New Law to Regulate the Branches of

Law No. 162 of 2018 on the establishment and regulation of branches of foreign universities and educational institutions was issued last week (the “Law”).[1] The Law, as clear from its title, aims at regulating the establishment of branches of foreign universities and educational institutions in Egypt in order to "develop the higher education and scientific research system ... strengthen the ties between this system and its counterparts in developed countries, offer international higher education opportunities within the country, as well as preserve the national identity of Egyptian students”.

Branches of Foreign Universities

The branches of foreign universities mentioned in the Law are those: that are established and run by foreign universities if they bear their operating costs; international branches of universities that are established by an Egyptian natural or legal person by virtue of an agreement with the foreign university; and the branches established by Egyptian universities in collaboration with foreign universities. The Law specifies that the branches being established should be "for foreign universities that are scientifically distinguished".

Procedures for Establishing a Foreign University Branch

A foreign university branch will be established by virtue of a Presidential decree upon the request of the Minister of Higher Education and the approval of (a) the committee to examine and study the requests to establish foreign universities branches formed by virtue of a Minister of Higher Education’s decision; (b) the “concerned entities/authorities” which are not defined in the Law, and (c) the Cabinet. The decree to establish the branch shall include:

• Colleges and institutes under the branch.
• Study programs.
• Councils that will assume the administration.
• Scholarships rules provided by the branch.
• Degrees awarded.

The Board of Trustees of the Branch should include two representatives of the Ministry of Higher Education. The Minister will also appoint an adviser who will act as a liaison between the different governmental authorities and the branch administration. Guarantees and Benefits The Law shall guarantee to the branches of foreign universities the following:

• The exercise of academic and institutional freedom and independence.
• Facilitation of licensing.
• Providing the appropriate land at the expense of the branch.
• Facilitating the process of obtaining the equivalence of degrees awarded by the branch.

Financial Treatment

The branch shall manage its funds freely and shall determine its academic tuition, provided that it is paid in Egyptian pounds for Egyptian students and foreign currencies for foreign students. The branch may not increase the tuition except in the proportions to which students were notified when they first enrolled in the study programs. A foreign university branch will have the following financial burdens:

• A license fee paid one time and will not exceed 5% of the estimated budget for the establishment of the branch,
• An annual fee of 2% of the total value of tuition fees which will be directed for the health and social care of Egyptian faculty members in Egyptian universities.
• An annual allocation of grants to students and faculty members which will allow them to study or train at the main foreign university.

Council of Branches of Foreign Universities

Finally, the Law stipulated the formation of the Council of Foreign Universities Branches at the Ministry of Higher Education under the chairmanship of the Minister and the membership of the branch heads and the minister's advisors. The Council is responsible for monitoring and maintaining the quality of education within the branches and the coordination between them.

Conclusion

The main goal of the Law is important and positive as it seeks to provide opportunities for world-class education in Egypt and to reduce the expenditure of foreign national resources on university education abroad. However, the Law includes a number of restrictions and unrequired interventions by the state which may limit the establishment of foreign universities branches in Egypt. The most important restrictions are the obligation to appoint representatives of the Ministry of Higher Education in the Board of Trustees of a university branch, and the imposition of a fee directed to the health and social care of the faculty members of the Egyptian universities. In addition, the Law stipulates that the license will be issued only upon the approval of the "concerned entities/authorities” without defining them which negatively affects the transparency and credibility of the Law.   [1] Law No. 162/2018 on the establishment and regulation of branches of foreign universities in Egypt and educational institutions, Official Gazette, Issue No. 31 (cont.) (a), 2 August 2018.