FRA chief highlights strong potential to advance Egypt’s arbitration framework

“Islam Azzam, Chairperson of Financial Regulatory Authority (FRA), said the country holds significant potential to further develop its arbitration framework, particularly as the authority expands the use of financial technology (FinTech) across non-banking financial activities in line with Law No. 5 of 2022. He emphasised the need to intensify awareness and education efforts, draw on international best practices, and strengthen coordination among legislative and regulatory bodies, financial institutions, and the legal community. Such steps, he noted, are essential to entrench arbitration as a primary mechanism for resolving investment disputes. Azzam made these remarks during a speech at the Egyptian Arbitration Day conference, organised by the Egyptian Centre for Arbitration and Settlement of Non-Banking Financial Disputes (ECAS), chaired by Marian Kaldas. The event brought together experts, specialists, and representatives from regulatory and judicial bodies as part of broader efforts to reinforce arbitration as an effective tool to support Egypt’s investment climate. He highlighted arbitration’s growing importance in enhancing the attractiveness of the investment environment, noting that advancing the field in Egypt would help resolve disputes more efficiently while reducing litigation burdens and associated costs. Azzam added that global economic developments have heightened the relevance of consensual dispute resolution mechanisms, including arbitration and mediation. International trends, he said, show a clear shift towards arbitration, with studies indicating that around 90% of companies prefer it as a primary method of dispute resolution, while approximately 60% favour combining it with other alternative mechanisms—reflecting rising confidence in such approaches. He further noted that arbitration plays a pivotal role in supporting investment environments, with some studies estimating its positive impact at more than 22% compared to traditional litigation systems in developing countries. This is attributed to several advantages, including faster dispute resolution, reduced disruption to investment activities, greater procedural flexibility, and significantly lower long-term costs—estimated by some researchers at up to 80%. These factors collectively enhance market attractiveness, support foreign investment inflows, and contribute to broader economic development. Azzam also pointed to a recent decision by the Prime Minister amending the statutes of ECAS, introducing rules for electronic arbitration that enable proceedings to be conducted remotely in a secure and confidential manner. The amendments also include an expedited arbitration system designed to accelerate dispute resolution for cases not exceeding EGP 25m. He affirmed that the FRA will continue to support the development of the regulatory and legislative framework governing non-banking financial activities, including dispute resolution mechanisms, while working to strengthen trust among market participants. This, he said, will help ensure the stability of financial transactions, expand financial inclusion, and enhance the overall attractiveness of the Egyptian economy. Egyptian Arbitration Day was organised by the Egyptian Centre for Optional Arbitration and Settlement of Non-Banking Financial Disputes, established under Presidential Decree No. 335 of 2019 in implementation of Article 10 of Law No. 10 of 2009 regulating non-banking financial markets and instruments. The event forms part of ongoing efforts to exchange expertise and highlight international best practices aimed at protecting market participants and expediting amicable dispute resolution, with the broader goal of positioning arbitration as a key pillar of Egypt’s investment landscape. The post FRA chief highlights strong potential to advance Egypt’s arbitration framework first appeared on Dailynewsegypt .

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