Egyptian Judicial System

Companies may face corruption risks when dealing with Egypt's judiciary. Quite a low percentage of companies identify the courts as a major constraint to doing business in Egypt ( ES 2013 ), yet two-thirds of Egyptians perceive the judiciary to be corrupt ( GCB 2013 ). In addition, the independence of the courts has been challenged by several political conflicts, particularly since the 2011 Egyptian Revolution ( BTI 2014 ). Business executives believe the courts are only moderately independent ( GCR 2015-2016 ).

Businesses describe the legal framework as being moderately efficient in terms of settling disputes and protecting property rights (GCR 2015-2016). Dispute resolution processes can be slow and costly; the average cost required to resolve insolvency is higher than the regional average, while enforcing a contract is almost twice as time-consuming ( DB 2016 ). The legal framework regarding the settlement of disputes in Egypt is in place; for instance, the country has ratified the International Centre for the Settlement of Investment Disputes Convention (ICSID). Nonetheless, courts do not always recognize foreign arbitration judgments, so companies are advised to include clauses in their contracts specifying provisions for binding international arbitration ( ICS 2015 ). The Cairo Regional Centre for International Commercial Arbitration provides access to arbitration laws and to information and services for companies seeking international arbitration solutions to commercial disputes.