The board of the Egyptian Exchange (EGX) has approved rules of arbitration for the settlement of disputes of the capital market in the light of the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL) and its amendments.
The rules aims to settle disputes that arise between the parties to the different market as a voluntary consent of the parties.
The move is aimed at improving the investment climate in the Egyptian Stock Market. Dr. Mustafa Wageh, Vice Chairman of EGX, said that the adoption of the new arbitration rules is an important strategic step to strengthen the standing of Egyptian stock exchange as one of the most important emerging markets. Keeping EGX aligned with the latest international standards. He expressed confidence in the importance of this step to improve the investment climate in Egypt. He stressed the improved order of the investment climate in the Egyptian economy in the latest World Bank Report ?Doing Business? and that this improvement was attributed mainly to EGX?s new rules to provide more protection for minority shareholders, despite the lack of improvement in the order of Egypt in the other investment hubs. Dr. Wageh said that EGX will build the capacity of arbitrators specialized in capital market disputes through a number of approved training programs. He added that the new arbitration system does not replace the ordinary courts but provides an optional mechanism in case the consent of the parties to the conflict on the resort.