Ministry of Investment Issues Decis

On 6 February 2018, the Ministry of Investment and International Cooperation issued decision No. 11 of 2018 (the “Decision”)[1] forming two petition committees at the General Authority for Investment and Free Zones (“GAFI”). This is in accordance with Investment Law No. 72 of 2017 (the “Law”), which provided for the creation of petition committees at GAFI branches.

Background

Articles 83 to 91 of the Investment Law provide for the dispute resolution mechanisms available to investors. The overall system is quite similar to repealed investment law No. 8 of 1997, and its amendment in 2015, in that it creates an internal complaints process at GAFI and two Ministerial Committees where bigger disputes between investors and the State can be reviewed. The Law has thus provided for the establishment of Petition Committees at GAFI to look into complaints against administrative decisions undertaken by GAFI itself or other relevant government authorities under the Law. In addition, the Law had provided for the establishment of a Ministerial Committee for Dispute Resolution,[2] and a Ministerial Committee for the Settlement of Investment Contracts,[3] both of which have already been established by Prime Ministerial decrees. Finally, the Law allows for adhoc or institutional arbitration, and it provides for the creation of a new arbitration and mediation centre in Cairo, which has not been established yet. It is worth noting that according to the Law, petition committees must settle complaints that are submitted before them within 30 days from the date of hearing the last of the parties. Said decisions are final and binding to the government authorities in question, with no prejudice to the investor’s right to resort to the regular court system.

Two Petition Committees Established by the Most Recent Decision

The recent Decision has created two petition committees to be headed by a member of a judicial body. The Decision provides that the membership of each of the petition committees is to also include a GAFI representative and an expert. The Decision further states that the petition committees will handle complaints submitted from investors in relation to the provisions of the Investment Law regarding decisions issued by GAFI or other government authorities that grant licenses and approvals. Petition committees are to conclude their meetings every two weeks or whenever deemed necessary by its Head. Meetings are only valid if attended by all sitting members, and decisions are issued by a majority of the votes. Petitions can be submitted on a form that is available at GAFI, and complaints can only be made within 15 days from the date of being notified of the challenged administrative decision. Finally, the Decision provides that GAFI “shall work towards” creating an electronic system for the registration of complaints that will be tied to GAFI’s website.   [1] Ministry of Investment and International Cooperation Decision No. 11/2018 forming two petition committees at the General Authority for Investment and Free Zones, Egyptian Gazette, Issue No. 30, 6 February 2018. [2] 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. [3] Prime Minister’s Decree No. 2376/2017 forming the Ministerial Committee for the Settlement of Investment Disputes in Relation to Investment Contracts, Official Gazette, Issue No. 44 (bis) (b), 5 November 2017.