The total number of arbitration cases filed before CRCICA until 31 December 2012 reached 870 cases. In 2012, 78 new arbitration cases were filed, scoring as such 19% annual increase compared to the 66 cases filed in 2011. 2012 witnessed therefore a new record for the number of cases registered under the auspices of CRCICA in a single year (78 cases). The previous record, reached in 2007 (67 cases), has already been broken.
In the fourth quarter of 2012, 11 new arbitration cases were filed. Such cases involved disputes relating to construction, real estate, petroleum services, sports, media and entertainment, agency agreements and investment agreements. Real estate disputes related to the touristic development of a land in Sahl Hasish, Hurghada, Egypt as well as the agricultural development of a land in Menyia Governorate, Egypt. Sports-related disputes related to the broadcasting of sportive events and shows. The investment agreement related to the financing of a factory in Obour City, Egypt, manufacturing oils, soap and detergents. The media and entertainment case related to the marketing of a television game show. The petroleum services dispute related to a contract for the processing of crude oil.
The following pie shows a breakdown of the types of disputed contracts during the fourth quarter of 2012:
According to the statistics of 2012, construction contracts maintained its position as the most important type of disputed contracts with 11 cases, followed by real estate disputes (9 cases), media and entertainment (8 cases), petroleum services and sports-related disputes (6 cases), services (5 cases), information technology (4 cases), agency agreements, industrial, commercial and urban development, investment agreements and lease agreements (3 cases each), escrow agencies, gas supply and sale and purchase of shares (2 cases each), bilateral investment treaty, charter-party, distributorship agreements, franchise, gold mining concession, hotel management, international sales of goods, joint venture agreements, power supply, settlement agreements and subcontracting agreements (1 case each).
The following pie shows a breakdown of the types of disputed contracts in 2012:
The rich variety of the types of disputed contracts referred to CRCICA in 2012 clearly illustrates the importance of arbitration as a means of dispute settlement and confirms the credibility of institutional arbitration under CRCICA’s auspices.
In the fourth quarter of 2012, arbitration proceedings involved parties from different countries including Egypt, Switzerland, Iraq, British Version Islands and Cayman Islands. CRCICA is pleased to see that in the fourth quarter of 2012, it’s Arbitration Rules have again been selected by Swiss and Iraqi parties.
The following pie shows a breakdown of the nationalities of non-Egyptian parties during the fourth quarter of 2012:
According to the statistics of 2012, parties from Saudi Arabia rank on top of Arab parties, followed by Libyan, Iraqi, Kuwaiti, Moroccan, Lebanese and Qatari parties, while British and Swiss parties are the most frequent non-Arab parties, followed by parties from Canada, China, Italy, the Netherlands, Russia, and the USA, in addition to Bermuda, British Version Islands and Cayman Islands.
The following pie shows a breakdown of the nationalities of non-Egyptian parties in 2012:
The fourth quarter of 2012 witnessed the appointment of a chairman from the UK and Lebanon in addition to another co-arbitrator from Lebanon. According to the statistics of 2012, Lebanese arbitrators rank on top of Arab arbitrators, followed by Jordanian, Libyan, Emirati and Tunisian arbitrators, while British arbitrators are the most frequently appointed non-Arab arbitrators, followed by German and Swedish Arbitrators.
The following pie shows a breakdown of the nationalities of non-Egyptian arbitrators in 2012:
Mediation and ADR: Encouraging Results
The year 2012 witnessed encouraging results that open the door to a brighter future for Mediation in particular and ADR in general.
Three mediation and ADR cases were actually registered under the auspices of the Centre in 2012. The first case started as an arbitration and related to a contract for the sale and purchase of shares concluded between an Arab investment group, including shareholders from Saudi Arabia and Jordan, and an Egyptian joint stock company as well as two investors from Qatar, who all agreed to refer their dispute to mediation after the filing of an arbitration. While the arbitration case included claims amounting to US$ 2,000,000, the mediation process resulted in a settlement agreement concluded between the parties for a sum amounting to only US$ 250,000. The second ADR case was a conciliation one that took place between a public entity and a real estate investment company, including investors from Egypt and Kuwait, concerning an industrial, commercial and urban development project in Egypt. According to the disputed contract, a panel of three conciliators was constituted including a chairperson appointed by the Centre in its capacity as the designated appointing authority. The parties reached an amicable settlement based on a recommendation made by the conciliators and approved by the parties. Another conciliation case involving two well known construction companies is currently pending before the Centre. A sole engineer conciliator was appointed by the parties to help them settle the dispute.
The above cases were filed according to the former version of CRCICA’s mediation and ADR Rules. CRCICA expects that with the entry into force of its new and modern Mediation Rules, as from 1 January 2013, the number of mediation and ADR cases will augment.