Egypt’s Financial Regulatory Authority (FRA) said on Sunday it plans to launch a new arbitration centre to settle non-banking finance related disputes soon.
The 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 centre, and a seven-member expert advisory board, its chairman Mohamed Omran said in a statement.
Omran’s remarks came after a Cabinet decree greenlighting the new centre’s role and statute.
The FRA-run centre will specialise in handling arbitration disputes involving non-banking financial service providers, especially those arising between companies and their investors.
Background: The non-banking arbitration centre was formed following a presidential decree last year. The centre was envisioned under the 2009 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 specialised arbitration centre 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.
