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New Regulations for the Settlement

New Regulations for the Settlement of Investment Disputes
Since January 2011 and because of the growing number of disputes between investors and various official bodies and agencies, various decrees were issued in an attempt to provide a non-judicial course of settlement. The most important one was the Decree-Law No. 4 of 2012, issued by the Supreme Council for the Armed Forces (“SCAF”)[1] in January of last year (discussed in the February 2012 Issue of Egypt Legal Update) which introduced a new provision in the Investment Guarantees and Incentives Law No. 8 of 1997 for the settlement of investment disputes. As part of the continuation of this process, the Prime Minister recently issued Decree No. 1067 of 2012 concerning the reorganization of the committee (the “Committee”) which seeks to amicably settle disputes between investors and the State organs (the “Decree”).[2]
Composition of the Committee
The new Decree states that the Committee is to be headed by the Prime Minister and includes sixteen other members, namely the Ministers of Justice, Investment, and Parliamentary Affairs, and the President and Deputy President of the State Council, the Senior Legal Counsel of the Cabinet, as well as representatives from the Armed Forces, Intelligence, Administrative Control, and seven Councilors from the Court of Cassation, Ministry of Justice and Appeal Court.
Jurisdiction
The Decree further states that the Committee is responsible for looking into the disputes arising from agreements entered into between investors and organs of the State in it order to reach amicable resolutions thereto in a manner “which preserves public funds and provides for a balance between the parties thereto”.
How the Committee Functions
  • The Committee may form sub-committees to review specific disputes;
  • The Committee is required to meet the involved parties or their representatives;
  • Experts may be called upon to provide opinions;
  • Proceedings of the Committee are confidential;
  • The proposal for settlement is submitted from the Committee to the Prime Minister for final approval.
Conclusion
The new Decree does not provide for a clear breakthrough, since such Committee has existed since the original Law was passed in 1997. Since then, the Committees has been sometimes active, sometimes not. What gives such Committees effect and value is the willingness of the government to truly resolve those disputes fairly. Establishing new committees does not advance the cause of investment.   [1] SCAF’s Decree-Law No. 4/2012 amending certain provisions of Investment Guarantees and Incentives Law No. 8/1997, Official Gazette, Issue No. 52 (bis) (h), 3 January 2012. [2] Prime Minister’s Decree No. 1067/2012 on the reorganization of the committee which seeks to amicably settle disputes between investors and the State organs, Official Gazette, Issue No. 44, 1 November 2012.
Since January 2011 and because of the growing number of disputes between investors and various official bodies and agencies, various decrees were issued in an attempt to provide a non-judicial course of settlement. The most important one was the Decree-Law No. 4 of 2012, issued by the Supreme Council for the Armed Forces (“SCAF”)[1] in January of last year (discussed in the February 2012 Issue of Egypt Legal Update) which introduced a new provision in the Investment Guarantees and Incentives Law No. 8 of 1997 for the settlement of investment disputes. As part of the continuation of this process, the Prime Minister recently issued Decree No. 1067 of 2012 concerning the reorganization of the committee (the “Committee”) which seeks to amicably settle disputes between investors and the State organs (the “Decree”).[2]
Composition of the Committee
The new Decree states that the Committee is to be headed by the Prime Minister and includes sixteen other members, namely the Ministers of Justice, Investment, and Parliamentary Affairs, and the President and Deputy President of the State Council, the Senior Legal Counsel of the Cabinet, as well as representatives from the Armed Forces, Intelligence, Administrative Control, and seven Councilors from the Court of Cassation, Ministry of Justice and Appeal Court.
Jurisdiction
The Decree further states that the Committee is responsible for looking into the disputes arising from agreements entered into between investors and organs of the State in it order to reach amicable resolutions thereto in a manner “which preserves public funds and provides for a balance between the parties thereto”.
How the Committee Functions
  • The Committee may form sub-committees to review specific disputes;
  • The Committee is required to meet the involved parties or their representatives;
  • Experts may be called upon to provide opinions;
  • Proceedings of the Committee are confidential;
  • The proposal for settlement is submitted from the Committee to the Prime Minister for final approval.
Conclusion
The new Decree does not provide for a clear breakthrough, since such Committee has existed since the original Law was passed in 1997. Since then, the Committees has been sometimes active, sometimes not. What gives such Committees effect and value is the willingness of the government to truly resolve those disputes fairly. Establishing new committees does not advance the cause of investment.   [1] SCAF’s Decree-Law No. 4/2012 amending certain provisions of Investment Guarantees and Incentives Law No. 8/1997, Official Gazette, Issue No. 52 (bis) (h), 3 January 2012. [2] Prime Minister’s Decree No. 1067/2012 on the reorganization of the committee which seeks to amicably settle disputes between investors and the State organs, Official Gazette, Issue No. 44, 1 November 2012.