A Set of Prime Ministerial Decrees

Following the last cabinet reshuffle that included transferring the supervision over the Ministry of Investment and the General Authority for Investment and Free Zones (“GAFI”) to the Prime Minister directly, the Prime Minister issued a number of decrees which re-organize the file in order to reactivate it once more. Following are those key decisions:

• Decision No. 3147 of 2019[1] which re-organized the ministerial economic committee so that it is attended by the director of GAFI instead of the minister of investment. It is worth noting that this committee is chaired by the Prime Minister and includes the governor of the central bank, as well as the ministers of planning, finance, international cooperation, industry and trade, and public business sector. The amendment stated that the committee must meet on a weekly basis.

• Decision No. 3148 of 2019[2] which re-organized the ministerial committee for the settlement of disputes pertaining to investment contracts such that it is attended now by the director of GAFI instead of the minister of investment. GAFI director also acts the rapporteur of the committee. This is the committee which looks at complaints made by investors on one subject only, which is the failure of governmental authorities to implement contracts entered into with investment companies, and proposing solutions which lead to the speedy implementation of those contracts.

• Decision No. 3149 of 2019[3] which re-organized the ministerial committee for the resolution of investment disputes, also by replacing the minister of investment with the director of GAFI. But whereas the committee referred to above only deals with disputes pertaining to investment contracts, this committee has a much wider jurisdiction as it considers all problems and complaints made by investors against various government agencies and authorities on all matters other than contracts, including licenses, fees, and procedures.

• Decision No. 3150 of 2019[4] which provides the new rules for the operation of the technical office of the ministerial committee for the resolution of investment disputes. This is the decree which provides the procedures and criteria for the functioning of the dispute settlement committee within GAFI including how investors submit their complains with supporting documents, how GAFI creates the subcommittee that looks at each file with the government authority responsible, and how it issues its own recommendation to the ministry committee which takes the final decision. It is important to note that GAFI now has the power to mediate between the two parties, the investor and the government entity, in order to try to reach an amicable solution that suits both sides.

• Finally, Decision No. 3152 of 2019[5] according to which the Prime Minister, in his capacity as the minister in charge of investment, delegated his authorities to the director of GAFI under the companies and investment laws, except those powers that cannot be delegated by law, thus making the director of GAFI in effect empowered with most of the authorities that were previously in the hands of the minister of investment.

Conclusion

This set of decisions aim at empowering GAFI to reclaim some of its lost powers and authorities since the amendment of the investment law in 2015 which reduced its independence and standing. From that perspective these decisions must be welcomed by the investment community. However it remains that the aim should not be putting GAFI under the supervision of the Prime Minister and then the latter reassigning his authorities to the director of GAFI once again, but rather undertake the full and correct reform in the investment law itself which means amending those articles pertaining to GAFI such that it becomes independent once more and with full power to promote investment and resolve investors problems.   [1] Prime Ministerial Decree No. 3147/2019 amending Article (1) of Prime Ministerial Decree No. 3371/2016, Official Gazette, Issue No. 51 (bis) (d), 25 December 2019. [2] Prime Ministerial Decree No. 3148/2019 forming the ministerial committee for the settlement of disputes pertaining to investment contracts, Official Gazette, Issue No. 51 (d), 25 December 2019. [3] Prime Ministerial Decree No. 3149/2019 forming the ministerial committee for the resolution of investment disputes, Official Gazette, Issue No. 51 (d), 25 December 2019. [4] Prime Ministerial Decree No. 3150/2019 providing the new rules for the operation of the technical office of the ministerial committee for the resolution of investment disputes, Official Gazette, Issue No. 51 (d), 25 December 2019. [5] Prime Ministerial Decree No. 3152/2019 empowering the director of the General Authority for Investment and Free Zones with the authorities of the Minister of Investment, Official Gazette, Issue No. 51 (d), 25 December 2019.