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Formation of the Ministerial Commit

Formation of the Ministerial Committee for Dispute Resolution under the New Investment Law
On 25 September 2017, the Prime Minister issued Decree No. 2094 of 2017 forming the Ministerial Committee for the Resolution of Investment Disputes under Investment Law 72 of 2017 (the “Decree”).[1]
Background
In May 2017, Investment Law No. 72 of 2017 {the “Law”) was issued to replace Law No. 8 of 1997, in an attempt to attract investments to the country, and facilitate incorporation and post incorporation services for companies operating in Egypt. The Law identifies a list of eligible activities described as “Investment Fields” that are granted certain legal guarantees, benefits and incentives. It sets new rules for the allocation of investment land, and re-identifies the role, functions, and powers of the General Authority for Investment and Free Zones (“GAFI”). Furthermore, the new Law also offers investors a number of ways to resolve investment related disputes, which are namely (i) a petitions committee within GAFI, (ii) a ministerial committee for the resolution of investment disputes, (iii) a ministerial committee for the settlement of investment contracts, and (v) an arbitration centre. The Petitions Committee is established within GAFI to look into any complaints brought before it in relation to administrative decisions. Both ministerial committees provided for under the law are to be mainly comprised of ministers, and their decisions/opinions are ratified by the Cabinet of Ministers. The Ministerial Committee for the Resolution of Investment Disputes – that is the subject of the current Decree – looks into matters referred to it regarding disputes that arise between investors and the state, or one of its bodies. The Ministerial Committee must issue its decisions within 30 days from the last date of hearing the parties, and its decisions become binding and automatically enforceable against relevant authorities from the date that they are ratified by the Cabinet of Minister. Non-compliance with the committee’s decisions is punishable under the Penal Code. This is all without prejudice to the investor’s right to challenge a decision by any of the above committees before court. Finally, the new Law provides for the establishment of a new Centre for Arbitration and Mediation with headquarters in Cairo, and provides for the parties’ right to resort to any means of amicable dispute resolution, including ad-hoc or institutional arbitration, at any point of the dispute.
The Decree
The current Decree trumps a similar decree issued under the repealed Investment Law No. 8 of 1997: Decree No. 1272 of 2015, forming the Ministerial Committee for the Resolution of Investment Disputes. With some variation, both committees – the one established under the previous law and the newly established committee – have a somewhat similar formation. The current Decree states that the Committee shall be chaired by the Minister of Justice, and comprised of the following:
  • The Minister of Investment and International Cooperation.
  • The Minister of Trade and Industry.
  • The Minister of Finance.
  • The Minister of Housing, Utilities and Urban Development.
  • The Minister of Local Development.
  • The General Secretary of the Cabinet of Ministers.
  • The Head of Legislative Affairs at the Cabinet of Ministers (new).
  • A State Council Deputy (new).
  • A Representative of the Administrative Supervisory Authority (new).
Conclusion
The amount of focus and coverage that was placed on passing the Investment Law has raised expectations in a facilitation of investment related matters such as project establishment, licencing, land allocation, taxation, and dispute resolution. A highly ambitious piece of legislation, the Law has attempted to address a number of issues, at the forefront of which is the coordination and consistency between government authorities in a manner which results in a unified and streamlines position vis-à-vis the investor, which should lead to further certainty in the system. However, because the Law attempts to solve many a complicated matter, such as this coordination between different government entities with overlapping jurisdiction, the Executive Regulations, which include guidance on how to implement the provisions of the Law, are much anticipated. In addition, the Law had promised the issuance of a number of other instruments such as an Investment Roadmap by the Ministry of Investment which contains investment priorities based on the country’s economic plan, and a map of all available land for investment, including that which falls under the jurisdiction of other governmental bodies; as well as an Investment Guide to be issued by GAFI in coordination with other government entities containing all requirements for issuing different licenses and approvals. The current Decree, is the first we see following the issuance of the Law last May. It is worth noting that Issuance Article (6) of the Law stated that any disputes that were before the (previous) Ministerial Committee for Investment Disputes, or the Ministerial Committee for the Settlement of Investment Contracts, will be automatically referred to the newly established committees once they are formed.   [1] Prime Minister’s Decree No. 2094/2017 forming the Ministerial Committee for the Resolution of Investment Disputes, Official Gazette, Issue No. 38 (bis) (a), 25 September 2017.
On 25 September 2017, the Prime Minister issued Decree No. 2094 of 2017 forming the Ministerial Committee for the Resolution of Investment Disputes under Investment Law 72 of 2017 {the “Decree”).[1]
Background
In May 2017, Investment Law No. 72 of 2017 {the “Law”) was issued to replace Law No. 8 of 1997, in an attempt to attract investments to the country, and facilitate incorporation and post incorporation services for companies operating in Egypt. The Law identifies a list of eligible activities described as “Investment Fields” that are granted certain legal guarantees, benefits and incentives. It sets new rules for the allocation of investment land, and re-identifies the role, functions, and powers of the General Authority for Investment and Free Zones (“GAFI”). Furthermore, the new Law also offers investors a number of ways to resolve investment related disputes, which are namely (i) a petitions committee within GAFI, (ii) a ministerial committee for the resolution of investment disputes, (iii) a ministerial committee for the settlement of investment contracts, and (v) an arbitration centre. The Petitions Committee is established within GAFI to look into any complaints brought before it in relation to administrative decisions. Both ministerial committees provided for under the law are to be mainly comprised of ministers, and their decisions/opinions are ratified by the Cabinet of Ministers. The Ministerial Committee for the Resolution of Investment Disputes – that is the subject of the current Decree – looks into matters referred to it regarding disputes that arise between investors and the state, or one of its bodies. The Ministerial Committee must issue its decisions within 30 days from the last date of hearing the parties, and its decisions become binding and automatically enforceable against relevant authorities from the date that they are ratified by the Cabinet of Minister. Non-compliance with the committee’s decisions is punishable under the Penal Code. This is all without prejudice to the investor’s right to challenge a decision by any of the above committees before court. Finally, the new Law provides for the establishment of a new Centre for Arbitration and Mediation with headquarters in Cairo, and provides for the parties’ right to resort to any means of amicable dispute resolution, including ad-hoc or institutional arbitration, at any point of the dispute.
The Decree
The current Decree trumps a similar decree issued under the repealed Investment Law No. 8 of 1997: Decree No. 1272 of 2015, forming the Ministerial Committee for the Resolution of Investment Disputes. With some variation, both committees – the one established under the previous law and the newly established committee – have a somewhat similar formation. The current Decree states that the Committee shall be chaired by the Minister of Justice, and comprised of the following:
  • The Minister of Investment and International Cooperation.
  • The Minister of Trade and Industry.
  • The Minister of Finance.
  • The Minister of Housing, Utilities and Urban Development.
  • The Minister of Local Development.
  • The General Secretary of the Cabinet of Ministers.
  • The Head of Legislative Affairs at the Cabinet of Ministers (new).
  • A State Council Deputy (new).
  • A Representative of the Administrative Supervisory Authority (new).
Conclusion
The amount of focus and coverage that was placed on passing the Investment Law has raised expectations in a facilitation of investment related matters such as project establishment, licencing, land allocation, taxation, and dispute resolution. A highly ambitious piece of legislation, the Law has attempted to address a number of issues, at the forefront of which is the coordination and consistency between government authorities in a manner which results in a unified and streamlines position vis-à-vis the investor, which should lead to further certainty in the system. However, because the Law attempts to solve many a complicated matter, such as this coordination between different government entities with overlapping jurisdiction, the Executive Regulations, which include guidance on how to implement the provisions of the Law, are much anticipated. In addition, the Law had promised the issuance of a number of other instruments such as an Investment Roadmap by the Ministry of Investment which contains investment priorities based on the country’s economic plan, and a map of all available land for investment, including that which falls under the jurisdiction of other governmental bodies; as well as an Investment Guide to be issued by GAFI in coordination with other government entities containing all requirements for issuing different licenses and approvals. The current Decree, is the first we see following the issuance of the Law last May. It is worth noting that Issuance Article (6) of the Law stated that any disputes that were before the (previous) Ministerial Committee for Investment Disputes, or the Ministerial Committee for the Settlement of Investment Contracts, will be automatically referred to the newly established committees once they are formed.   [1] Prime Minister’s Decree No. 2094/2017 forming the Ministerial Committee for the Resolution of Investment Disputes, Official Gazette, Issue No. 38 (bis) (a), 25 September 2017.[:]