted function.

Any appointments made by the court must be in accordance with the conditions prescribed by the Arbitration Law, as well as those agreed upon by the parties, and must be made expeditiously.

As to the acceptance of an arbitrator’s appointment, the same must be communicated in writing. Additionally, the arbitrator is required to disclose any circumstances which could potentially cast doubts on their independence or impartiality. If the arbitrator does not fulfill this requirement, which ultimately leads to either party not being aware of the circumstances giving rise to doubts as to the arbitrator’s impartiality and independence, the award is liable to be annulled, further to Article 53(10) of the Arbitration Law.

4. Termination of Arbitrator’s Mandate

An arbitrator’s appointment can be challenged only if circumstances exist that give rise to serious doubts as to their impartiality or independence. Any such challenge can be made for reasons which become apparent after the appointment has been made, and must be made in writing within fifteen days from the date that the challenging party becomes aware of the constitution of the tribunal or of the circumstances justifying the challenge. That said, the challenge would not result in the suspension of the arbitral proceedings and, if the challenge of the arbitrator is successful, the arbitral proceedings already conducted shall be null and void.

Additionally, if an arbitrator is unable to carry out their mission, fails to perform their tasks, or interrupts the performance thereof in a manner that causes an undue delay to the proceedings, and if they do not withdraw and the parties have not agreed to terminate their mandate, then the competent court can order the termination of his mandate upon the request of either party.

A substitute arbitrator is appointed to replace an arbitrator whose mandate was terminated through withdrawal, challenge, revocation, or any other reason. The substitute arbitrator’s appointment is also made in accordance with the rules that were applicable to the appointment of the arbitrator being replaced.

VII. Jurisdiction and Powers of an Arbitral Tribunal

A. Scope of Jurisdiction

In arbitration, “jurisdiction” means the authority of an arbitral tribunal to decide on a matter in dispute. According to the Arbitration Law, the arbitral tribunal cannot exceed its jurisdiction. This means that an arbitral tribunal can only resolve the disputes which the parties refer to it, and it cannot resolve any other dispute that does not form part of the arbitral reference.

In case the arbitral tribunal exceeds its jurisdiction by deciding matters outside of its jurisdiction, the final award relating to that matter will be deemed null and void. Any plea relating to the tribunal’s exceeding of its jurisdiction must be raised immediately; otherwise, the right to raise such an objection is considered to have been waived. In all cases, the arbitral tribunal has the authority to decide whether to admit a later plea or not, as it may accept a later plea if the reason was acceptable and justifiable.

B. Competence-Competence

Competence-Competence is a principle that recognizes the power of an arbitration tribunal to decide on its own jurisdiction, and this concept exists in the Arbitration Law. The arbitral tribunal has exclusive jurisdiction to rule on objections based on its lack of jurisdiction, and the nonexistence, invalidity, or expiry of the arbitration agreement.

According to the Arbitration Law, when the parties to an arbitration agreement bring the dispute before a national court, the court must declare such action as inadmissible, provided that the defendant raises a plea of inadmissibility before filing its defence. The court cannot dismiss an action on its own volition. Where such an action is filed before the national court, it does not affect the commencement or continuance of the arbitral proceedings.

C. Challenging the Arbitral Tribunal’s Jurisdiction

According to the Arbitration Law, where a party wants to raise a plea on the arbitral tribunal’s lack of jurisdiction, such a plea should be raised before or at the time of the respondent’s statement of defense. It can be included within the statement of defense or be made via a separate application. If the objection is not raised within the prescribed time, the parties are deemed to have accepted the tribunal’s jurisdiction. The arbitral tribunal may accept a later plea in exceptional circumstances only. Moreover, the arbitral tribunal may choose on its own motion to adjudicate the pleas regarding its lack of jurisdiction before ruling on the merits of the case, or adjoin them to the merits of the case and rule on them together.

D. Interim Measures

Under the Arbitration Law, parties may grant the arbitral tribunal the authority to order interim measures which are deemed necessary for the dispute, subject to the following conditions:

• The parties to an arbitration agreement must expressly state in the arbitration agreement or a separate agreement that they grant the arbitral tribunal the authority to issue interim measures. This is because the arbitration agreement is not sufficient for granting the arbitral tribunal such authority;
• The arbitration procedure shall be commenced before the arbitral tribunal;
• The arbitrators cannot issue an interim measure unless upon the request of one of the parties. In other words, they do not have the power to grant interim measures of their own volition;
• The measure ordered must be an interim or conservatory measure;
• The interim or conservatory measures must be necessary or appropriate to the subject matter of the dispute;
• The general provisions to issue an interim measure shall exist.

The legal test to be satisfied for interim measures is as follows:

• The possibility of the existence of the right or legal status related to the measure must exist.
• An urgency and a fear of irreparable harm to the parties’ right must exist.
• The ordered measure must be a temporary measure that does not relate to the subject matter of the dispute.
• The issuance of the measure must result in the avoidance of dispute between the parties.

The interim measures are issued in the form of a decision and it might not be justified, and parties cannot appeal or file a case for the annulment of the decision.

In cases where the award debtor does not execute comply with the interim measures ordered by the Tribunal, the other party may request the arbitral tribunal to authorize it to undertake the necessary procedures for the execution of the order. This is without prejudice to the said party’s right to apply to the court for an execution order.

Regarding security for costs and security for claim, both are interim protective measures that the arbitral tribunal can mention during the arbitration. A party seeks it when they are concerned that the other party may not be able to pay the adverse costs or fear the inability of satisfying the award. Such measures require a party to set aside a sum of money that any eventual awards order. In this respect, the arbitral tribunal may require any of the parties to provide proper security to cover the costs of the ordered measures and to post sufficient security.

Furthermore, according to Article 14 of the Arbitration Law, the competent court may order interim or conservatory relief whether before or during the commencement of the arbitral procedures.

VIII. Conduct of Proceedings

As the Arbitration Law doesn’t differentiate between national and international arbitrations conducted in Egypt, save for challenging arbitral awards, it is presumed that parties have the ultimate liberty in either case to choose the arbitration procedures. It is imperative that parties are treated equally, to ensure procedural fairness and to give them the chance to advocate their positions.

Article no. 26 of the Arbitration law states that parties of the arbitration shall be treated equally, and be given equal opportunity to present their cases. Hence, the arbitral tribunal respects the right of defense as much as the judicial tribunal does, and all parties of the arbitration must be given equal and full opportunity to argue and defend their position.

However, it differs when it comes to deciding. As the judge may never decide based on his/her personal knowledge and his/her judgement shall be null and void in such scenario (Egyptian challenge no. 9429 of 66 judicial), but for the arbitrator, as a general rule, she/he may decide based on her/his personal information, because the parties (mostly) select and choose the arbitrators for their expertise and background knowledge of the subject of the dispute to be reflected on the award.

The Arbitration Law No. 27 of 1994 does not expressly state whether the arbitrator must issue the award based on personal knowledge because of the judicial principle promulgated by the Court of Cassation No. 9424 of the judicial year 66, which stated that the judge shall not rule on the case based on personal knowledge, and such principle, as well as the Code of Civil and Commercial Procedure, are applicable on arbitral matters that are not expressly stated on the Arbitration Law No. 27 of 1994.

A. Commencing Arbitration

The arbitration is initiated as soon as a request for arbitration is filed by the claimant, and the respondent receives the request. Parties are free to agree that the seat of arbitration be outside Egypt. If the arbitration seat is not specified in the arbitration agreement, the arbitral tribunal is required to decide the same in accordance with the circumstances of the dispute and the parties.

Furthermore, for domestic arbitrations, the language of arbitration is prescribed to be Arabic, subject to the parties’ agreement. In international arbitration, if there is no agreement on language, the same is decided by the arbitral tribunal.

All the decisions or awards issued by the arbitral tribunal are also required to be in the agreed language. In some cases, however, the language of oral submissions can be different from memorandums and documents. For instance, it is permissible for parties to agree that oral submissions will be conducted in Arabic, even if the memorandums and arbitration award are drafted in English.

IX. General Principles

The Arbitration Law also outlines some pertinent principles which go to the core of the arbitral process.

A. Confidentiality

Confidentiality is paramount in arbitration. Therefore, arbitral awards cannot be published, except if the parties consent to do so, further to Article 44 of the Arbitration Law.

B. Finality of Awards

Arbitral awards are final and binding, save for any challenge to them pursuant to Article 53 of the Arbitration Law.

X. Evidence and Burden of Proof in Arbitration

Article 25 of the Arbitration Law establishes the notion of party autonomy[6].  Accordingly, parties can choose not to apply the Egyptian law of evidence. For instance, parties may opt for IBA Rules on the Taking of Evidence in International Arbitration or the recently published Prague Rules[7].

The applicable rules of evidence play a fundamental role in determining the outcome of the arbitral case as well as the annulment of the arbitral proceedings. The Arbitration Law authorizes the arbitral tribunal with regard to any question of the admissibility of evidence and the weight to be given to the same. This is because the provisions concerning evidence are limited in the Arbitration Law and specifically addresses witnesses, party-appointed and court-appointed experts, and documentary evidence. Thus, in the absence of an agreement regarding the applicable procedural rules, the Arbitration Law has bestowed the arbitral tribunal with discretionary powers to determine the rules of evidence. In this respect, arbitrators also have the authority to accept or deny a party’s request for an evidentiary procedure without prejudice to the party’s rights to defend.

In an important judgement, the Cairo Court of Appeal accorded a broad discretionary power to the arbitral tribunal in terms of witness and experts[8].  In that case, it was alleged that the arbitral tribunal exceeded its authority by not accepting the parties’ expert evidence, contrary to the parties’ agreement. However, the court ruled that the tribunal’s approach whether or not to accept evidence, and evaluate the relevancy, importance, and viability of the evidence, was within the discretionary power of the arbitral tribunal. As such, the tribunal’s approach did not constitute a ground that warranted the annulment of award[9].  Similarly, the Egyptian Court of Cassation affirmed in another case that the arbitral tribunal’s discretionary power to rule on evidence does not constitute a valid ground for annulment[10].

That said, the Arbitration Law permits courts to lend support to arbitral tribunals if required[11].  According to Article 37, the competent court can assist the tribunal (upon its request) by compelling a witness to appear before the tribunal to give evidence. Furthermore, the order of compelling a witness can be issued in “urgent circumstances” by the competent court. In addition, the competent court may penalize refusing witnesses and impose a fine, in accordance with Articles 78 and 80 of the Egyptian Code of Evidence No. 25 of 1968[12].

XI. Requirements of an Arbitral Award

A. Definition and types of Awards

Neither the Arbitration Law nor the UNCITRAL Model Law defines what constitutes an arbitral award[13].  However, Article 42 of the Arbitration Law stipulates that arbitral tribunals may issue interim, partial, and final awards[14].  The Cairo Court of Appeal has identified certain characteristics that make an arbitral award distinct from other types of decisions that arbitral tribunals may issue in the course of the arbitration proceedings. The Court of Appeal held that an arbitral award is a decision that puts an end to a dispute in a binding manner, and such a decision cannot be changed, save for correction of minor errors. Furthermore, after the issuance of an arbitral award, the dispute is res judicata, even if an action is filed to annul the award[15].  This has also been confirmed by the Egyptian Court of Cassation[16].

B. Decision-Making and Time Limits

Arbitral awards rendered by more than one arbitrator are required to be issued by a majority decision.

If there is no agreement between the parties as to the timeframe for the issuance of the final award, the Arbitration Law prescribes an overall limit of 12 months from the date of the commencement of the arbitration[17].  However, this time limit can be extended by the arbitral tribunal at its discretion for a period not exceeding six months, unless the parties have agreed on a longer period.

Pursuant to Article 45(2) of the Arbitration Law, if a tribunal fails to render an award within the foregoing time limits, either party may request the competent court to issue a decision either to extend the time limit or to terminate the arbitration. If the court decides to terminate the arbitration, either party may file its claim before the competent court that would have had jurisdiction in the absence of an arbitration agreement.

C. Correction and Interpretation of the Award

It is permissible for an arbitral tribunal to issue a correction of the award. Any correction decision should be issued in writing (without the need for conducting a hearing) and should be notified to the parties within thirty days of the date of the award. If the arbitral tribunal exceeds its powers of correction, its decision may be challenged by means of an annulment action, pursuant to Articles 53 and 54 of the Arbitration Law.

Furthermore, Article 49 of the Arbitration Law permits an arbitral tribunal, upon the request of a party, to give an interpretation or clarification regarding any ambiguity that appears in the dispositive part of the award. The party requesting clarification must notify the other party of the request before presenting it to the arbitral tribunal. Any such clarification must be issued in writing within thirty days from the date of receipt of the request, and the tribunal may extend this period by another thirty days if it deems such extension to be necessary.

D. Settlement

During the arbitral process, parties are free to settle their dispute and request the arbitral tribunal to record the terms of such settlement in the form of an award by consent to terminate the proceedings. A consent award is typically a settlement agreement embodied in the form of an award. Subject to Article 41 of the Arbitration Law, an arbitral award by consent has the same effect as an arbitral award with regard to their enforcement only[18].  However, it should be noted that an award by consent cannot be set aside.

XII. Execution of the Arbitral Award

The execution of a domestic arbitral award is explicitly expressed by the Arbitration Law. However, the execution of a foreign arbitral award is governed by the New York Convention of 1958 (“the Convention”), to which Egypt is a signatory.

A. Execution of National Arbitral Awards

This is dealt with in Articles 55 to 58 of the Arbitration Law. Article 55 recognizes that arbitral awards issued in accordance with the provisions of the Arbitration Law are enforceable. For enforcement, arbitral awards are treated as court judgments, provided that they obtain the requisite exequatur stamp from the court.

Article 56 states that the request for the execution of an arbitral award should be submitted with the original version of the award or a signed copy of the same, a copy of the agreement to arbitrate, a ratified translated version of the arbitral award in the Arabic language from a trusted authority if the award is issued in another language than in Arabic, and a copy of the minutes ascertaining the submission of the arbitral award.

Additionally, Article 58 prescribes two important conditions for enforcement. Firstly, the request for execution should be submitted after the expiry of the period during which an annulment application could be made. Secondly, to ensure that the following conditions are satisfied in the arbitral award:

a- It does not contradict a previously issued judgement by the Egyptian courts on the subject matter of the dispute;

b- It does not include anything that violates public order in the Arabic Republic of Egypt; and

c- It has been properly announced to the losing party.

The execution process is not suspended by an annulment challenge, unless the claimant requests suspension and satisfies upon fulfilment of certain conditions.

Finally, an appeal in this matter is only possible against the court’s order rejecting the execution of the arbitral award. The enforcement of an arbitral award shall not be admissible before expiry of the period during which the action for annulment should be filed with the court registry in respect of article 58/3 of the Arbitration Law.

B. The Execution of a Foreign Arbitral Award:

The general principle under the Convention is that arbitral awards are enforceable in signatory states. However, there are six grounds for challenging the execution of a foreign arbitral award, as set out in Article 5 thereof:

a- The annulment of the agreement to arbitrate.

b- The lack of confrontation between both parties.

c- Settling a dispute not included in the arbitration agreement, or exceeding its limits.

d- Contradiction of the formation of the arbitral tribunal or arbitration proceedings to the arbitration agreement or the law.

e- That the arbitral award is not anymore binding on the parties to arbitration in the country in which the award was issued or issued according to its laws.

f- That the arbitral award has been rescinded or its enforcement has been suspended by the competent authority in the country in which the award was issued or under its law.

Upon fulfilment of these conditions specified in the Convention, the foreign arbitral award shall be executed in Egypt upon being sure of the fulfilment of the condition of reciprocity.

According to Article 7 of the Convention, a state can order the execution of a foreign award under its internal laws or the provisions of another international convention if it is more flexible regarding this matter and permit the execution of the award even if not permitted by the Convention.

The request for executing arbitral awards is submitted in accordance with the normal conditions of filing a lawsuit in Egypt under the Procedure Law.

XIII. Challenging and appealing an award

According to the Court of Cassation Judgement No. 1394 of the judicial year 86, the law of the seat is the applicable law on the process of appealing, challenging and executing the arbitral award.

A.  The appeal of arbitral awards issued in Egypt

Unlike other jurisdictions where it might be possible to appeal an arbitral award, the Arbitration Law does not prescribe a right to appeal to apply for reconsideration of an arbitral award: see Article 52(1) of the Arbitration Law. That said, the only recourse available to parties is to apply for the annulment of arbitral awards, further to Articles 52 to 54.

As to domestic arbitrations, according to Article 54(2), the competent court to decide an annulment challenge is the court of appeal having competence over the court of first instance that would have initially had jurisdiction to adjudicate the dispute. For international arbitrations, the competent court is the Cairo Court of Appeal.

Similar to any other challenges to judgments, Article 54(1) of the Arbitration Law sets a period of time in which to bring a challenge to nullify an arbitral award. Such a period is 90 days from the date of announcement of the arbitral award. The challenge is not hindered even if the losing party waived its right to raise it before the issuance of the arbitral award.

The Arbitration Law provides eight grounds for annulment, which are as follows:

1. There is no arbitration agreement, or if the arbitration agreement is void, voidable, or lapsed by the expiry of its term.
2. One of the parties to the arbitration agreement, at the time of its conclusion, was incapacitated or deficient in accordance with the law governing his capacity.
3. One of the parties to the arbitration is unable to present his defence because he has not been properly notified of the appointment of an arbitrator or the arbitration procedures, or for any other reason beyond his control.
4. The arbitral award excludes the application of the law that the parties agreed to apply to the subject matter of the dispute.
5. The arbitral tribunal was formed or the arbitrators were appointed in a manner contrary to the law or the agreement of the parties.
6. The arbitral award settles on issues not covered by the arbitration agreement or exceeds the limits of this agreement. Nevertheless, if it is possible to separate the parts of the award related to the issues subject to the arbitration from the parts related to the issues not subject to it, then the nullity shall only apply to the last parts.
7. A nullity occurs in the arbitral award, or the arbitration procedures are affected by a nullity rendering the award itself null.
8. The court, which settles the challenge for nullity lawsuit, decides on its own that the arbitral award is invalid if it contains something that contradicts the public order in the Arab Republic of Egypt.

These grounds are limited. In practice, the court’s approach to an annulment challenge is conservative. In other words, the court will not annul an arbitral award for any other generic grounds such as breach of the law, false application of the law, misunderstanding of case facts by the appointed arbitrator, or false adaptation of the facts.

That said, the general wording of Article 54(1)(g) does provide some flexibility to develop grounds which are not explicitly specified therein, such as insufficiencies and contradictions in the tribunal’s reasoning and decision.

The annulment procedures under the Arbitration Law pursuant to Articles 52 and 53 of the Arbitration Law is setting aside the final award. As, the arbitral award cannot be appealed as Article 52 states that the court might set aside the award and not appeal the final award, and the action of setting the final award aside pursuant to the list of grounds to challenge an arbitral award stated in article 53 of the Arbitration Law. Further, an appeal means that the court’s work involves a de novo review of the award which means reviewing the facts and the law of the award while setting aside the final award does not involve de novo the arbitral award in other words the court will not review the facts of the award and the court will only be limited to examining the listed grounds stated in article 53 for annulment of the arbitral award.

By that, the court will not review the factual findings of the tribunal and the applied law however it will only review the existence of one of the listed grounds of the arbitral award annulment pursuant to Article 53 of the said law, which affects the reason behind going through annulment of the arbitral award and stating the failure of the arbitral tribunal in some cases throughout the arbitration proceedings.

However, the court reviews the law if the arbitral award violated the public policy, as the violation might occur when the subject matter of arbitration cannot be settled through arbitration such as criminal matters.

XIV. Remote Hearing

Remote hearings are not a novel concept in the context of arbitration. The technology required to conduct remote hearings has been available for years and has been leveraged to conduct portions of proceedings, such as cross-examining a witness via video conference. However, prior to the onset of COVID-19, conducting an entirely remote hearing in an arbitration context was relatively rare. But, given the ongoing confinement measures imposed by many jurisdictions, an increasing number of arbitration hearings are now proceeding via online video platforms in order to mitigate the effects of COVID-19 and ensure that cases are heard without undue delay.

Article 28 of the Arbitration Law grants broad discretionary powers to the arbitral tribunal, allowing it to choose any venue it considers suitable for the hearing[19].  This provision is generally worded, and does not expressly refer to remote hearings or whether the parties are allowed to use technology such as video conferencing. However, according to CRCICA Arbitration Rules (“CRCICA Rules”), which stipulates that arbitration proceedings could be held remotely, article 28(4) of the same allows the questioning of witnesses, including expert witnesses, using modern audio and video telecommunication methods that do not include physical attendance at the proceedings[20].  Otherwise, there are no additional details in the CRCICA Rules about complete virtual proceedings.

XV. Conclusion

Since its promulgation in 1994, the Arbitration Law has provided Egypt with its first comprehensive legislative framework for arbitration. As the process aims to follow the international best practices, arbitration should continue to gain traction in Egypt as a form of dispute resolution. The Egyptian government and organizations such as CRCICA are continuing to strive towards that goal, and it is hoped that Egypt will be a preferred jurisdiction for both domestic and international arbitration in the near future.