1 Legal framework

1.1 What system of jurisprudence applies in your jurisdiction? What implications does this have for litigation?

The Egyptian legal system is a civil law system. There are three main judicial orders:

  • civil (including commercial);
  • administrative; and
  • criminal.

The Court of Cassation is the supreme court of both the civil and the criminal orders; while the Higher Administrative Court is the supreme court of the administrative order. Although the rulings of the Court of Cassation are not legally binding on the lower-instance courts, in practice, the chances of the latter deviating from the principles and legal interpretations set out in the rulings of the Court of Cassation are slim to nil. However, with respect to the administrative order, and as administrative law is precedent based, the principles and legal interpretations of the Higher Administrative Court are binding on the lower-instance courts.

At the apex of the Egyptian judiciary is the Supreme Constitutional Court, which resolves matters relating to the constitutionality of the applicable laws and conflicts of jurisdictions within Egypt. The rulings of the Supreme Constitutional Court are binding on all judicial orders in Egypt.

Accordingly, in theory, the Court of Cassation is not a lawmaker, but rather a law interpreter; while the Higher Administrative Court is both a lawmaker and a law interpreter.

1.2 What rules govern litigation in your jurisdiction?

The rules that govern litigation procedurally in Egypt include:

  • the Law of Judicial Fees (90/1944), as amended;
  • the Criminal Procedures Law (150/1950), as amended;
  • the Administrative Control Law (54/1964);
  • the Civil Procedures Code (13/1968), as amended;
  • the Evidence Law (25/1968), as amended;
  • the Judicial Authorities Law (46/1972);
  • the State Council Law (47/1972), as amended;
  • the Law Pertaining to Illicit Enrichment (62/1975), as amended;
  • the Law Pertaining to the Higher Constitutional Court (48/1979), as amended;
  • the Arbitration Law (27/1994), as amended;
  • the provisions of Law 7/2000 establishing reconciliation committees within ministries, governorates and public authorities;
  • the Central Securities Depository and Restriction Act (93/2000);
  • the Intellectual Property Law (82/2002);
  • the Anti-Money Laundering Law (80/2002), as amended;
  • the Telecommunications Regulation Law (10/2003);
  • the Labour Law (12/2003), as amended;
  • the Banking Law (88/2003);
  • the Antitrust Law (3/2005), as amended;
  • the Economic Courts Law (120/2008), as amended;
  • the provisions on investment disputes reconciliation committees of the Investment Law (72/2017), as amended;
  • the Sports Law (71/2017), as amended;
  • the Media Law (180/2018); and
  • the Consumer Protection Law (181/2018).

Other laws – such as the Capital Market Law (95/1992) and the Customs Law (186/1986), as amended – regulate the procedures for internal petitions and recourse.

1.3 Do any special regimes apply to specific claims?

Yes: the economic court regime and the administrative court regime. The economic courts were established and are governed by Law 120/2008, as amended. These courts have exclusive jurisdiction to review criminal and civil cases stemming from laws of an economic nature, which are listed on an exclusive basis in Articles 4 and 6 of the law. They include the Antitrust Law, the Banking Law and the Insurance Law, among others.

The administrative courts are governed by Law 47/1972, as amended. They have exclusive jurisdiction to review specific disputes – subject to certain conditions – filed by or against:

  • the state;
  • an administrative body;
  • a state-owned company; or
  • any other public person.

Such disputes are listed on an exclusive basis in Article 10 of the law. These matters include:

  • the cancellation of administrative decrees issued by the government or governmental entities;
  • claims pertaining to citizenship; and
  • disputes relating to administrative contracts.

1.4 Which bilateral and multilateral instruments have relevance to litigation in your jurisdiction?

The most notable multilateral instruments that have relevance to litigation in Egypt are:

  • the New York Convention on Arbitration 1958, ratified by virtue of Presidential Decree 171/1959;
  • the Riyadh Arab Agreement for Judicial Cooperation of 1983, ratified by virtue of Presidential Decree 278/2014;
  • the Arab League Convention on the Enforcement of Foreign Judgments and Arbitral Awards;
  • the Investment Treaty between State Members of the Organization of Islamic Conference, ratified by virtue of Presidential Decree 272/1986;
  • the Judicial Cooperation Agreement between the United Arab Emirates and Egypt to manage and govern the process of enforcing and implementing judgments issued by either court in another country, ratified by virtue of Presidential Decree 104/2017;
  • the Treaty between the Government of the United States of America and the Government of the Arab Republic of Egypt on Mutual Legal Assistance in Criminal Matters 1998, ratified by virtue of Presidential Decree 465/2000;
  • the Judicial Cooperation Agreement between Egypt and France, ratified by virtue of Presidential Decree 332/1982; and
  • the Judicial Cooperation Agreement between Egypt and Italy to manage and govern the process of enforcing and implementing judgments issued by either court in another country, ratified by virtue of Presidential Decree 80/1978.

2 Judicial structure

2.1 What courts exist in your jurisdiction and how are they structured?

The Egyptian judiciary is primarily composed of three judicial orders:

  • the civil order;
  • the criminal order; and
  • the administrative order.

The judicial order in Egypt is based on the constitutional principle of ‘dual degree of litigation'. Thus, the civil order is comprised of first-instance courts and appeal courts. The criminal order is binary, comprised of the order of misdemeanours and the order of felonies. Both include first-instance courts and appeal courts. With respect to the order of felonies, the appeal is filed directly with the Court of Cassation, which also rules as a court of facts where a matter is referred to it for a second time. At the apex of both the civil and the criminal orders is the Court of Cassation, which oversees both orders, in principle, as a court of law.

Similarly, in the administrative order, litigation is conducted at two instances – by:

  • the administrative courts of first instance; and
  • the Higher Administrative Court, which rules as a court of both merits and law.

2.2 What specialist courts or tribunals exist in your jurisdiction?

In the business law context, the relevant specialised courts are the economic courts, which were established and are governed by the Economic Courts Law (120/2008), as amended. These courts have jurisdiction over specific exclusively listed matters outlined in Articles 4 and 6 of the law, which relate to civil and criminal cases stemming from these laws. The relevant laws are:

  • the Penal Code, regarding crimes of forging currency;
  • the Supervision and Control of Insurance Law;
  • the Law of Joint Stock Companies, Partnerships Limited by Shares and Limited Liability Companies;
  • the Capital Market Law;
  • the Investment Guarantees and Incentives Law;
  • the Financial Leasing Law;
  • the Central Securities Depository and Registration Law;
  • the Real Estate Financing Law;
  • the Protection of Intellectual Property Rights Law;
  • the Central Bank, Banking System and Currency Law;
  • the Law Relating to Companies Operating in the Field of Investment of Funds;
  • the Trade Law regarding Bankruptcy Crimes;
  • the Law on the Protection of the National Economy from the Effects of Harmful Practices in International Trade;
  • the Antitrust Law;
  • the Consumer Protection Law;
  • the Telecommunications Regulatory Law;
  • the E-signature Law;
  • the Cybercrimes Law;
  • the Small and Medium Enterprises Law;
  • the Bankruptcy Law;
  • the Anti-money Laundering Law;
  • the Economic Zones Law;
  • the Civil Aviation Law; and
  • the Maritime Trade Law.

3 Pre-litigation

3.1 What formalities apply before litigation can be commenced in your jurisdiction?

As a general rule, a creditor must formally notify the debtor to perform its obligations before initiating legal action. This requirement is set out in Article 157 of the Civil Code. Failure to meet this requirement could lead to the inadmissibility of the case. Additionally, pursuant to Article 29 of the Telecommunications Regulation Law, it is prohibited to file any action before a court regarding disputes between service providers in the telecommunications sector with regard to interconnection agreements between them, unless:

  • the dispute has been referred to the National Telecommunication Regulatory Authority (NTRA); and
  • the NTRA has issued a resolution or 60 days have elapsed since the date of submission, whichever is shorter.

The same applies in some criminal cases. For example, one of the requirements for the crime of abuse of trust is for the injured party to have notified the defendant and demand the return of asset in its custody within a reasonable period. Should the defendant refuse or fail to comply, only then is the crime deemed to have been committed. In both civil/commercial and criminal cases, such notifications are served via court bailiff.

Also, certain crimes require a formal complaint or request to be filed by a certain person designated by law. For example, tax evasion charges may only be brought based on a request of the minister of finance as per Article 124 of Law 66/1963. There are also certain crimes that require permission – to be obtained by the public prosecution – before initiating a criminal case (eg, bringing criminal charges against persons with legal immunity, such as members of the judiciary, as per Article 96 of the Law of the Judicial Authority).

Finally, as per Article 12 of the State Council Law, appeals against some administrative decisions (ie, those relating to the promotion of government employees) are not permissible, unless the decision is challenged before the administrative authority which issued that decision.

3.2 Do any pre-action protocols or similar rules apply prior to the commencement of litigation? What are the consequences of non-compliance?

There are no pre-action protocols per se. However, please see question 3.1.

3.3 What other factors should a party consider before commencing litigation in your jurisdiction?

In principle, litigation in Egypt is lengthy and cumbersome. The Judicial Technical Experts Department is still being reformed to improve its performance. The courts do not resort, in principle, to experts outside this department. The concept of a party-appointed expert is not recognised by the Egyptian courts. Any report submitted by a party-appointed expert who is paid a fee carries very limited weight in the eyes of the judiciary. That said, avoiding litigation by resorting either to ADR or to reasonable settlement – if possible – will in most cases be preferable. Also, for both judgments and arbitral awards, the high government fees levied for enforcement procedures and the practical loopholes that often result in the evasion of such procedures by judgment debtors are further material hurdles.

4 Commencing litigation

4.1 What rules on limitations periods apply in your jurisdiction?

A variety of limitation periods apply to different kinds of actions in the Egyptian legal system. The general statute of limitations for civil claims, as per Article 374 of the Civil Code, is 15 years. However, there several cases in which the limitation period is shorter, including the following:

  • seven years for commercial debts (Article 68 of the Commercial Code (17/1999));
  • five years for:
    • reclaiming excess tax accounts paid to the tax authority (Article 91 of the Income Tax Law (91/2005));
    • all recurring rights such as interest, rent and profits (Article 375(1) of the Civil Code); and
    • amounts owed to physicians, lawyers, pharmacists, engineers, experts, brokers or similar, if related to services provided thereby (Article 376 of the Civil Code);
  • three years for:
    • tax authority claims for tax debts, from the date of issuance of the final tax filing (Article 377(1) of the Civil Code);
    • insurance-related claims, from the date of occurrence of the insured peril (Article 752(1) of the Civil Code);
    • claims pertaining to tortious liability, from the date of the plaintiff's knowledge of the unlawful action (Article 172 of the Civil Code); and
    • claims for returning unduly paid amounts (Article 187 of the Civil Code); and
  • one year for:
    • employees' claims (Article 378/2 of the Civil Code); and
    • claims pertaining to untraded items supplied by traders or manufacturers (Article 378(1) of the Civil Code).

4.2 What rules on jurisdiction and how this is determined apply in your jurisdiction?

The Egyptian courts assume jurisdiction in a number of cases, mainly set out under Articles 28 to 35 of the Civil Procedure Code (CPC), as follows:

  • cases filed against Egyptian nationals, even if the Egyptian national is not domiciled or resident in Egypt, except cases relating to real estate located abroad;
  • cases filed against foreigners who are domiciled or resident in Egypt, except cases relating to real estate located abroad;
  • cases filed against foreigners who are not domiciled or resident in Egypt, if:
    • the foreigner has an elected domicile in Egypt;
    • the case relates to moneys (movables or otherwise) located in Egypt;
    • the case relates to an obligation created, executed or intended to be executed in Egypt, or pertaining to bankruptcy in relation thereto; or
    • the case relates to inheritance, where the estate was in Egypt or the deceased was an Egyptian national; and
  • multi-party litigation, where one of the defendants/respondents is domiciled or resident in Egypt.

4.3 Are class actions permitted in your jurisdiction?

There are no class actions under Egyptian law.

4.4 What are the formal requirements for commencing litigation?

Articles 63 to 70 of the CPC address the formal requirements for commencing litigation. These requirements, in summary, are as follows:

  • Depositing a writ with the relevant registration department of the court (Article 63 of the CPC): The writ should contain certain details, including:
    • the names and addresses of the parties;
    • the date on which the writ was submitted;
    • the court before which the case is to be registered (eg, civil court, commercial court, labour court);
    • the factual details of the case;
    • the legal grounds on which the case is being brought; and
    • the relief sought.
  • Furthermore, according to Article 65/3 of the CPC, a claimant must submit at least the main document evidencing its claim along with its writ (eg, if the case relates to unfulfilled contractual obligations, a copy of the contract in question should be submitted).
  • Serving the case notification on the defendant (Article 68 of the CPC): This is done by giving the Court Bailiff Department a number of notifications – in hard copy – equivalent to the number of respondents in each case. If the defendant is domiciled abroad, this is done through the Public Prosecution Office in liaison with the Ministry of Foreign Affairs, which undertakes the notification process through diplomatic channels. It is advisable to ensure that the defendant's address is correct in order to ensure that it receives the notification, as the court judgment may be nullified if the defendant can prove that it was not properly notified.

4.5 What are the procedural and substantive requirements for commencing litigation?

There are a number of requirements under the CPC for commencing litigation, as follows:

  • Most importantly, to be a litigant in a case, the party must have capacity in the case and must have an interest – even if merely potential – in its outcome (Article 3 of the CPC). If one of these requirements does not exist, the court then may decide to dismiss the case on procedural grounds;
  • No previous judgment which has res judicata status was rendered concerning the subject matter of the case (Article 116 of the CPC);
  • No other dispute resolution forum (eg, arbitration or another court) was chosen by the parties, where the claim relates to a contractual dispute; and
  • The case should be filed within the timelines provided by law (please see question 4.1).

4.6 Are interim remedies available in your jurisdiction? If so, how are they obtained?

In theory, interim measures are available in Egypt; although they are very rarely granted in practice.

There are two ways to obtain interim measures. First, if the interim measures relate to a matter under review by a court, the request for interim measures must be submitted to the court hearing the case. If the court finds the interim request for remedy acceptable, it will issue an interim judgment granting the requested remedy. In this case, the request is submitted by virtue of a writ. In the writ, the plaintiff must highlight the reasons for such request and demonstrate that the legal requirements for obtaining the requested interim measures are fulfilled. To this end, the plaintiff must demonstrate:

  • the urgency of the request; and
  • that lack of such expedited action could be detrimental to the plaintiff (Article 45 of CPC).

The plaintiff must then notify the adverse party, which will submit its defence. Thereafter, the judge will review the case on a prima facie basis and issue an interim judgment on whether to accept or reject the requested remedy. This will not affect the substantive aspect of the claim.

Alternatively, if the interim measures do not relate to a case under review by the court, the request for interim measures must be submitted either to the expedited measures judge or to the interim measures judge. The judge will issue a decision aimed at preserving a certain right for an interim period until a final substantive judgment has been rendered. The most notable example of such interim measures is the precautionary attachment stipulated in Article 316 of the CPC, whereby a plaintiff which fears that, by the time a substantive case is concluded, the movable assets of the opposing party may have been disposed of can request the court to attach such assets until a final substantive court judgment has been rendered in the dispute. However, this is conditioned on the plaintiff filing its substantive case within eight days of the date on which the request is granted. Neither the expedited court's judgment nor the decision of the interim measures judge has res judicata status.

4.7 Under what circumstances must security for costs be provided?

The concept of security for costs is not applicable in Egypt. However, there are several cases under the CPC in which the court may order a party to provide security for costs. These include:

  • where a party challenges the appointment of a certain judge (Article 153 of the CPC);
  • where a stay of execution is requested before the Court of Cassation (Article 251 of the CPC);
  • where a party files to set aside an arbitral award and seeks to stay its enforcement until the set-aside proceedings have concluded;
  • for expedited court judgments and orders of interim judges;
  • for first-instance judgments that are enforced in an expedited manner (ie, without waiting for an appeal judgment) (Article 290 of CPC);
  • where expedited performance is mandatory, in which case the losing party seeking to stay such execution may be required to submit a security amount; and
  • in institutional arbitration, where the rules of the relevant institution so allow.

5 Disclosure

5.1 What rules apply to disclosure in your jurisdiction? Do any exceptions apply to certain types of documents?

Article 20 of the Evidence Law permits a party to a dispute, in certain cases outlined therein, to request that the opposing party produce documents in its possession that may assist it in proving its case. Article 20 sets out three grounds under which the request for the production of documents may be granted:

  • The law permits a request for the provision or delivery of a document (eg, the Trade Law entitles the court to order a trader, even on its own initiative, to produce its commercial books);
  • The requested document is common between the parties – in other words, the document is in the interests of the parties or serves as proof of their obligations and their mutual rights; or
  • The document subject to the request was relied on by the opposing party at any stage of the proceedings.

Moreover, as per Article 21 of the Evidence Law, for a request for the production of documents to be considered before the court, the requesting party must provide:

  • a description of the requested document.
  • a detailed description of the subject of the requested documents;
  • the facts that are alleged to be proved by the requested document;
  • the circumstances which prove that the requested document is in the possession of the opposing party; and
  • the reason why the opposing party should produce the requested document.

5.2 What rules on third-party disclosure apply in your jurisdiction?

Article 26 of the Evidence Law establishes a broader scope for the production of documents that are in the possession of a third party, as it allows the court to permit – based on the request of one of the parties – the introduction of a third party to the dispute at any stage during the proceedings for the purpose of submitting documents in its possession, as long as the requirements stipulated in Articles 20 and 21 of the CPC are satisfied.

5.3 What rules on privilege apply in your jurisdiction? Does attorney-client privilege extend to in-house counsel?

The concept of privilege is not recognised under Egyptian law, but the concept of confidentiality is. According to Article 66 of the Evidence Law and Article 79 of the Advocacy Law (17/1983), any information that an attorney obtains either from a client or through his or her practice is deemed confidential. An attorney may only disclose, for the purposes of his or her defence, information whose disclosure the client has allowed.

5.4 How have technological advances affected the disclosure process in your jurisdiction?

Technological advances have not affected the disclosure process.

5.5 What specific considerations should be borne in mind during the disclosure process, for both plaintiff and defendant?

In general, a party is not obliged to provide all available evidence – specifically, evidence that is harmful to its position. However, there is a specific document disclosure procedure. The court, upon application or on its own initiative, can order any party or third party to produce specific documents that are considered useful to the evaluation of the claim (provided that the requirements stipulated under Article 20 of the Evidence Law are fulfilled). Failure to produce specific documents so ordered is punishable by a fine and may lead to adverse inferences, such as a presumption that the allegations made by the requesting party regarding the other party are true.

6 Evidence

6.1 What types of evidence are permissible in your jurisdiction?

The Evidence Law stipulates the following types of evidence (irrespective of their practical weight before the courts):

  • documentary evidence;
  • testimonial evidence;
  • acknowledgement and cross-examination;
  • oath;
  • inspection; and
  • expert evidence.

6.2 What rules apply to expert evidence in your jurisdiction? What specific considerations should be borne in mind when preparing and presenting expert evidence?

The Ministry of Justice has a separate Judicial Technical Experts Department. The courts do not resort, in principle, to experts outside this department. The concept of a party-appointed expert is not recognised by the Egyptian courts. Any report submitted by a party-appointed expert who is paid a fee will carry very limited weight in the eyes of the judiciary.

6.3 What other factors should be borne in mind when preparing and presenting evidence in your jurisdiction?

When preparing and presenting evidence, one of the factors that should be borne in mind is the relevance of the evidence and its weight: it must have some reasonable tendency to assist in proving or disproving certain facts. Also, if the evidence comprises a photocopy of a written document, it may be deemed inadmissible if the opposing party repudiates it – in which case the party relying on this document must submit the original. Furthermore, as per a 2020 ruling of the Court of Cassation, email correspondence is considered evidence of its contents without the need for the party relying thereupon to evidence the authenticity of its source, identifying the sender and recipient(s). In this case, for the opposing party to repudiate or challenge its contents, it must file a criminal case for falsification of evidence.

7 Court proceedings

7.1 What case management powers do the courts have in your jurisdiction?

As Egypt is a civil law country, the Egyptian courts have a rather inquisitorial role in managing the case. This means that the court plays a proactive role. The court has the right and the duty to investigate the case. Among other things, it may – where it deems fit – request:

  • the submission of certain documents;
  • the testimony of a certain witness to be heard; or
  • the interrogation of a party.

The court also has the power:

  • to manage the hearing sessions as it deems fit; and
  • to direct the case in a manner that ensures a fair trial while safeguarding the observance of due process as well as the observance of the interests of the parties.

7.2 Are court proceedings in your jurisdiction public or private? If the former, are any options available to the parties to keep the proceedings or related information confidential?

Pleadings are public unless the court decides – ex officio or at the request of one of the parties – to conduct it in private in order to:

  • maintain public order; or
  • observe the ethics or family privacy (Article 101 of the CPC).

Despite that, only the parties or someone who has a power of attorney from one of the parties has the right to access court files – save for a photocopy of the final court judgment, which may be obtained by any person without the need for a specific capacity (Article 180 of the CPC).

7.3 How is the applicable law determined? What happens in the event of a conflict of laws?

The applicable law is determined either:

  • by the parties' agreement in a specific contract; or
  • according to the provisions of the law absent such agreement.

In case of a conflict of laws, the Civil Code stipulates that the following rules will apply:

  • The status and the legal capacity of persons are governed by the law of the country of which they are nationals (Article 11/1 of the Civil Code).
  • The legal status of foreign legal persons – such as companies, associations, foundations, or organisations – is subject to the law of the jurisdictions in which their main place of business is located (Article 11/2 of the Civil Code).
  • Contractual obligations are governed:
    • by the parties' agreement;
    • in the absence of such agreement, by the law of the parties' domicile, if such domicile is common between the contracting parties; or
    • if there is no common domicile, by the law of the jurisdiction in which the contract was concluded (Article 19 of the Civil Code).
  • Even where an applicable law is stipulated in the agreement, if the circumstances indicate that the application of another law would be more suitable, the court may decide to apply such other law. An example of this can be found in a precedent of the Court of Cassation in a case where the contract provided for the application of a specific law, but the parties were both domiciled in a common jurisdiction (Egypt) and the contract was executed in that jurisdiction. The court held that in such circumstances, Egyptian law was applicable, regardless of the terms of the contract.
  • Contracts relating to immovable property are governed by the law of the place in which the immovable property is situated.

7.4 What rules apply to the joinder of third parties?

The joinder of third parties is governed by Articles 117 to 119 of the CPC. There are two types of joinder:

  • Joinder where the third party (the joining party) requests to join the case: This is classified into two types:
    • joinder where the party requesting to join seeks separate and independent relief for itself apart from that of the parties, but which relates to the same subject of the claim; and
    • joinder where the requesting party seeks to be awarded the same relief that may be awarded to one of the parties.
  • Joinder requested by one of the parties: This is done through the regular procedures for filing the case – that is, the litigating party notifies the third party of the hearing date through the court bailiff and requests its attendance. The same requirements as apply to the litigating parties (as outlined in question 4.5) will apply to the third party whose joinder is requested.

In addition to the foregoing, the court may, on its own initiative and discretion, decide to include anyone whose inclusion it would consider to be beneficial for achieving justice in the case in question (Article 118 of the CPC).

7.5 How do the court proceedings unfold in your jurisdiction? What specific considerations should be borne in mind at each stage of the process, for both plaintiff and defendant?

The court proceedings commence with the first hearing set by the court, during which the plaintiff's counsel must submit to the court:

  • the original power of attorney empowering him or her to represent the client (for review and recording of details); and
  • evidence that the defendant has been served with the case notification.

If the defendant attends the hearing, the court will usually grant it an adjournment to prepare and submit its defence, and will set another hearing date. If not, the court will adjourn the case for the plaintiff to re-notify the defendant.

The parties may request further adjournments to submit their respective defence or reply to documents and claims made by the adverse party. The court has full discretion as to whether to grant such adjournments and to decide on the duration thereof. If the court decides – based on its own discretion or the request of either party – that an expert should be appointed, it will issue a preliminary judgment ordering the appointment of such expert and outlining its mandate. While the expert is studying the case, discussing with the parties and preparing his or her report, the court hearings are automatically adjourned, without the need for the parties' attendance, until the expert's report has been finalised and deposited with the court. Once the expert has deposited his or her report, the court sessions resume and each party is granted ample time to comment on the expert's report. Thereafter, the court closes the case for judgment. The court may also order the interrogation of one of the parties before it issues its judgment if it requires certain clarification with regard to that party's defence or evidence.

7.6 What is the typical timeframe for the court proceedings?

The timeframe depends on several elements, including:

  • the court's agenda;
  • the type of case (eg, civil, commercial, labour);
  • the complexity of the case; and
  • whether experts are appointed.

It also depends on whether the defendant is located in Egypt or abroad, as in the latter case the defendant will need to be notified through diplomatic channels, which can add significantly to the timeframe of the case.

In general, if there are no unusual hurdles, the average timeframe for civil/commercial cases is three to four years, where the first-instance stage usually takes between 18 and 24 months, and the appeal stage takes between 12 and 18 months.

8 Judgment and remedies

8.1 What types of judgments, orders and other remedies are available in your jurisdiction?

Judgments: There are several types of judgments under Egyptian law:

  • Final judgments: These are judgments whereby the court decides finally on the relief sought by one or more parties. Such judgments are enforceable and gains res judicata status.
  • Preliminary judgments: These are judgments issued by the court during the course of the trial and mainly relate to a procedure which the court deems necessary in order to be able to rule on the case. Common examples include preliminary judgments to interrogate one of the parties or to appoint an expert.
  • Interim judgments: These are judgments issued by either:
    • the court of expedited matters, if the matter does not relate to a dispute under review by a specific court; or
    • the court reviewing the case where the request is for interim measures to be taken to protect one of the parties' rights.
  • These judgments do not have res judicata status.
  • Judgments pertaining to the management of the case, which might include:
    • a judgment to stay/suspend the proceedings until a decision has been issued in another case;
    • a judgment to punitively stay the proceedings; or
    • a judgment on the cessation of the dispute due to the demise of either party.

Orders: Orders are generally:

  • issued by the head of the first-instance court – or any other judge that he or she may delegate – in his or her capacity as the ad hoc judge; and
  • issued in absentia.

These orders may be challenged by virtue of a grievance either to the judge who issued it or to the court. Common examples of orders are:

  • orders to enforce arbitral awards; and
  • payment orders issued according to Article 201 of the CPC.

9 Appeals

9.1 On what grounds may a judgment be appealed in your jurisdiction?

Appeals of judgments rendered by the court of first instance can be made to the Court of Appeal on procedural or substantive grounds. Common grounds include:

  • a lack of or inadequacy in reasoning;
  • a lack of understanding of the facts;
  • failure to address a key argument of a party; and
  • the issue of a judgment which is contrary to what is evidenced by the case documents.

The Court of Appeal will review the case on its merits and then issue a judgment either:

  • upholding the first-instance decision;
  • amending it; or
  • cancelling it entirely and issuing a new ruling.

The Court of Appeal's judgment may be appealed before the Court of Cassation if:

  • there was:
    • an erroneous application of the law;
    • an illegality;
    • an invalidity in the judgment; or
    • an invalidity in the trial procedures that affected the judgment; and
  • either:
    • the value of the case exceeds EGP 100,000; or
    • the claim value was undetermined (Article 248 of the CPC).

9.2 What is the appeals process? Is the judgment stayed while the appeal is pending?

Appeals of first-instance judgments can be made to the Court of Appeal within 40 days. In case of expedited proceedings, appeals must be made within 15 days (Article 227 of the CPC). In principle (albeit with certain exceptions), first-instance judgments are stayed while an appeal is pending before the Court of Appeal.

Appeals of judgments before the Court of Cassation must be made within 60 days of the Court of Appeal's judgment (Article 252 of the CPC). In principle, second-instance judgments are enforceable irrespective of whether an appeal has been submitted to the Court of Cassation; the appeal does not stay enforcement.

9.3 What specific considerations should be borne in mind during the appeals process, for both plaintiff and defendant?

Plaintiffs: It is important to take into consideration the reason why the first-instance court dismissed the case and, in light thereof, consider whether it would be better to appeal the judgment or file another case ab initio. For example, if the first-instance court decided that the defendant lacked capacity, the plaintiff may consider filing a new case against other parties whose capacity could be of greater relevance, as determined by documents submitted by the defendant in the dismissed case, instead of appealing the case against the defendant with a slim chance of succeeding.

Defendants: Appeals filed before the Cassation Court do not stay enforcement of the judgment. Also, in cassation appeals pertaining to civil and commercial matters, it takes a long time for a court date to be set: this generally takes between three and five years from the date of depositing the appeal memo.

10 Enforcement

10.1 How are domestic judgments enforced in your jurisdiction?

  • A writ of execution (exequatur) must first be issued. This can be an order or a judgment which includes an executionary stamp granting the document executionary power. Before proceeding with any execution/enforcement measures, the plaintiff must first notify the defendant with a copy of the executionary document and grant it a period of at least eight days to voluntarily execute the judgment or order (Articles 280 and 281 of the CPC). Also, after receipt of the exequatur, an application for security clearance is in practice required, to ensure that enforcement will have no security repercussions on a specific date.
  • If the defendant fails to pay voluntarily, a bailiff from the court's Execution Department must visit the defendant's domicile and prepare a report (in the form of meeting minutes), setting out:
    • the details of the executionary document;
    • the location where the execution is taking place and any anticipated obstacles;
    • details of items that are found at the location and that are to be attached for execution;
    • a date and time for sale of the attached items through public auction; and
    • the chosen domicile for the plaintiff in the town where the execution takes place (Article 353 of the CPC).
  • On the date designated for the auction – which must be within three months of the execution report date – and once the execution judge has confirmed that all objections pertaining to the execution have been addressed, the attached items will be sold and the proceeds will be allocated to the creditors. If the attached items are stocks or bonds, the sale is effected through a bank or securities brokerage. The execution judge will issue an order laying out the procedures for the sale on a case-by-case basis. (Article 400 of the CPC).

Furthermore, if the amount to be enforced either results from a crime committed against the government or was awarded as damages in a civil case, and if it is proven that the debtor has the financial ability to pay the amount awarded, the plaintiff may request the imprisonment of the debtor as a mean of pressure . Such imprisonment shall be for a period not exceeding three months (Articles 511 and 519 of the Criminal Procedures Law).

10.2 How are foreign judgments enforced in your jurisdiction?

Save for arbitration awards which are enforced pursuant to the Arbitration Law (27/1994) and the New York Convention of 1958 on the Enforcement of Arbitral Awards, a foreign court judgment can only be enforced in Egypt, according to Articles 296 to 299 of the CPC, in the case of reciprocity between Egypt and the country in which the foreign court judgment was issued. In addition to the reciprocity requirement, foreign court judgments can only be enforced in Egypt once an order of enforcement and execution (exequatur) has been granted. The competent Egyptian court to submit the request for exequatur is the court of first instance of the region in which the judgment is to be enforced. Before issuing the exequatur, the court must ensure that it meets the following requirements:

  • The dispute does not fall within the exclusive jurisdiction of the Egyptian courts;
  • The foreign court issuing the judgment has jurisdiction in accordance with its own rules;
  • The foreign judgment has res judicata status; and
  • The foreign judgment does not contradict a previous judgment issued by Egyptian courts and enforcement of the foreign judgment would not contravene Egyptian public policy or morals.

10.3 What specific considerations should be borne in mind during the enforcement process, for both plaintiff and defendant?

Where the plaintiff is a legal person (e.g. company), it must ensure that the title of the party against which the enforcement is being initiated is identical to that included in its commercial register. In addition, execution will not be valid unless the debtor has been notified through a writ of execution prior to execution. Finally, the costs of enforcement can be quite significant, as they are calculated as a percentage of the awarded amount, with:

  • 7.5% of the awarded amount payable on the commencement of execution; and
  • an additional 2.5% payable on every attempt at enforcement undertaken (see question 10.1), irrespective of whether the execution attempt is successful and assets are found.

11 Costs, fees and funding

11.1 What costs and fees are incurred when litigating in your jurisdiction?

Proportionate fees: These are 5% of the claimed amount if the claimed amount is in excess of EGP 4,000 (Article 1 of the Judiciary Fees Law (90/1944), as amended). In case of appeals, the same percentage applies and is calculated based on the value of the appeal claim (Article 3 of the Judiciary Fees Law). However, proportionate fees may not exceed:

  • EGP 1,000 for claims exceeding EGP 40,000;
  • EGP 2,000 for claims between EGP 40,000 and EGP 100,000;
  • EGP 5,000 for claims between EGP 100,000 and EGP 1 million; and
  • EGP 10,000 for claims exceeding EGP 1 million (Article 9 of the Judicial Fees Law).

Fixed fees: These are:

  • EGP 15 for cases filed before the first-instance court;
  • EGP 50 for cases relating to bankruptcy (which fall under the jurisdiction of the economic courts);
  • EGP 30 for appeals;
  • EGP 75 for cassation appeals; and
  • EGP 40 for a request to stay execution (Articles 1, 3 and 4 of the Judiciary Fees Law).

In case of multiple claims in one case, if those claims stem from different sources/instruments, the above fees will apply to each claim individually.

If the case is settled amicably prior to the issuance of a final judgment, only 50% of the fees – whether fixed or proportionate – will be payable. However, if the case is abandoned by the plaintiff or is settled at the first hearing, only 25% of the paid fees will apply.

Other costs of litigation include the following

  • Taxes: Value added tax and advocacy tax are payable.
  • Bar association fees: These are payable when filing the case and are minimal amounts of around:
    • EGP 75 at first instance; and
    • EGP 175 on appeal and cassation.
  • This amount is transferred from the court to the bar association.
  • Services fund: Again, this is a minimal amount (around EGP 5 to EGP 10).

These amounts are considered the official costs of the case. Additionally, lawyers' fees are payable, which will vary from one firm to another.

Other costs that may be incurred during litigation include expert fees. The court may, at its discretion or at the request of either party, decide to appoint an expert. In the ordinary courts (ie, not the specialised economic courts), expert fees are generally minimal – between EGP 50 and 500. However, in cases reviewed before the economic courts, expert fees are much higher – they can reach up to EGP 50,000. This is in addition to the execution costs highlighted in question 10.3.

11.2 Are contingency fees and similar arrangements permitted in your jurisdiction?

Yes, contingency fees are permitted in Egypt. However, according to Article 82(2) of the Advocacy Law, lawyers' fees cannot be calculated exclusively as a percentage of the disputed matter (whether monetary or otherwise). Nevertheless, in practice, many lawyers in Egypt do calculate their fees exclusively as a percentage of:

  • the amount collected, when representing the claimant; or
  • the amount salvaged, when representing the respondent.

11.3 Is third-party funding permitted in your jurisdiction?

Third-party funding is not regulated under Egyptian law. However, there are no laws or regulations that prohibit it.

11.4 What other strategies should parties consider to mitigate the costs of litigation?

Parties:

  • should carefully consider the value to be attributed to the claim; and
  • should not unnecessarily and unreasonably inflate their claims.

Also, as a way to avoid paying hefty execution fees on every attempt at execution – which may turn out to be unsuccessful (see question 10.3) – the plaintiff may seek to apply for a precautionary attachment for a fraction of the awarded amount (instead of an execution attachment for the full awarded amount). If it is confirmed that there are assets or moneys that could be attached, the plaintiff can then proceed to file an executionary attachment for the full amount.

Furthermore, where a case settles, the parties can opt for the plaintiff to abandon the case – in which case only 25% of the court fees that have been previously paid will apply – instead of recording the settlement to close the case, in which case 50% of the court fees will apply.

12 Trends and predictions

12.1 How would you describe the current litigation landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

The prime minister's Cabinet has established the Egyptian Regulatory Reform and Development Activity Initiative (ERADA), which aims to implement necessary legislative reforms to enhance the business landscape in Egypt. ERADA, together with the Ministry of Justice, is working on an e-litigation project which would enable litigation to be conducted swiftly through electronic means.

To date, no legislative changes to the Civil Procedure Code (CPC) have been officially proposed. However, the Higher Council for Investment – headed by the president – has issued directions to amend the CPC in the following respects:

  • increasing the financial threshold for the economic and partial courts;
  • adding additional commercial and criminal matters to fall under the competence of the Economic courts.; and
  • increasing the threshold for cassation appeal.

13 Tips and traps

13.1 What would be your recommendations to parties facing litigation in your jurisdiction and what potential pitfalls would you highlight?

In general, litigation in Egypt remains a lengthy and cumbersome process that is best avoided, if possible. In the case of commercial relationships and transactions, we would recommend that a proper ADR clause be inserted in the parties' agreement. Also, we would always recommend that the opportunity to reach a reasonable settlement be explored, if at all possible. We view litigation as either:

  • a last resort after the failure of all means to resolve a dispute; and/or
  • in certain scenarios, a way to create leverage to achieve better settlement terms in negotiations.

Co-Authored by Mai Ibrahim

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.