Founded in Paris in 1920, Gide is a leading international law firm with 12 offices spread throughout the world.
Gide is physically present in six regions of the world, with 11 offices, enabling it to act on cases globally.
22 April 2024
Historically, North African states have been reluctant to allow public law companies and entities to resort to arbitration in their dealings with foreign investors. This reluctance was reflected in either a formal ban on entering into arbitration agreements, often in favour of the exclusive jurisdiction of local administrative courts, or in a temporary tightening of arbitration provisions during periods of nationalisation, as was the case in Libya, or during changes to the political regime, as in Egypt.
However, a more liberal movement has gradually taken hold. In order to become major players in international trade and attract foreign investment , some stakeholders, have authorised public entities to enter into arbitration agreements under certain conditions. Said stakeholders indeed realised that the cost of a contract containing an arbitration agreement was often lower than that of one assigning jurisdiction to a local court. In Libya, since 2007, public law entities have been able to submit to international arbitration where necessary and with the approval of the relevant authorities. In Algeria, since 2008, public entities have also been able to enter into arbitration agreements in their international economic relations and in public procurement. Authorisations have also been implemented for specific sectors, notably the hydrocarbon sector in Algeria, and the oil sector in Libya where arbitration has been designated as the default dispute resolution method.
With the stated aim of becoming a regional hub, Morocco adopted a new, more liberal, arbitration code in 2022, authorising public authorities, government institutions and state-owned companies to enter into arbitration agreements, thereby abandoning the requirement for prior authorisation from their respective management bodies.
Conversely, Egypt stands out as the only country in the region to have tightened the conditions for recourse to arbitration by public entities. Two ministerial decrees adopted in 2020 and 2022 prohibit public authorities, government entities, affiliated bodies or public companies wholly or partially owned by the Egyptian state from entering into arbitration agreements, or entering into, revising or terminating any contract with a foreign investor that may include an arbitration agreement, unless they have been examined and approved by the “Supreme Authority for Arbitration and International Disputes” which consists of a ministerial panel.
