Promoting Industrial Growth and Encouraging Foreign Direct Investment in Egypt
Ministry of Justice
Industry-Specific Reforms > General Reforms
- Reduce delays in court proceedings to enhance the timely delivery of justice; and build the capacity of judges in economic courts, with a focus on increasing their knowledge of economics principles and issues.
Industry-Specific Reforms > General Reforms
- On August 7, 2018, the President ratified the amendments to the Economic Courts Law (No. 120 of 2008), which were approved by the House of Representatives. The new Law No. 146 of 2019 will help accelerate litigation involving lawsuits falling under the jurisdiction of the laws governing trade, investment, and financial transactions.
Industry-Specific Reforms > State Administrative Apparatus
- Contradictory laws and conflicting administrative decisions.
Responsible Entities
Date 6/30/2020
Industry-Specific Reforms > State Administrative Apparatus
- Review and revamp all relevant laws, decrees, and regulations in order to reduce administrative burden and accelerate work processes. In this regard, it is important to promptly constitute the Supreme Council for Administrative Development, which should have clear powers to address the challenges related to the legal and regulatory framework, and eliminate any existing inconsistencies, contradictions, and overlaps; this effort should be carried out in collaboration with the Central Agency for Organization, Administration and the Administrative Control Authority.
Responsible Entities
Date 6/30/2020
Industry-Specific Reforms > State Administrative Apparatus
- Hesitation in decision making on the part of officials, for fear of assuming responsibility; this attitude further hampers processes and slows them down, and negatively affects the investment climate in Egypt.
Responsible Entities
Date 6/30/2020
Industry-Specific Reforms > State Administrative Apparatus
- Amend Article 8 bis of the Criminal Procedure Code to read as follows: "For crimes stated under Article 116 bis (a) of the Penal Code, no criminal case may be filed except through the Public Prosecutor or the Attorney General. If the employee is one of the employees of the entities specified in paragraphs (a and b) of Article 119 of the Penal Code, the criminal case may not be filed except with the approval of the competent minister, who the employee falls under his authority, or the approval of the prime minister if the perpetrator of the crime was the minister or his deputy". This amendment will enable the state body where the employee works to exercise their inherent right to approve the initiation of criminal proceedings in crimes of unintentional harm committed by employees falling under their authority.
- Add a new article in Chapter V of Book Two of the Penal Code, to read as follows: "A sentence of imprisonment for not less than a month and not exceeding a year, or a fine of not less than LE 1,000 and not exceeding LE 50,000 shall be imposed on every employee who willfully and without justification refrains from performing work duties which constitute part of his job after it has been proved that they fall within his job competence and within the limits of his discretionary authority, and that the duties are in full compliance with the law and his action resulted in obstructing the execution of any decree, issuing a license, concluding contracts or agreements, or any other measures that impede any investments; the punishment will be imposed if refraining from carrying out the duties is intended to harm the interest of a natural, a legal person, or public interest.”
- Amending the text of Article 115 of the Penal Code, to read as follows: “Every public employee who obtained or tried to obtain for himself, or obtained or tried to obtain for others, without a right, a profit or gain connected with the carrying out any duty of his office, if this was based on a previous agreement between them, shall be punished by imprisonment at hard labor; and shall be punished with imprisonment or a fine in other cases.” Amending the article by adding “…. he shall be punished with imprisonment or a fine in other cases” closes a loophole, which allowed public employees to escape punishment if it was not possible to prove that there was a pre-arranged agreement between the parties.
Responsible Entities
Date 6/30/2020
Responsible Entities
Date 6/30/2020
Responsible Entities
Date 4/10/2024
Responsible Entities
Date 4/10/2024
Responsible Entities
Date 4/10/2024
Ministry of Justice
Challenge(s)
- Reduce delays in court proceedings to enhance the timely delivery of justice; and build the capacity of judges in economic courts, with a focus on increasing their knowledge of economics principles and issues.
Recommendation(s)
Status/Notes
- On August 7, 2018, the President ratified the amendments to the Economic Courts Law (No. 120 of 2008), which were approved by the House of Representatives. The new Law No. 146 of 2019 will help accelerate litigation involving lawsuits falling under the jurisdiction of the laws governing trade, investment, and financial transactions.
Challenge(s)
- Contradictory laws and conflicting administrative decisions.
Recommendation(s)
- Review and revamp all relevant laws, decrees, and regulations in order to reduce administrative burden and accelerate work processes. In this regard, it is important to promptly constitute the Supreme Council for Administrative Development, which should have clear powers to address the challenges related to the legal and regulatory framework, and eliminate any existing inconsistencies, contradictions, and overlaps; this effort should be carried out in collaboration with the Central Agency for Organization, Administration and the Administrative Control Authority.
Status/Notes
Challenge(s)
- Hesitation in decision making on the part of officials, for fear of assuming responsibility; this attitude further hampers processes and slows them down, and negatively affects the investment climate in Egypt.
Recommendation(s)
- Amend Article 8 bis of the Criminal Procedure Code to read as follows: "For crimes stated under Article 116 bis (a) of the Penal Code, no criminal case may be filed except through the Public Prosecutor or the Attorney General. If the employee is one of the employees of the entities specified in paragraphs (a and b) of Article 119 of the Penal Code, the criminal case may not be filed except with the approval of the competent minister, who the employee falls under his authority, or the approval of the prime minister if the perpetrator of the crime was the minister or his deputy". This amendment will enable the state body where the employee works to exercise their inherent right to approve the initiation of criminal proceedings in crimes of unintentional harm committed by employees falling under their authority.
- Add a new article in Chapter V of Book Two of the Penal Code, to read as follows: "A sentence of imprisonment for not less than a month and not exceeding a year, or a fine of not less than LE 1,000 and not exceeding LE 50,000 shall be imposed on every employee who willfully and without justification refrains from performing work duties which constitute part of his job after it has been proved that they fall within his job competence and within the limits of his discretionary authority, and that the duties are in full compliance with the law and his action resulted in obstructing the execution of any decree, issuing a license, concluding contracts or agreements, or any other measures that impede any investments; the punishment will be imposed if refraining from carrying out the duties is intended to harm the interest of a natural, a legal person, or public interest.”
- Amending the text of Article 115 of the Penal Code, to read as follows: “Every public employee who obtained or tried to obtain for himself, or obtained or tried to obtain for others, without a right, a profit or gain connected with the carrying out any duty of his office, if this was based on a previous agreement between them, shall be punished by imprisonment at hard labor; and shall be punished with imprisonment or a fine in other cases.” Amending the article by adding “…. he shall be punished with imprisonment or a fine in other cases” closes a loophole, which allowed public employees to escape punishment if it was not possible to prove that there was a pre-arranged agreement between the parties.
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