Egypt and Tunisia occupy an important place on the map of international commercial arbitration in North Africa. With developed legal systems and arbitration institutions, these countries provide businesses with flexible and reliable mechanisms for resolving commercial disputes. Due to the active development and implementation of legislation along the lines of the UNCITRAL Model Law, as well as participation in the New York Convention, arbitration centres in Egypt and Tunisia attract not only regional companies, but also foreign firms interested in safe and efficient dispute resolution.
Main arbitration institutions are:
1. Cairo Regional Centre for International Commercial Arbitration (CRCICA). Established in 1979, CRCICA is Egypt's leading arbitration institute and a recognised platform for resolving commercial and investment disputes. The Centre operates under the revised UNCITRAL Rules and is supported by the Asian-African Legal Advisory Committee. The CRCICA rules provide flexibility in the choice of the language of arbitration, the number of arbitrators and the rules of procedure, which makes the centre popular with international companies.
(2) Tunisian Centre for Conciliation and Arbitration. This centre was founded in 1996 and is the main institution for arbitration in Tunisia. It is governed by the Tunisian Arbitration Code, based on the UNCITRAL Model Law. The Centre provides a platform for conciliation and arbitration, offers training for professionals and manages the hearing process. The Tunis Centre also offers library services and arbitration courtrooms.
Procedures for recourse to arbitration institutions
Egypt
Applying to CRCICA begins with the submission of an arbitration agreement or other confirmation establishing the authority of the centre. The parties may choose the number of arbitrators (the default is three arbitrators). The arbitration process is conducted on the basis of the Egyptian Arbitration Law (No. 27/1994), which is in line with the UNCITRAL Model Law, allowing the parties to resolve the dispute within the framework of international standards.
Tunisia
In Tunisia, the procedure for seeking arbitration requires a written agreement between the parties. The document must be either notarised or signed in person and contain the terms of the arbitration. In the absence of a clear indication of the number of arbitrators, the tribunal consists of one or three arbitrators, depending on the type of arbitration agreement. The Tunisian Arbitration Centre generally hears commercial disputes within six months of the appointment of the arbitrators, unless the parties have determined otherwise.
Timing and Cost of Arbitration
Egypt
Arbitration timelines range from 6 to 12 months, making it relatively quick compared to domestic courts. The total cost of arbitration services depends on the number of arbitrators, the complexity of the case and the cost of legal support. On average, the cost of arbitration in CRCICA ranges from USD 10,000 to USD 50,000, which is well within international standards.
Tunisia
In Tunisia, arbitrations take up to six months unless the parties agree otherwise. The cost of arbitration depends on the size of the dispute, but on average ranges from USD 5,000 to USD 30,000. At the same time, the parties are required to provide for a deposit to cover the costs of the hearing and the appointed arbitrators.
Number of arbitrators and their appointment
Both countries provide that the parties may agree on the number of arbitrators. In case of disagreement, three arbitrators are appointed in Egypt, while in Tunisia the default rule of three arbitrators for international arbitrations also applies. The laws of both countries support the full independence of the arbitrators, their impartiality and their high qualifications.
Enforcement of arbitral awards
Egypt
Egypt, as a party to the New York Convention, provides for the recognition and enforcement of foreign arbitral awards in its territory. According to Egyptian law, CRCICA awards have the force of a court judgement and are enforceable upon the filing of an application to the court. However, Egyptian courts may suspend the enforcement if they find the arbitration agreement to be invalid or that the process violates the right to defence of one of the parties.
Tunisia
Tunisia has also acceded to the New York Convention, which allows foreign arbitral awards to be recognised and enforced. Enforcement of awards requires a judgement of the Tunisian Court of Appeal and, in certain cases, the certification of the judge of the court of first instance. Enforcement may be suspended if the judgement is found to contain breaches of public order or serious procedural errors.
Advantages of international commercial arbitration in Egypt and Tunisia
Egypt and Tunisia provide opportunities for companies from different countries to resolve disputes in a safe and transparent manner. The implementation of UNCITRAL standards and ratification of the New York Convention make arbitration processes in these countries attractive to foreign investors. Advantages include the flexibility of the process, highly qualified arbitrators, ability to choose the arbitration language and less formalized procedures compared to state courts.
Conclusion
International commercial arbitration in Egypt and Tunisia is an effective and affordable tool for businesses. Recognised arbitration centres such as CRCICA and the Tunisian Centre for Conciliation and Arbitration provide companies with opportunities to resolve disputes with minimal time and resources. Co-operation with trusted legal partners on the ground allows companies to quickly adapt to the processes and avoid many complexities.
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