Presidential Decree No. 335 of 2019 of the Arab Republic of Egypt

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Official Gazette - Issue 28, Part (A) on July 11, 2019

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Presidential Decree of the Arab Republic of Egypt

No. 335 of 2019

Establishing a Center for Arbitration and Dispute Resolution

Arising from the Application of Laws Governing Non-Banking Financial Transactions

President of the Republic

Having reviewed the Constitution;

And the Civil Code;

And the Law on Civil and Commercial Procedure;

And the Law on Evidence in Civil and Commercial Matters;

And the Law on Private 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 the Government Accounting Law issued by Law No. 127 of 1981;

And the Central Audit Organization Law 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 Depository and Registration of Securities issued by Law No. 93 of 2000;

And the Real Estate Financing Law issued by Law No. 148 of 2001;

And the Law on the Establishment of Economic Courts issued by Law No. 120 of 2008;

And Law No. 10 of 2009 on Regulating Supervision over Non-Banking Financial Markets and Instruments;

And Law No. 141 of 2014 on Regulating the Microfinance Activity;

And the Law on Regulating the Activity of Financial Leasing and Factoring issued by Law No. 176 of 2018;

And after taking the opinion of the Board of Directors of the Financial Regulatory Authority;

And based on what the State Council deemed appropriate;

Decided:

(Article One)

A non-profit center for arbitration and dispute resolution arising from the application of laws governing non-banking financial transactions is hereby established, named the "Egyptian Center for Optional Arbitration and Non-Banking Financial Dispute Resolution".

The Center shall have independent legal personality, and its bylaws shall determine its headquarters.

The Financial Regulatory Authority shall provide the Center with a suitable premises and equip it with the necessary facilities and tools for its work, referred to in this Decree as "the Authority".

The Center shall also be provided with a sufficient number of staff according to the rules determined by its bylaws.

(Article Two)

The Center shall handle arbitration and dispute resolution arising from the application of laws governing non-banking financial transactions, particularly those arising between partners, shareholders, or members of companies and entities operating in the non-banking financial markets sector, whether among themselves or between them and such companies and entities, as well as disputes between users or beneficiaries of non-banking financial activities and such companies and entities in connection with their conduct of such activities, subject to the provisions of Egyptian laws governing arbitration and dispute resolution.

The Center's jurisdiction for arbitration and dispute resolution shall only be established if the parties to the dispute agree to refer to the Center, whether before or after the dispute arises.

In carrying out its functions, the Center may use mediation, conciliation, or other alternative dispute resolution methods prior to initiating arbitration proceedings, subject to cases where the parties to the dispute explicitly agree that dispute resolution shall be exclusively through arbitration.

The awards issued by the Arbitration Center shall carry the evidentiary force prescribed for arbitrator awards in accordance with the Law on Arbitration in Civil and Commercial Matters.

(Article Three)

Subject to the provisions of laws governing arbitration procedures, requests for arbitration or dispute resolution may be submitted to the Center electronically, as detailed in the Center's bylaws.

(Article Four)

The Center shall have a Board of Trustees constituted as follows:

• The Chairman of the Authority as Chairman.

• The Vice Chairman of the Authority.

• Four experts and specialists in the field of arbitration and dispute resolution, selected by a decision of the Authority's Board of Directors based on a nomination by the Chairman of the Authority, for a term of four years renewable once.

A decision by the competent Minister applying the provisions of Law No. 10 of 2009 mentioned above shall determine the financial allowances for members of the Board of Trustees.

The Center's bylaws shall determine the frequency of its meetings, quorum for attendance, and decision-making procedures.

The Executive Director of the Center shall attend the meetings, without having a voting right.

In voting, the Board may invite persons whose expertise it deems useful to attend its meetings, without having a voting right in deliberations.

(Article Five)

The Board of Trustees shall, in pursuit of its objectives, supervise the Center's activities and work to facilitate the means necessary to achieve these objectives, and in particular perform the following tasks:

1. Proposing the rules and procedures governing the Center's work and the fees it charges, for submission to the competent Minister for approval.

2. Approving the rules and conditions required of accredited arbitrators at the Center.

3. Approving the rules for registering experts permitted to conduct mediation or dispute resolution.

4. Approving rules to avoid conflicts of interest for arbitrators, experts, and those managing or working at the Center when performing the Center's duties.

5. Contributing to disseminating awareness and diversifying knowledge regarding the importance of arbitration and alternative dispute resolution methods, particularly in the field of non-banking financial activities, through organizing conferences, seminars, training courses, and issuing specialized bulletins and publications.

6. Approving cooperation and expertise exchange programs with institutions and relevant bodies concerning arbitration and dispute resolution at the local, regional, and international levels.

7. Approving the Center's draft budget and final accounts.

8. Evaluating the Center's performance and monitoring its operations.

9. Proposing any amendments to the Center's bylaws for submission to the Authority's Board of Directors.

In accordance with the results of practical application.

(Article Six)

The Center shall have a full-time Executive Director from among experts and specialists in arbitration and dispute resolution, preferably with experience in non-banking financial activities. Their appointment and financial duties shall be determined by a decision of the Board of Trustees based on a nomination by the Chairman of the Board of Trustees, for a term of four years renewable once, all in accordance with the rules determined by the Center's bylaws.

The Executive Director shall be responsible for managing and facilitating the Center's financial and administrative affairs, supervising its operations, and representing the Center before courts and third parties, and shall in particular perform the following:

1. Proposing rules governing the Center's work.

2. Proposing the rules and conditions required of accredited arbitrators at the Center.

3. Proposing rules for registering experts permitted to conduct mediation or dispute resolution.

4. Supervising the organization of conferences and seminars that serve the Center's work.

5. Implementing decisions of the Board of Trustees related to the Center's activities.

6. Preparing the draft annual report on the Center's activities and submitting it to the Board of Trustees.

7. Preparing or reviewing draft cooperation agreements and memoranda of understanding proposed by the Center for submission to the Chairman of the Board of Trustees for approval.

8. Preparing the Center's draft budget and final accounts and submitting them to the Board of Trustees.

9. Any other tasks assigned by the Board of Trustees that fall within the scope of the Center's work.

(Article Seven)

The financial resources of the Center shall consist of the following:

1. Funds or assets allocated to it by the State or the Authority.

2. Dispute resolution and arbitration fees, and compensation for services provided to third parties.

3. Donations, grants, and gifts directed to the Center and approved by the Board of Trustees, within the scope of the Center's objectives.

4. Any other financial resources approved by a decision of the Board of Trustees, within the scope of the Center's objectives.

Expenditures from these resources shall be allocated to the Center's operational areas.

The Center shall have a special budget prepared in accordance with the State's general budget. Its fiscal year shall begin and end with the State's fiscal year. The Center shall maintain a special account with the Central Bank within the unified Treasury account, and the Center shall be subject to the provisions of the Government Accounting Law.

The Central Audit Organization shall be responsible for auditing the Center's accounts.

(Article Eight)

The competent Minister shall, based on the proposal of the Board of Trustees, issue the Center's bylaws and the rules and procedures governing its work within six months from the date of implementation of this Decree.

(Article Nine)

This Decree shall be published in the Official Gazette and shall take effect from the day following its publication.

Issued at the Presidency on 8 Dhu al-Qi'dah, 1440 AH (Corresponding to July 11, 2019 AD)

Abdel Fattah El-Sisi