Economic Commercial Disputes

Economic and Commercial Disputes Under Egyptian Legislation

Economic and Commercial Disputes Under Egyptian Legislation: A Comprehensive Legal Analysis


Economic and Commercial disputes play a significant role in shaping the business landscape of any country, and Egypt is no exception. As a thriving economy in the Middle East and North Africa region, Egypt has established a robust legal framework to address economic disputes. This article aims to provide a comprehensive legal analysis of economic disputes under Egyptian legislation, highlighting the relevant laws, procedures, and mechanisms available for resolving such disputes.


I. Legal Framework for Economic Disputes:


A. Constitution of the Arab Republic of Egypt:
The Constitution of Egypt serves as the supreme law of the land and provides a foundation for the legal framework governing economic disputes. It guarantees the right to property, economic freedom, and the right to have access to justice.

B. Civil and Commercial Codes:

The Egyptian Civil Code and the Commercial Code are fundamental pieces of legislation governing economic disputes. The Civil Code provides principles for contractual relationships, while the Commercial Code specifically regulates commercial transactions, including sales, leases, and agency agreements.

C. Investment Laws:

Egypt has enacted several investment laws to attract foreign and domestic investments. The Investment Law and its amendments provide a legal framework for investment disputes, including the establishment of special courts to handle investment-related cases.

D. Competition Law:

The Egyptian Competition Law aims to promote fair competition, prevent monopolistic practices, and protect consumers’ interests. It provides mechanisms for resolving disputes related to antitrust violations and unfair competition.

II. Dispute Resolution Mechanisms:

A. Courts:

1. Economic Courts:
Egypt has established specialized economic courts to handle various types of economic disputes, including commercial, investment, and competition-related cases. These courts have jurisdiction over monetary disputes exceeding a certain threshold.

The economic disputes that would fall under the jurisdiction of the specialized economic courts in Egypt are as follows:

• Competition Law Violations:
Cases involving allegations of antitrust violations, abuse of dominant market position, unfair competition practices, or any other violations of the Egyptian Competition Law.

• Intellectual Property Disputes:
Disputes related to intellectual property rights, including trademark infringement, patent disputes, copyright violations, or trade secret misappropriation.

• Banking and Financial Disputes:
Disputes arising from banking transactions, such as loan agreements, debt recovery, disputes over interest rates, or issues related to financial products and services.

• Insurance Disputes:
Cases involving insurance contracts, such as disputes over coverage, claim settlements, premium payments, or any other issues related to insurance policies.

• Investment Disputes:
Disputes between investors and the government or other parties regarding investment contracts, expropriation, breach of investment agreements, or violations of investment protection laws.

• Disputes related to Securities and Capital Markets:
Cases involving violations of securities laws, insider trading, fraudulent activities, or any other disputes related to capital market operations.

• Shareholder and Partnership Disputes:
Disputes among shareholders or partners concerning ownership rights, profit distribution, management control, or any other issues related to the operation of a company.

• Consumer Protection Disputes:
Cases involving consumer rights violations, misleading advertising, product liability, unfair trade practices, or any other disputes related to consumer protection laws.

2. Commercial Courts:
even before the establishment of the specialized economic courts, Egypt had been recognizing specialized commercial courts competent to handle various types of commercial disputes. Theses courts are still competent to handle various disoutes including:

• Commercial Contract Disputes:
Any disagreements arising from commercial contracts, such as disputes over breach of contract, non-payment of invoices, disputes related to terms and conditions, or interpretation of contractual provisions.

• Real Estate and Construction Disputes:
Disputes involving real estate transactions, construction contracts, land disputes, property ownership, or any other issues related to the real estate and construction industry.

3. Administrative Courts:
The Administrative Courts in Egypt have a specific jurisdiction that focuses on resolving disputes involving public authorities, administrative decisions, and government actions. Here is some more information about the jurisdiction of the Administrative Courts:

• Administrative Decisions and Actions:
The Administrative Courts handle disputes related to administrative decisions and actions taken by public authorities, including government ministries, agencies, local authorities, and other administrative bodies. These disputes can arise from various areas such as permits, licenses, tenders, public contracts, and regulatory decisions.

• Administrative Contracts:
The Administrative Courts have jurisdiction over disputes arising from administrative contracts. These contracts involve public authorities as one of the parties and may include contracts related to public procurement, public works, or service agreements with the government.

• Public Service Disputes:
Administrative Courts also handle disputes involving public servants and employees of public authorities. These disputes may include matters related to employment contracts, promotions, disciplinary actions, benefits, and other issues concerning public service.

• Constitutional and Fundamental Rights:
The Administrative Courts have jurisdiction to hear cases related to constitutional and fundamental rights violations by public authorities. These cases involve claims of infringement of individual rights guaranteed by the Egyptian Constitution, such as freedom of speech, freedom of assembly, or due process rights.

• Tax and Customs Disputes:
Certain tax and customs disputes fall within the jurisdiction of the Administrative Courts. These disputes typically involve challenges to tax assessments, customs duties, or administrative decisions related to taxation matters.

• Environmental and Planning Matters:
The Administrative Courts handle disputes related to environmental protection, urban planning, zoning regulations, and land use issues. These cases may involve challenges to administrative decisions regarding environmental permits, land development, or environmental impact assessments.

• Disciplinary Actions against Professionals:
When disciplinary actions are taken against professionals, such as doctors, lawyers, or engineers, by their respective professional bodies or regulatory authorities, the Administrative Courts can review these actions and determine their legality and fairness.

• State Liability:
The Administrative Courts also address cases involving claims for damages against the state or public authorities for acts or omissions that have caused harm or losses to individuals or businesses. These cases fall under the area of state liability or administrative tort law.

Overall, the jurisdiction of the Administrative Courts in Egypt covers a wide range of disputes related to administrative decisions, actions, and public authority matters. Their role is crucial in ensuring the legality, fairness, and accountability of administrative actions and protecting the rights and interests of individuals and businesses affected by such actions.

B. Arbitration:

1. Domestic Arbitration:
Parties can opt for domestic arbitration to resolve economic disputes by choosing arbitrators and following the rules set forth in the Egyptian Arbitration Law. The arbitral award has the same enforceability as a court judgment.

2. International Arbitration:
Egypt is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Parties can choose international arbitration to settle cross-border economic disputes, subject to the rules of the chosen arbitral institution.


III. Procedures for Resolving Economic Disputes:

A. Pre-litigation Phase:

1. Negotiation and Mediation:
Parties are encouraged to engage in negotiation or mediation to reach an amicable resolution before initiating formal legal proceedings. Mediation centers, such as the Cairo Regional Centre for International Commercial Arbitration, provide dispute resolution services.

2. Pre-trial Procedures:
Parties are required to undertake mandatory pre-trial procedures, such as submitting a pre-litigation notice or participating in conciliation, when the disputes arose either before the economic courts or before the administrative courts.

B. Litigation Phase:

1. Filing a Lawsuit:
If mediation or pre-litigation procedures fails, the aggrieved party can initiate legal proceedings by filing a lawsuit before the appropriate court. The plaintiff must comply with the procedural requirements, including submitting a statement of claim and supporting evidence.

2. Trial and Judgment:
The court will conduct hearings, examine evidence, and hear arguments from both parties. Upon conclusion of the trial, the court will issue a judgment, which may be subject to appeal.

C. Arbitration Proceedings:

Arbitration proceedings follow the rules agreed upon by the parties or those stipulated in the chosen arbitral institution’s regulations. The arbitration process typically involves the appointment of arbitrators, submission of written statements, witness testimony, and issuance of an arbitral award.

IV. Enforcement of Judgments and Awards:

Once a judgment or arbitral award is obtained, the prevailing party can seek its enforcement through the appropriate channels. The enforcement process involves obtaining an execution writ or applying for recognition and enforcement of foreign arbitral awards, if applicable.


Egypt has established a comprehensive legal framework to address economic disputes, providing various mechanisms for their resolution. The specialized economic courts, administrative courts, arbitration, and alternative dispute resolution methods offer parties flexibility and options to resolve disputes efficiently. Familiarity with the relevant laws, procedures, and enforcement mechanisms is crucial for businesses operating in Egypt, ensuring their ability to safeguard their rights and interests in case of economic disputes.

In particular, the specialized economic courts play a vital role in addressing commercial, investment, and competition-related disputes, among others. Meanwhile, the jurisdiction of the administrative courts ensures a fair and transparent resolution of disputes involving public authorities, administrative decisions, and governmental actions. These courts provide an avenue for challenging administrative decisions, asserting constitutional and fundamental rights, and addressing matters related to public service, tax, customs, and environmental issues.

Parties involved in economic disputes should carefully consider the appropriate forum for resolving their specific dispute, whether it be the specialized economic courts, administrative courts, or alternative dispute resolution mechanisms such as arbitration or mediation. Understanding the jurisdiction, procedures, and available remedies within the relevant legal framework will enable parties to navigate the dispute resolution process effectively.

By utilizing the legal avenues and resources provided under Egyptian legislation, businesses and individuals can seek redress, protect their rights, and contribute to maintaining a fair and stable economic environment in Egypt.