Because Egypt’s litigation system has historically been the only way to settle disputes, whether for domestic or international commercial disputes, the burden of cases in local courts has become overburdened. As a result, litigation has become a time-consuming mechanism that can fail to keep up with the requirements of modern international business transactions. Since time is a crucial factor in resolving disputes, many business owners prefer to turn to alternative dispute resolution methods in Egypt, which saves money and speeds settlement and results in creative solutions, longer-lasting outcomes, greater satisfaction, and improved relationships.

Definition & Benefits of Alternative dispute resolution (ADR) methods

Alternative dispute resolution (ADR) refers to the different methods people can resolve disputes without a trial. ADR can be a faster, cheaper, and more collaborative way to resolve legal issues compared to traditional litigation.

There are many benefits to alternative dispute resolution (ADR), including:

  1. Complaints are processed more quickly and resolved earlier.
  2. The process leads to more creative solutions.
  3. Savings in time of attorneys, staff, and parties who are federal employees.
  4. Quicker resolution than what a hearing would provide, and less time spent by the parties under the shadow of outstanding litigation.
  5. Creative resolutions acceptable to the parties, but which a third-party reviewer could not impose.
  6. A durable and voluntary agreement.

Nevertheless, even in instances that do not resolve, the ADR procedure has other significant benefits, such as:

  1. Laying the groundwork for a subsequent settlement.
  2. Increasing clarification of the issues for third-party review.

Forms of alternative dispute resolution (ADR) methods

There are many common alternative dispute resolution methods in Egypt. These processes are generally confidential, less formal, and less stressful than traditional court proceedings.

Here are the most important of these methods as follows:

  1. Arbitration

Arbitration is a process by which disputing parties refer their conflict to one or more private persons “arbitrators” for the latter to render a binding decision. Arbitration is a method used to settle various types of disputes between entities. For example, arbitration mitigates conflict between private entities regarding their commercial relationship, commonly known as “commercial arbitration.” Additionally, arbitration aids in settling disagreements between States “inter-State arbitration”, as well as assisting in minimizing conflict between a private investor and a State “investor-State arbitration.”

Coincidentally, arbitration is currently the only ADR method provided for and regulated by Egyptian law. (see Law No. 27/1994 Promulgating the Law Concerning Arbitration in Civil and Commercial Matters).

  1. Mediation

Mediation is when the parties appoint a neutral person, “the Mediator,” to guide negotiations to settle the dispute. However, the decision rendered during the mediation process is non-binding and cannot be enforced upon the parties, the neutral person called “mediator” helps the parties try to reach a mutually acceptable resolution of the dispute.  The mediator does not decide the case, but helps the parties communicate so they can try to settle the dispute themselves.

  1. Negotiation

Negotiation is primarily considered a preliminary step in dispute settlement; it involves the parties communicating directly to settle their pending dispute. The fundamental benefit of using this method of dispute resolution is that it gives the parties the ability to decide the process and the outcome themselves. Comparatively speaking, negotiations are significantly less formal and offer a great deal more flexibility.

If you are facing problems, whether commercial or legal, or having difficulty dealing with another commercial establishment, contact the “Consortio Law Firm” team to obtain our professional services for alternative dispute resolution methods in Egypt.

Just call us now through the phone number 002 01028806061 or email us via WhatsApp or email Info@consortiolawfirm.com.