CRCICA and new CRCICA Arbitration Rules

In summary

Since its establishment in 1979, the CRCICA has grown into a modern and well-regarded institution that has been recognised for its decision-making, neutrality and commitment to improving diversity. After four years of work, the CRCICA released its new Arbitration Rules, which came into force in January 2024. This article outlines the structure of the CRCICA and the amendments made to its Arbitration Rules to reflect contemporary practices and technological advancements in the arbitration space.

Discussion points

• Overview of the CRCICA
• Amendments to and key features of the CRCICA Arbitration Rules

Referenced in this article

• CRCICA Arbitration Rules 2024
• CRCICA Arbitration Rules 2011

CRCICA overview

The Cairo Regional Centre for International Commercial Arbitration (CRCICA) was established in 1979 by an international agreement signed between the Egyptian government and the Asian–African Legal Consultative Organization (AALCO). The AALCO had taken a decision during its 1978 Doha session to establish regional centres for international commercial arbitration in Asia and Africa.

The CRCICA is the oldest arbitration centre in Africa and the Middle East. It is an independent non-profit international organisation enjoying all the privileges and immunities of an international organisation fully independent from its host state. It administers international and domestic arbitrations and other alternative dispute resolution mechanisms under the CRCICA Arbitration Rules, which include provisions regarding arbitration, mediation and dispute boards. The CRCICA also provides administrative and technical assistance to parties involved in ad hoc arbitrations, as well as high-tech hearing rooms to parties involved in other institutional or ad hoc proceedings.

The institutional composition of the CRCICA reflects its nature as an international and regional organisation and its global scope. The board of trustees,^[1] which meets once a year and oversees the centre’s caseload, financial statements and general policy, is chaired by the newly-elected Chairman Nabil Fahmy (former minister of foreign affairs) and comprises two vice chairs from Cameroon and Lebanon along with 19 other eminent members from several countries, including Bahrain, France, Germany, Greece, Nigeria and Spain.^[2]

The CRCICA’s advisory committee^[3] includes African, Asian, European and US arbitration specialists. At present, it is composed of a chair, two vice chairs and 15 eminent members, including arbitration specialists from China, France, Germany, Lebanon, Russia, the United States and the United Kingdom. The committee opines on requests not to proceed with arbitral proceedings, as provided for in article 6 of the CRCICA Arbitration Rules, as well as on matters regarding:

• the approval of the CRCICAs decision not to proceed with the appointment of any arbitrator owing to past failures to comply with their duties under the Rules;
• the reduction or increase of arbitrators’ fees;
• the deprivation of a party’s right to appoint an arbitrator;
• CRCICA decisions to accept or reject requests for consolidation; and
• tripartite committees that are formed from among the members of the advisory committee^[4] to decide on arbitrator challenges and removal.

The day-to-day work and activities of the CRCICA are carried out by the director, the deputy director, associate director, counsels and employees in the following CRCICA departments:

• the Dispute Management Department;
• the Conferences, Training and External Relations Department;
• the Financial Department;
• the Human Resources and Administrative Department; and
• the Communications and Information Technology Department.

In the past eight years, the CRCICA director has, in deciding appointments and promotions, balanced efforts to reinvigorate the CRCICA while ensuring stability. New appointments have been made in each of the CRCICA’s departments, introducing a younger generation into its operations and achieving gender parity within the Centre, as well as a new generation of case managers, bolstering the number of trilingual case managers to accommodate the then-newly released French language version of the its Arbitration Rules.

The CRCICA was recognised by the African Development Bank (AfDB) in a 2014 report that assessed the arbitration centres in Cote d’Ivoire, Egypt and Mauritius (the AfDB 2014 Report).^[5] A 2022 update was released in the form of a report dedicated exclusively to the CRCICA and Egypt as a seat of arbitration (the AfDB 2022 Report).^[6]

According to the AfDB 2014 and 2022 Reports, the CRCICA ‘remains one of the best arbitration centres across the African continent and can readily be recommended for use by parties from both the African continent and elsewhere’. ^[7] The Report further states that the CRCICA fulfils the AfDB’s requirements of neutrality and independence, noting that the CRCICA’s Headquarters Agreement guarantees its neutrality by ensuring its immunity in relation to the host state (ie, Egypt). The CRCICA has even been recommended by the Report to administer cases filed against public entities of Egypt. ^[8] The AfDB 2014 Report also noted the ‘suitability of the CRCICA Rules for the conduct of important international arbitration proceedings’.^[9]

The AfDB 2022 Report highlighted users’ positive views on the strength of the CRCICA’s case management service:

The general view was that the quality of the services provided compared with large international centres like the ICC, the Stockholm Chamber of Commerce (“SCC”) or the London Court of International Arbitration (“LCIA”). The case volume has remained stable, and even increased, since our last report showing users’ confidence.^[10]

Regarding the decisions of the CRCICA’s advisory committee on requests to challenge individual arbitrators or the arbitral tribunal in its entirety, the AfDB 2022 Report mentioned that ‘based on our experience with other arbitral institutions, we found the decision provided in its reasoning and conclusion to meet the highest international standards’.^[11] It also noted that the CRCICA fulfilled the AfDB’s criteria regarding the autonomy of parties to select arbitrators: ‘the parties are not bound by a specific list’.^[12]

The CRCICA has featured on GAR’s regional centre white list since November 2016 and was recognised by GAR as regional institution of the year in 2013 and 2019. It won the award for ‘Arbitral institution that impressed’ at the Annual GAR Awards 2019^[13] in recognition of its commitment to improving diversity and its status as one of the most reasonably priced institutions in the world.

The CRCICA aims to promote regional, gender and age diversity and enhance transparency and neutrality. This goal is reflected in its appointment of arbitrators, who come from various backgrounds, and it has also been internally applied through the promotion of nine female employees among six promotions, one of whom was Dr Dalia Hussein who was promoted to deputy director of the CRCICA, and was elected by the BoT to serve as the next Director of the CRCICA effective 1 January 2026, (following the conclusion of Dr. Ismail Selim’s Directorship ).

To date, the CRCICA has administered more than 1,763 cases relating to disputes arising from almost all types of commercial and economic activities:

Between 2017 and 2020, it registered 291 cases involving 98 non-Egyptian parties and more than 80 non-Egyptian arbitrators, with 68 per cent of its cases in the Arabic language and 32 per cent in the English language.

In 2021, it registered 83 cases involving 34 non-Egyptian parties and 18 non-Egyptian arbitrators, with 75 per cent of its cases in the Arabic language and 25 per cent in the English language.

In 2022, it registered 83 cases involving 29 non-Egyptian parties and 14 non-Egyptian arbitrators, with 74.5 per cent of its cases in the Arabic language and 24.5 per cent in the English language.

In 2023, it registered 53 cases involving 22 non-Egyptians parties and 14 non-Egyptians arbitrators, with 83 per cent of its cases in the Arabic language and 17 per cent in the English language.

In 2024, it registered 76 cases involving 28 non-Egyptians parties and 15 non-Egyptians arbitrators, with 87 per cent of its cases in the Arabic language and 13 per cent in the English language.

To accommodate sub-Saharan and North African francophone users, the CRCICA issued the French version of its arbitration rules in March 2017. It registered its first arbitration case in the French language in 2022.

The CRCICA has administered three treaty-based investment cases, as well as cases involving small, medium and large amounts in dispute, including multibillion-dollar disputes. It has administered cases in which all the parties were Egyptian and their transaction related to Egypt, international cases involving one or more non-Egyptian parties, and purely international cases in which all the parties were non-Egyptian and the contract in dispute was performed outside Egypt.

Based on the CRCICA’s statistics, cases arising out of construction and contracts have ranked at the top of the types of disputes registered for several years.^[14] The CRCICA has also administrated cases in the oil and gas, waste management and telecommunications industries (eg, regarding concession agreements and joint operating agreements). The latter cases, despite being limited in number, all involved the GSM mobile and fixed lines operators in Egypt and involved sums in dispute amounting to millions, or even billions, of US dollars.

Arbitration Rules 2024

Introduction

After almost four years of work, the CRCICA has released its new Arbitration Rules (the Arbitration Rules 2024). The Rules entered into force on 15 January 2024 and are available in English, Arabic and French.

The drafting of the Arbitration Rules 2024 was started by a CRCICA internal team, which completed a thorough comparative study of the rules and guides of renowned arbitral institutions and took into consideration the CRCICA’s then existing practice notes. This was followed by comprehensive meetings with a working group from the CRCICA, as well as the CRCICA’s advisory committee and board of trustees, to share their different perspectives obtained through their experiences as arbitrators, counsel and arbitral institutions. In the interests of transparency and inclusivity, the CRCICA invited feedback by public consultation with the legal community, which was followed by collecting feedback from both the CRCICA’s advisory committee and board of trustees.

The CRCICA Arbitration Rules 2011 were amended to meet the needs of users and the evolving dispute resolution and trade landscape. Although the Arbitration Rules 2024 are still based on the UNCITRAL Arbitration Rules, as revised in 2010 (amended in 2013 and 2021), they still leave wide room for party autonomy. They maintain the flexibility of the UNCITRAL Arbitration Rules but are now more robust to respond to the evolving needs of the users of commercial arbitration: not only do the Arbitration Rules 2024 cover matters not covered by the UNCITRAL Arbitration Rules, but they build on the CRCICA’s experience from handling over 1,758 cases since its establishment in 1979. The Arbitration Rules 2024 aim at increasing the efficiency, flexibility and transparency of arbitral proceedings conducted under the CRCICA.

To highlight the changes to the Arbitration Rules, the CRCICA has released a document comparing the Arbitration Rules 2011 and the Arbitration Rules 2024.^[15] The methodology for the comparison is explained in the first comment on the first page of each document.

The remainder of this section will present an overview of the key amendments and updates that have been incorporated into the Arbitration Rules 2024.

New section VI

A new section VI titled ‘Other provisions’ includes matters that have been introduced into the Arbitration Rules for the first time and that are not dealt with under the UNCITRAL Arbitration Rules, namely consolidation of arbitrations, arbitrations arising out of multiple contracts, early dismissal of claims, third party funding.

Consolidation of arbitrations

The Arbitration Rules 2024 contain a new provision on the consolidation of arbitrations. Parties can now merge two or more arbitrations that are pending under the Arbitration Rules into a single arbitration. Article 50 contains comprehensive procedural requirements, encompassing the process for requesting consolidation, the communication of comments by non-requesting parties, the decision of the advisory committee and the determination of associated costs, including fees and expenses.

Multiple contracts

Article 51 address matters regarding multiple contracts, where parties can make claims arising out of or in connection with more than one contract in a single arbitration. The aim is to allow the parties to save time and costs when dealing with such claims.

In deciding whether the claims shall proceed in a single arbitration, the CRCICA considers relevant circumstances, such as whether the arbitration agreement under which the claims are made is the same or compatible and whether the relief sought arises out of the same transaction or a series of transactions.

Early dismissal of claims

To provide for a fair and efficient process and avoid any unnecessary delay or expense, article 52 has introduced the possibility of early dismissal of claims. It provides that the arbitral tribunal has the power, after hearing all the parties, to decide whether a claim is manifestly without legal merit and dismiss it at an early stage of the proceedings.

Third-party funding

Acknowledging the proliferation of third-party funding in recent years and presenting businesses with an opportunity to pursue arbitration claims while safeguarding liquidity and reducing risk, the Arbitration Rules 2024 require funded parties to disclose the existence of funding and the identity of the funder at the start of, and throughout, the arbitral proceedings.^[16]

Annexes to the Arbitration Rules 2024

Article 1(6) of the Arbitration Rules 2024 considers Annexes 1 to 4 to constitute an integral part of the Rules. During the amendment process, the CRCICA was prudent not to create any differences between the provisions of the four annexes and the main body of the Arbitration Rules 2024.

Annex 1: tables of administrative fees and arbitral tribunal fees

Table 1 of the Arbitration Rules 2011 was retained as ‘Administrative Fees’ in the Arbitration Rules 2024, Table 2 of the Arbitration Rules 2011 titled ‘Arbitrator’s Fees for sums in dispute not exceeding three million US Dollars’ was changed in the Arbitration Rules 2024 to ‘Sole Arbitrator Fees’, and Table 3 of the Arbitration Rules 2011 titled ‘Arbitrator’s Fees for sums in dispute exceeding three million US Dollars’ was changed in the Arbitration Rules 2024 to ‘Fees of the Arbitral Tribunal (3 or more arbitrators)’.

The new tables of the administrative fees and the arbitral tribunal fees have been modified to reflect a decade of economic developments, taking into consideration the importance of striking a balance between cost effectiveness and maintaining high-quality services to best serve the interests of users.

The administrative fees have been increased, especially where the amount in dispute is significant, as have the arbitral tribunal fees. For example, for a US$5 million sum in dispute, the arbitral tribunal fees for arbitrations with three or more arbitrators averages US$223,438 under the Arbitration Rules 2024 compared to the average of US$184,503 under the Arbitration Rules 2011. For a US$30 million sum in dispute, the arbitral tribunal fees for arbitrations with three or more arbitrators averages US$347,188 under the Arbitration Rules 2024 compared to US$303,303 under the Arbitration Rules 2011.^[17]

Annex 2: Emergency Arbitrator Rules

The title of article 26 of the Arbitration Rules 2011 has been changed from ‘Interim measures’ to ‘Interim measures and emergency arbitrator’. Special reference has been made to emergency arbitrators under article 26(1) of the Arbitration Rules 2024, which refers to the newly added Annex 2 titled ‘Emergency Arbitrator Rules’ to the Arbitration Rules 2024. This allows parties to seek emergency interim relief even before the arbitral tribunal is constituted.

This is a welcome addition to ensure parties have the option of obtaining relief in a timely manner in situations in which any delay could lead to significant prejudice or irreparable harm before the constitution of the arbitral tribunal.

Parties can request the appointment of an emergency arbitrator by submitting an urgent application.^[18] The emergency arbitrator shall be appointed by the CRCICA within two days of the CRCICA’s acceptance of the urgent application.^[19] The emergency arbitrator shall issue an emergency decision within 15 days of the date they received the case file; however, the time frame may be extended by agreement of the parties or, in exceptional circumstances, by the CRCICA.^[20] The emergency decision has the same binding as an interim measure granted under article 26 of the Arbitration Rules 2024 in accordance.^[21]

Annex 3: Expedited Arbitration Rules

A newly added paragraph 5 to article 1 of the Arbitration Rules 2024 allows parties to opt in arbitration under the Expedited Arbitration Rules, which are contained in Annex 3 of the Arbitration Rules 2024. Annex 3 is based on the UNCITRAL Expedited Arbitration Rules 2021, although there are some differences to reflect the CRCICA’s institutional perspective.

If the parties agree to apply the Expedited Arbitration Rules, a model expedited arbitration clause is provided at the end of the Arbitration Rules 2024 under a heading titled ‘Model Arbitration Clauses’. If the parties agree to use the Expedited Arbitration Rules, article 1(2) of Annex 3 provides that ‘[i]nsofar as this Annex 3 does not provide otherwise, the CRCICA Arbitration Rules shall apply to an arbitration under the Expedited Rules’. The parties can opt out of the Expedited Arbitration Rules at any time during the proceedings, in which case the arbitration will be conducted under the regular Arbitration Rules.^[22]

Awards issued under the Expedited Arbitration Rules must be made within six months of the date of the constitution of the arbitral tribunal unless otherwise agreed by the parties.^[23] However, the CRCICA may extend the time frame upon a reasoned request from the arbitral tribunal or on the Centre’s own initiative if it decides it is necessary to do so.

At the end of Annex 3, a table of ‘Arbitrator’s Fees (Expedited Arbitration)’ is outlined. The fees are 20 per cent less than those found in Tables 2 of Annex 1 titled ‘Sole Arbitrator Fees’ but have the same administrative fees as those listed in Annex 1. The reason for introducing lower arbitrator fees for expedited arbitration is to encourage parties to use the Expedited Arbitration Rules.

Annex 4: by-laws of the advisory committee

The by-laws of the CRCICA’s advisory committee were amended to expand the functions of the committee in deciding on matters relating to the Arbitration Rules 2024 and to reflect the new changes in the Rules.

Use of technology under the Arbitration Rules 2024

The Arbitration Rules 2024 aim to encourage and enhance the use of technology in arbitration proceedings in cases administered by the CRCICA:

• article 2(6) provides that ‘[t]he parties may use electronic means of communication, that provide a record of transmission, unless otherwise ordered by the arbitral tribunal as the case may be, and the Centre shall receive a copy of such electronic communications’;
• article 17(3) provides that ‘[t]he arbitral tribunal may, after inviting the parties to express their views and taking into account the circumstances of the case, utilize any technological means as it considers appropriate to conduct the proceedings’;
• article 28(2) provides that ‘[a]ny hearings may be held in person, remotely by videoconference or other appropriate means, or in a hybrid form, as decided by the arbitral tribunal after consulting with the parties’;
• article 7 of Annex 2 provides that ‘[t]he emergency arbitrator may conduct the proceedings in such a manner as he or she considers appropriate, taking into account the urgency inherent in such proceedings and ensuring that each party has a reasonable opportunity to be heard on the Urgent Application’; and
• article 3(2) of Annex 3 provides that ‘[t]he arbitral tribunal may utilize any technological means as it considers appropriate to conduct the proceedings’.

Online filing

One of the new developments in the Arbitration Rules 2024 is the introduction of the option to file the notice of arbitration^[24] and the response to the notice of arbitration^[25] online, as provided under articles 3(6) and 4(4), respectively, of the Arbitration Rules 2024. Article 2(3) of Annex 2 provides for the option of filing the application for an emergency arbitrator online.

The CRCICA aims to facilitate users’ experience when using the CRCICA website to file notices of arbitration, responses to notices of arbitration and emergency arbitrator applications by providing an online form or application that can be filled out according to the conditions set therein.

Key features of the Arbitration Rules 2024

Scope of application

In relation to the scope of application of the Arbitration Rules 2024, footnote 7 provides that ‘[a]ny similar labelling to the Rules of Arbitration of the “Cairo Regional Centre for International Commercial Arbitration” shall be deemed to provide for the application of the Rules’. This provision aims to address any mistakes by the parties when drafting the name of the CRCICA in the arbitration agreement. To illustrate, labelling the CRCICA as the ‘Cairo Arbitration Centre’, the ‘International Arbitration Center in Egypt’ or ‘CRICA’ would be deemed as reflecting the intention of the parties to refer to the CRCICA Arbitration Rules.

Date of commencement of the arbitral proceedings

The date of commencement of the arbitral proceedings was altered from the date on which the notice of arbitration is deemed to be received by the respondent to the date on which the notice of arbitration is deemed to be received by the CRCICA.^[26] Further, the arbitral proceedings shall not commence if the claimant fails to comply with any of the requirements provided in article 3(3).^[27]

This amendment was implemented to align the CRCICA with the common practice followed by most arbitral institutions worldwide, unlike the approach taken in ad hoc arbitrations where the date of commencement of proceedings is the date when the respondent receives the notice of arbitration. This amendment is important given its effect on the interruption of limitation periods.

Delivery of notices

Since its establishment, the CRCICA has delivered arbitration submissions to the parties, including the notice of arbitration to the respondent. Most arbitral institutions do not follow such a practice. From a practical standpoint and for the CRCICA to effectuate the delivery of a notice, a new addition to article 2(4)(c) was introduced: as a last resort, after exhausting all available means to deliver a notice, a notice is considered delivered by the CRCICA if it is delivered to the email address that the addressee displays to the public at the time of the communication.

Representation and assistance

Article 5(1) provides that ‘Each party may be represented or assisted by one or more persons chosen by it regardless of the jurisdiction in which they are based or practicing’; therefore, parties can appoint foreign legal counsel in arbitration under the Arbitration Rules 2024.

Further, the CRCICA introduced paragraphs 2 and 3 under article 5 to avoid procedural irregularities and conflicts of interest that may be exhibited by parties and legal counsel in a case as a result of changing the legal counsel after the constitution of the tribunal.

Articles 3(3)(c) and 4(1)(b) require parties to disclose the name(s) in full, the description, the address(es),the contact details and proof of authority of any persons representing them in the arbitration.

Decision not to proceed with arbitral proceedings

Article 6 was redrafted to provide greater clarity, with the prima facie test to be exercised by the CRCICA and the introduction of multiple contracts under article 51.

Nomination and appointment

Under the article 7, if the parties have not agreed on the number of arbitrators, the CRCICA can appoint a sole arbitrator upon the request of a party in consideration of the circumstances of the case and if the CRCICA finds it to be appropriate.

Under article 12(2), the CRCICA has introduced a clear distinction between the nomination of a prospective arbitrator and the appointment of the potential arbitrator after providing a written statement confirming his or her acceptance, availability, impartiality and independence. While nominated arbitrators do not need to be confirmed by the CRCICA, the CRCICA has updated the written statement it sends to prospective arbitrators so that it includes the CRCICA’s right not to proceed with the appointment of any arbitrator owing to past failures to comply with his or her duties under the Arbitration Rules.^[28] Moreover, article 9(2) has maintained its provision on the use of the identical list procedure for cases where the CRCICA is requested to appoint the sole or presiding arbitrator.

Diversity in appointment of arbitrators

Under articles 9(3) and 10(3), in appointing a sole or presiding arbitrator, a new sentence was added that reflects matters relating to diversity: The Centre shall also take into account the qualifications and the ability of the arbitrator to conduct the arbitration in accordance with the Rules, and considerations of diversity’.

Conduct of arbitration and joinder

The title of article 17 of the Arbitration Rules 2011 was changed from ‘General provisions’ to ‘Conduct of arbitration and joinder’. Joinder of additional parties had already been dealt with in article 17(6) of the Arbitration Rules 2011, but it has now become article 17(5) in the Arbitration Rules 2024, and a new provision on the appointment of a secretary to the arbitral tribunal was introduced in paragraph 6 of the same article.

Language of the proceedings

A newly introduced article 19(3) regulates the determination of the language of the arbitral proceedings before the constitution of the arbitral tribunal in the absence of an agreement by the parties. It provides that until the arbitral tribunal is fully constituted, the CRCICA shall determine the language after taking into account all relevant circumstances, including the language of the arbitration agreement.

Scrutiny of the form of the award

Under article 34(5), the CRCICA can review the form of the award to reduce the risk of it being set aside by the courts based on procedural aspects.

Law applicable to the arbitration agreement

To avoid any uncertainty, article 36(4) has been introduced. It provides that ‘The law applicable to the arbitration agreement shall be the law of the place of arbitration, unless the parties agree in writing on the application of other laws or rules of law’.

Model arbitration clauses

The model arbitration clauses provided at the end of the Arbitration Rules 2024 and on the CRCICA’s website^[29] introduce three new model arbitration clauses, which are designed to offer comprehensive guidance and increased convenience for parties when formulating arbitration clauses relating to future disputes, existing disputes and disputes under the Expedited Arbitration Rules.

Conclusion

After more than a decade since the introduction of the Arbitration Rules 2011, the CRCICA again became part of the wind of reform of major institutional rules. Its efforts culminated in the release of a set of modern rules that enhance transparency and flexibility to the benefit of its users.

For the first time, the Arbitration Rules are not simply a replica of the UNCITRAL Arbitration Rules: they include provisions that do not feature in the UNCITRAL Arbitration Rules to keep pace with best practices in the field of institutional arbitration and to provide an effective framework for institutional arbitration procedures.

The Arbitration Rules 2024 have introduced important amendments to bring the CRCICA arbitration in line with international standards and maintain its position as a leading arbitral institution in the Middle East and Africa. The Rules integrate contemporary practices and technological advancements to improve the efficiency, transparency and flexibility of the arbitration process. The CRCICA’s dedicated case management and competent advisory committee will maximise the benefits of agreeing to arbitrate under the Arbitration Rules 2024.

Endnotes