Mediation in Egypt

Quick Facts

• Legal Framework: Mediation in Egypt follows court connected mediation programmes in family courts and economic courts. In family courts, mediation is conducted by a court staff member, while in economic courts, mediat...
• Cultural Approach: Egypt has a rich history of embracing mediation throughout its history, religion, culture, and legal system. Ancient Egyptian history shows that from Ptolemaic Egypt (305-30 BC), it was commonplace fo...
• Typical Costs: According to IFC-World Bank data, enforcing business contracts through Egyptian courts takes an average of 1,010 days at a cost of 26% of the claim value. Mediation through centres like AMC, CRCICA, a...

Mediation Research

Legal Framework

Mediation in Egypt follows court connected mediation programmes in family courts and economic courts. In family courts, mediation is conducted by a court staff member, while in economic courts, mediation is conducted by a judge. These programmes have promoted mediation use but litigants are not satisfied and view these processes as a useless step to litigation. Arbitration is regulated under Arbitration Act no. 27 of 1994, which is influenced by the UNCITRAL Model Law on International Commercial Arbitration (1985). Egypt is a signatory to the New York Convention. Egyptian courts give preference to arbitration rules agreed by parties provided there is no breach of mandatory provisions of the Arbitration Act or Egyptian public order and morals. There is no comprehensive standalone mediation law. The International Finance Corporation has conducted projects to support mediation in Egypt, North African countries, and the MENA region. The UN has published the UNCITRAL Model Mediation Law in Arabic for Arab countries to follow.

Court System

Courts in Egypt have court related mediation programmes in familial and economic courts. Cairo Economic Courts were established in 2008 to resolve particular kinds of conflicts before judges with specialised business knowledge and experience. However, court connected mediation programmes have not been successful as litigants view them as useless steps to litigation. The IFC-World Bank reports that enforcing business contracts takes Egyptian courts an average of 1,010 days at a cost of 26% of the claim value, demonstrating the need for more efficient ADR mechanisms. Courts respect arbitration agreements and issue rulings of inadmissibility when valid arbitration agreements exist. Requirements for enforcement of awards include that the subject-matter must not have been subject to a previous Egyptian ruling, there must be no violation of Egyptian public policy, and the award must be validly notified.

Mediator Regulations

Mediators in court connected programmes are either court staff members (family courts) or judges (economic courts). There is no comprehensive national accreditation system for private mediators. The three main mediation centres - Arab Mediation Centre (AMC), Cairo Regional Centre for International Commercial Arbitration (CRCICA), and Investors Dispute Resolution Centre (GAFI) - have their own mediator selection processes. There is a need for development of competent mediators and well-designed mandatory mediation programmes. The IFC mission in Egypt notes that completion of mediation initiatives between 2011-2014 led to 457 cases resolved through mediation in economic courts, GAFI's mediation centre, CRCICA, and private mediators. Professional development is available through international initiatives and the mediation centres.

Cultural Approach

Egypt has a rich history of embracing mediation throughout its history, religion, culture, and legal system. Ancient Egyptian history shows that from Ptolemaic Egypt (305-30 BC), it was commonplace for the State to deal with disputes by first directing them to mediation. This historical foundation provides strong cultural support for modern mediation practices. Egyptian culture values consensus-building and amicable settlement, which aligns well with mediation principles. However, current court connected mediation programmes are viewed skeptically by litigants as unnecessary steps. There is a great need for awareness campaigns on mediation and its possible benefits to shift cultural perceptions. The foundation for Egypt's embrace of mediation is well established through historical practices and international initiatives.

Typical Costs

According to IFC-World Bank data, enforcing business contracts through Egyptian courts takes an average of 1,010 days at a cost of 26% of the claim value. Mediation through centres like AMC, CRCICA, and GAFI offers significant cost savings. Court-connected mediation programmes are part of court proceedings. Private mediation through institutions charges fees based on case complexity and mediator expertise. The IFC mission reports that 457 cases resolved through mediation between 2011-2014 led to release of $422,801,421 through settlement agreements. The cost savings compared to litigation are substantial, making mediation attractive for commercial disputes. Legal costs in litigation are governed under Law no. 90 of 1944, with fees usually a percentage of claim value, borne by the losing party.

States and Regions