The Spread of Arbitration Centres in Egypt: A Promising Opportunity or a Threat to Litigants' Rights?

Introduction

Egypt has seen a marked growth in arbitration centres in recent years. The trend is positive in essence, but it raises a fundamental question: how does the number of centres affect the quality of arbitral awards and whether they can be enforced?

Advantages

• Relieving the courts and resolving disputes faster
• Specialisation and expertise (engineering, maritime and financial arbitration)
• Procedural flexibility and commercial confidentiality
• Encouraging foreign investment

Challenges

• The spread of sham centres that award titles such as "International Arbitration Consultant" with no legal value
• No uniform quality standards, and weak oversight
• Penalties that do not deter, which allows the practice to continue
• Difficulty obtaining an enforcement order because of procedural defects

Why the enforcement order is the heart of the matter

An arbitral award is not in itself enforceable; it needs an enforcement order from the state courts (Article 56 of Arbitration Law No. 27 of 1994). Under Article 58, enforcement requires that the award does not conflict with an earlier court judgment, does not breach public policy, and has been properly served on the party against whom it was made.

If the award was issued by a centre that lacks competence, the judge may refuse to issue the enforcement order, or the award may face an action for annulment (Article 53) within 90 days of its service. The award then loses its practical value and the rights of the party in whose favour it was made are lost.

Key recommendations

• Establish a specialist supervisory body to oversee arbitration centres
• Tighten the penalties for sham centres and for impersonation
• Issue an official list of centres approved by the Ministry of Justice
• Adopt uniform quality standards in line with international standards
• Raise legal awareness of how to check whether a centre is credible

Conclusion

Arbitration is a cornerstone of alternative justice, but enforcing its awards depends on their being issued by reliable centres such as the Cairo Regional Centre for International Commercial Arbitration (CRCICA). Today the responsibility lies with the legislature to strike a balance between encouraging arbitration and protecting the parties' rights.