Prime Minister's Decision No. (2597) of 2020 (Updated Version in 2025)

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Prime Minister's Decision No. 2597 of 2020 Issuing the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work

The Prime Minister, Having reviewed the Constitution; And the Civil Code; And the Law on Civil and Commercial Procedures; And the Law on Evidence in Civil and Commercial Matters; And the Law on the State Council issued by Law No. 47 of 1972; And the Law on Special Insurance Funds issued by Law No. 54 of 1975; And the Law on Supervision and Control of Insurance in Egypt issued by Law No. 10 of 1981; And Law No. 127 of 1981 concerning Government Accounting; And the Law on the Central Audit Organization issued by Law No. 144 of 1988; And the Law on Companies Operating in the Field of Receiving Funds for Investment issued by Law No. 146 of 1988; And the Capital Market Law issued by Law No. 95 of 1992; And the Law on Arbitration in Civil and Commercial Matters issued by Law No. 27 of 1994; And the Commercial Law issued by Law No. 17 of 1999; And the Law on Central Deposit and Registration of Securities and Financial Instruments issued by Law No. 93 of 2000; And the Real Estate Financing Law issued by Law No. 148 of 2001; And the Law on Establishing Economic Courts issued by Law No. 120 of 2008; And Law No. 10 of 2009 concerning the Regulation of Supervision on Non-Banking Financial Markets and Instruments; And Law No. 141 of 2014 concerning the Regulation of Financing Activities for Medium, Small, and Micro Enterprises; And the Law Regulating Leasing and Factoring Activities issued by Law No. 176 of 2018; And the Law Regulating Consumer Financing Activities issued by Law No. 18 of 2020; And Presidential Decision No. 335 of 2019 establishing a Center for Arbitration and Settlement of Disputes Arising from the Application of Laws Governing Non-Banking Financial Transactions; And upon the proposal of the Board of Trustees of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes; And upon the opinion of the State Council;

1 - Two new appendices numbered "4" Expedited Arbitration Rules and "5" Electronic Arbitration Rules were added pursuant to Prime Minister's Decision No. (3723) of 2025.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work It is decided: Article (1) Without prejudice to the authorities granted to the Financial Regulatory Authority and the appeal committees stipulated in the laws regulating non-banking financial activities, the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes, along with the rules and procedures governing it and the fees it charges, as attached to this Decision, shall be applied.

Article (2) This Decision shall be published in the Official Gazette and shall be applied from the day following its publication. Issued at the Prime Minister's Office on 25 Rabi' al-Thani 1442 AH (Corresponding to December 10, 2020 AD). Prime Minister Dr. Mostafa Madbouly

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Chapter One: Definitions Article (1) In the application of the provisions of this System, the following words and expressions shall have the meanings indicated alongside each: Authority: The Financial Regulatory Authority. Center: The Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes. Board of Trustees: The Center's Board of Trustees. Executive Director: The Center's Executive Director. Arbitration: A contractual means of settling disputes arising between two or more parties through a binding award by an arbitral tribunal formed for this purpose. Arbitration Agreement: A written agreement by the disputing parties to settle disputes arising between them through arbitration, whether before or after the dispute occurs. Claimant: The party who initiates the request to commence arbitration proceedings, whether single or multiple. Respondent: The party against whom arbitration proceedings are initiated, whether single or multiple. Arbitral Tribunal: A body composed of one or more arbitrators competent to rule on the dispute referred to arbitration. Mediation: A friendly means of dispute settlement whereby the disputing parties entrust a mediation body to bring their viewpoints closer together to reach a settlement. Mediation Body: A body composed of one or more mediators competent to conduct mediation. Parties: The Claimant and Respondent or the mediation parties, as applicable. Advisory Committee: The committee competent to rule on requests and matters referred to it in accordance with this System. Chosen Electronic Address: The means designated by the parties to notify them of arbitration or mediation proceedings, whether consisting of email, fax, or other technological means.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Chapter Two: Provisions Specific to the Center Article (2) The Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes shall enjoy independent legal personality, shall be non-profit, and its headquarters shall be located in one of the Greater Cairo governorates. Competence of the Center Article (3) The Center shall be competent to arbitrate and settle disputes arising from the application of laws governing non-banking financial transactions, particularly those arising between partners, shareholders, or members in companies and entities operating in non-banking financial markets, whether among themselves or between them and such companies/entities, as well as disputes of users or beneficiaries of non-banking financial activities with such companies/entities in connection with their operation. Agreement to Resort to the Center Article (4) Without prejudice to the right to resort to litigation before courts, the parties may agree in writing to settle disputes arising from the application of laws governing non-banking financial transactions through arbitration, mediation, or other alternative dispute resolution methods before the Center. The parties' agreement may be prior to the dispute or subsequent to its emergence. However, if the right is invalid, the request for mediation shall not be accepted. It is mandatory to specify the matters covered by the arbitration or mediation; otherwise, the arbitration agreement shall be void. Tasks of the Center Article (5) The Center shall, in pursuit of its objectives, perform the following tasks and powers:

1. Settling disputes arising from the application of laws governing non-banking financial transactions through arbitration, mediation, or other amicable settlement methods, in accordance with the rules set forth in this System or any other rules agreed upon by the parties.
2. Cooperating and coordinating with other specialized local, regional, and international arbitration and mediation centers and institutions.
3. Organizing conferences, seminars, training courses, and workshops to prepare arbitrators, mediators, and cadres to contribute to spreading awareness and education on the importance of arbitration and amicable dispute resolution methods, particularly in non-banking financial activities.
4. Issuing bulletins, publications, and conducting academic and applied studies and research on arbitration and amicable dispute resolution methods, particularly in non-banking financial activities.
5. Any other tasks or powers necessary to achieve the Center's objectives.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Board of Trustees Article (6) The Center shall have a Board of Trustees constituted as follows:

1. The Chairman of the Authority shall serve as Chairman.
2. The Vice Chairman of the Authority.
3. Four experts and specialists in the field of arbitration and dispute resolution, appointed by decision of the Authority's Board of Management upon nomination by the Authority's Chairman, for a term of four years renewable once. A decision by the competent Minister shall be issued to determine the financial treatment of Board of Trustees members, applying the provisions of Law No. 10 of 2009 concerning the Regulation of Supervision on Non-Banking Financial Markets and Instruments. The Board shall have a Technical Secretariat composed of a number of Center employees, and its formation shall be determined by a decision of the Board Chairman. Competences of the Board of Trustees Article (7) The Board of Trustees shall be competent to formulate the Center's general policies, approve its main plans, and monitor and evaluate the Center's performance in fulfilling its tasks. The Board may take any decisions it deems necessary to achieve its purposes and ensure the regular operation of the Center, and shall in particular:
4. Propose the rules and procedures governing the Center's work related to its technical, financial, administrative, and human resources aspects, and the fees it charges, subject to issuance of a decision by the competent Minister.
5. Approve the rules and conditions required of arbitrators accredited by the Center.
6. Approve the rules for registering experts who may perform mediation or dispute settlement services.
7. Approve conflict of interest avoidance rules for arbitrators, experts, and those managing or working at the Center when performing its tasks.
8. Contribute to spreading awareness and education on the importance of arbitration and amicable dispute resolution methods, particularly in non-banking financial activities, through organizing conferences, seminars, training courses, and issuing specialized bulletins and publications.
9. Approve cooperation and expertise exchange programs with institutions, centers, and entities concerned with arbitration and settlement at the local, regional, and international levels.
10. Approve the Center's estimated budget and final account.
11. Evaluate the Center's performance and monitor its work.
12. Propose any amendments to this System to be submitted to the Authority's Board of Management, based on the results of practical application.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Meetings of the Board of Trustees Article (8) The Board of Trustees shall meet at least twice a month. The Board Chairman or two-thirds of its members may convene it whenever necessary. The Board shall not be validly constituted unless more than half of its members are present, including the Board Chairman or one of his deputies. In the absence of the Chairman, the senior deputy shall preside. In all cases, Board decisions shall be issued by the majority of the attending members. In case of a tie, the Chairman's vote shall prevail. The Executive Director shall attend Board of Trustees meetings without having a voting right. The Board may invite anyone it deems useful to attend its meetings without granting them voting rights in decision-making.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Technical Secretariat of the Board of Trustees Article (9) The Board Chairman shall determine who shall perform the duties of the Board's Technical Secretariat. The Technical Secretariat shall undertake the following:

1. Preparing and sending invitations for Board of Trustees meetings and their attachments.
2. Recording minutes of Board of Trustees meetings.
3. Notifying concerned parties of Board of Trustees decisions.
4. Safeguarding files related to matters discussed at Board of Trustees meetings, the minutes of these meetings, and documents circulated by the Board.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Advisory Committee Article (10) The Center shall have an Advisory Committee consisting of seven members who are specialists and experts in arbitration or dispute resolution, or who have experience in non-banking financial activities. Two of them shall be State Councilors, seconded in accordance with the provisions of the referenced State Council Law, upon nomination by the Board of Trustees. The Committee shall be competent to review and rule on matters referred to it in accordance with this System or other matters specified by the Board of Trustees. A decision by the Board of Trustees shall be issued to form the Committee, determine its other competences, term of membership, and working system. The Committee shall have a Secretariat General determined by the Board Chairman, who shall undertake the same competences outlined in Article (9) regarding the Committee's work.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Executive Director Article (11) The Center shall have a full-time Executive Director nominated by the Board of Trustees Chairman. His appointment and financial treatment shall be determined by a decision of the Board of Trustees, for a term of four years renewable once. Conditions Required of the Executive Director Article (12) The Executive Director of the Center must meet the following conditions:

1. Be an Egyptian national.
2. Have a good reputation and clean record.
3. Not have been previously convicted of a felony or a misdemeanor involving deprivation of liberty for a crime involving breach of honor or trust, unless his reputation has been restored.
4. Enjoy his civil and political rights.
5. Be an expert and specialist in the field of arbitration and dispute resolution, with preference given to those with experience in non-banking financial activities.
6. Not have interests conflicting with his duties or that could affect his impartiality. Competences of the Executive Director Article (13) The Executive Director shall be competent to manage and administer the Center's financial and administrative affairs, supervise its operations, and represent the Center before courts and third parties. He shall in particular:
7. Propose rules governing the Center's work.
8. Propose rules and conditions required of arbitrators accredited by the Center.
9. Propose rules for registering experts permitted to perform mediation or dispute settlement services.
10. Supervise the organization of conferences and seminars serving the Center's work.
11. Implement Board of Trustees decisions related to the Center's activities.
12. Prepare the draft annual report on the Center's activities and submit it to the Board of Trustees.
13. Study or prepare draft cooperation agreements and memoranda of understanding proposed by the Center for submission to the Board of Trustees Chairman for approval.
14. Prepare the Center's estimated budget and final account and submit them to the Board of Trustees.
15. Perform any other tasks assigned by the Board of Trustees falling within the Center's scope. In the event of an impediment preventing the Executive Director from performing his duties, the Board of Trustees Chairman may delegate any senior management employee of the Center to perform any of the Executive Director's competences.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Administrative Staff of the Center Article (14) The Center shall be provided with a sufficient number of employees through secondment from the Authority or outside it, or on a temporary basis to perform the necessary work for administering the Center's affairs, pursuant to a decision by the Executive Director, with the approval of the Board of Trustees, in accordance with the personnel regulations of the Authority. This shall remain until the rules and procedures governing human resources are issued by a decision of the competent Minister. Article (15) The Center's Administrative Staff shall undertake the work necessary for administration under the supervision of the Executive Director, and shall in particular:

1. Receive arbitration, mediation, and other dispute settlement requests and related responses and documents, and notify the parties thereof.
2. Prepare a paper register to archive files of arbitration, mediation, and other dispute settlement requests submitted to the Center, and preserve original awards and decisions issued therein.
3. Prepare an electronic register containing lists of arbitrators and mediators, indicating their qualifications, competences, areas of expertise, and providing them to parties upon request.
4. Preserve minutes of arbitration and mediation sessions and notify parties and concerned parties of session dates and venues, and perform other work necessary for the progress of arbitration or mediation proceedings, in accordance with the arbitral tribunal or mediation body as applicable.
5. Provide information on arbitration and mediation and explain procedures for submitting related requests.
6. Prepare the necessary forms to initiate arbitration and mediation proceedings.
7. Submit reports to the Executive Director on completed tasks and future plans necessary to achieve the Center's objectives.
8. Prepare specialized periodicals, bulletins, and publications and submit them to the Board of Trustees for issuance.
9. Prepare and organize conferences, training courses, and seminars conducted by the Center. The Administrative Staff shall also undertake any other tasks assigned by the Executive Director.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Avoidance of Conflict of Interest Article (16) Members of the Board of Trustees and the Advisory Committee are prohibited from participating in deliberation, discussion, or voting on any matter or decision if any of them, their spouses, or relatives up to the second degree are a party to the matter or decision, or have a direct or indirect legal interest therein, or are represented by or advise any of the parties concerned. They must in all cases disclose any such situations upon their existence. Obligation of Confidentiality Article (17) Without prejudice to rules and laws issued regarding the confidentiality of information and data, members of the Board of Trustees, the Advisory Committee, the Executive Director, and all Center employees are obligated to maintain confidentiality, whether during or after their employment at the Center, by not disclosing or revealing any information, data, or documents related to any arbitration cases, mediation proceedings, or other matters they became aware of through their work at the Center, except after obtaining prior written consent from the parties and within the limits of such consent, without prejudice to cases where specific information must be provided as mandated by applicable legislation.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Financial Resources of the Center Article (18) The Center's financial resources shall consist of:

1. Funds or assets allocated to the Center by the State or the Authority.
2. Dispute settlement and arbitration fees and compensation for services provided to third parties.
3. Donations, grants, and gifts received by the Center and approved by the Board of Trustees within the Center's objectives.
4. Any other financial resources approved by a decision of the Board of Trustees within the Center's objectives. Expenditure from these resources shall be allocated to the Center's work activities. Center's Budget Article (19) The Center shall have a special budget prepared in the manner of the State's general budget. Its financial year shall begin and end with the State's financial year. The Center shall maintain a special account with the Central Bank within the unified Treasury account. The Center shall be subject to the provisions of the Government Accounting Law, and its accounts shall be audited by the Central Audit Organization.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Center's Electronic Register Article (20) Subject to the provisions of Article (17) of this System, the Center shall establish an electronic register in which all data related to arbitration or mediation proceedings conducted by the Center shall be recorded, as specified in this System, particularly the names of the parties, their addresses and contact details, their legal representatives and contact details, arbitration case numbers or mediation requests, summaries of the requests therein, names of arbitrators or mediators as applicable, the date of issuance of the arbitration award or settlement decision, and its operative part. Center's Electronic Website Article (21) The Center shall have an electronic website on the internet representing its public interface, displaying the services it provides. The Center's arbitration and mediation rules, conditions required of accredited arbitrators, rules for registering experts permitted to perform mediation, forms prepared by the Center regarding arbitration and mediation, periodic reports and statistics, and data related to conferences, training courses, and seminars held by the Center shall be published on it.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Chapter Three: Arbitration Rules Scope of Application Article (22) The arbitration rules set forth in this Chapter shall apply when the parties agree in writing to settle disputes arising between them through arbitration in accordance with the Center's rules, whether before or after the dispute occurs. Notice of Arbitration Article (23) The Claimant shall deposit a Notice of Arbitration with the Center. The Notice of Arbitration must contain the following data:

1. Names, addresses, and contact details of the parties.
2. The Claimant's legal representative in the arbitration proceedings, their address, and contact details.
3. A request to refer the dispute to arbitration.
4. Identification of the arbitration agreement relied upon.
5. Details of the contract or legal instrument from which or in connection with which the dispute arose, or a brief description of the relevant relationship if no contract or legal instrument exists.
6. A detailed statement of the facts of the dispute, its value, and the claims.
7. A proposal regarding the number of arbitrators and/or the language of arbitration and/or its seat, if not previously agreed upon by the parties. A copy of the arbitration agreement, as well as a copy of the contract or any other legal instrument from which or in connection with which the dispute arose (if available), shall be attached to the Notice of Arbitration. The Notice of Arbitration may also include:
8. A proposal regarding the appointment of a sole arbitrator as outlined in Article (28) of this System.
9. A notice regarding the appointment of the arbitrator referred to in Article (29) or Article (30) of this System. The Center shall register the arbitration request upon payment of the prescribed registration fee as outlined in Article (63) of this System. Upon registration, the Center shall immediately forward the Notice of Arbitration to the other party/parties. Arbitration proceedings shall be deemed to commence from the date this party/parties receive the Notice of Arbitration. Statement of Defense to the Notice of Arbitration Article (24) The Respondent shall deposit a Statement of Defense to the Notice of Arbitration with the Center within thirty days from the date of receipt of the Notice of Arbitration. The Statement of Defense must contain the following data:
10. Name, address, and contact details of the Respondent.
11. The Respondent's legal representative in the arbitration proceedings, their address, and contact details.
12. Response to the contents of the Notice of Arbitration. The Statement of Defense may also include:
13. Any plea regarding the jurisdiction of the proposed arbitral tribunal.
14. Details of counterclaims or claims related to a right asserted for set-off, if any, including their value and the relief sought.
15. A proposal regarding the appointment of a sole arbitrator as outlined in Article (28) of this System.
16. A notice regarding the appointment of the arbitrator referred to in Article (29) or (30) of this System.
17. A notice of arbitration if the Respondent initiates a claim against a party other than the Claimant under the arbitration agreement. Upon receipt of the Statement of Defense, the Center shall immediately forward it to the other party/parties. Any Statement of Defense regarding counterclaims or set-off claims shall be deposited within thirty days from the date of receipt thereof.

Updated Version of the Basic System of the Egyptian Center for Alternative Dispute Resolution and Settlement of Non-Banking Financial Disputes and Rules and Procedures Regulating Its Work Completion of Data in Notice of Arbitration or Defense Article (25) If the Claimant or Respondent fails to include any data required in the Notice of Arbitration or Statement of Defense, the Center may request that party to complete such data. Any dispute regarding the adequacy of the Notice of Arbitration or Statement of Defense, or delay in sending it without completion, shall not halt the progress of arbitration proceedings. This dispute shall be finally resolved by the arbitral tribunal. Constitution of the Arbitral Tribunal Article (26) Without prejudice to the parties' right to follow other procedures, the arbitral tribunal shall be constituted in accordance with the procedures stipulated in this Chapter, either within the period agreed upon by the parties or within thirty days from the date the Center receives the appointment request from one of the parties if they fail to agree on a period. Arbitrators shall be appointed in accordance with the method agreed upon by the parties in case of agreement to form an arbitral tribunal of more than one or three arbitrators. Number of Arbitrators Article (27) The arbitral tribunal shall be formed of one or more arbitrators. If there are multiple arbitrators, their number must be odd. The arbitral tribunal shall be formed of three arbitrators if the parties have not previously agreed otherwise, or if no agreement is reached within thirty days from the date the Respondent receives the Notice of Arbitration that proceedings shall be conducted through a sole arbitrator. The Center may, upon the request of one of the parties, appoint a sole arbitrator in accordance with the procedures in Article (28), if the thirty-day period elapses without the other party responding to the proposal, or if the concerned party/parties fail to appoint a second arbitrator in accordance with Article (29) or (30), provided it is appropriate given the circumstances of the case. Case of Appointment of a Sole Arbitrator Article (28) The Center shall appoint a sole arbitrator upon the request of one of the parties, in case the parties agree to form an arbitral tribunal of one arbitrator chosen by the Center, or if thirty days elapse from the date the other party/parties receive the proposal to appoint a sole arbitrator and agree to it without reaching a consensus. Subject to any agreed conditions or requirements for the arbitrator, the Center shall appoint the sole arbitrator according to the following procedures:

1. The Center shall send each party an identical list containing at least three names of registered arbitrators.
2. Each party shall return the list to the Center within fifteen days from the date of receipt, after striking out names they object to and numbering the remaining names in their preferred order.
3. The Center shall, upon expiration of the aforementioned period, appoint the sole arbitrator from the names approved by the parties in the returned lists, observing the preferred order chosen by the parties. If the Center is unable to appoint the sole arbitrator, it shall follow the aforementioned procedures, taking into account as much as possible any agreed conditions or requirements and any other considerations ensuring the appointment of an independent and impartial arbitrator. Case of Appointment of Three Arbitrators Article (29) If the parties agree to form an arbitral tribunal of three arbitrators, each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the third arbitrator, who shall preside over the arbitral tribunal. If one party notifies the other party of the appointment of an arbitrator and the latter fails to notify the first party of the arbitrator they appointed within thirty days from the date of receipt of the notice, the Center shall appoint the second arbitrator upon the request of the first party. If thirty days elapse from the date of appointment of the second arbitrator without the two arbitrators agreeing on the appointment of the presiding arbitrator, the Center shall appoint this arbitrator, and the provisions of this case shall apply to his appointment.