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Sunday, 20 December 2020

Send in the lawyers

A new arbitration center to settle non-banking finance related disputes will be up and running soon. The Financial Regulatory Authority (FRA) is getting ready to appoint a chief executive with expertise in arbitration and dispute resolution, a board of trustees headed by the FRA’s chairman to launch the center, and a seven-member expert advisory board, FRA boss Mohamed Omran said in a statement. Omran’s statement came after a cabinet decree (pdf) greenlighting the new center’s role and statute. The FRA-run center will specialize in handling arbitration disputes involving non-banking financial service providers, especially those arising between companies and their investors.

Background: The non-banking arbitration center was formed with a presidential decree last year. The center was envisioned under the 2009 law (pdf) that set up the FRA, which was originally known as the Egyptian Financial Regulatory Authority. The law also established the general regulatory framework for the non-banking industry. A specialized arbitration center for the industry would come as welcome news for foreign investors, who have long faced obstacles presented by Egypt’s slow judicial system and weak contract enforcement.

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