Egypt underwent many economic and legal reforms that resulted in remarkable economic growth at the turn of the century. Due to widespread corruption, however, this economic growth mostly benefited the small clique of powerful officials and businessmen. Unsatisfied Egyptians then took their demands for a better life to the streets, culminating in the January Revolution. Although there were other political motivations to the Revolution, socioeconomic stances were at its heart.
The Revolution is expected to have a positive impact on curbing corruption and enhancing law enforcement. Still, the social anarchy and political instability caused by the Revolution have shaken investor confidence in the Egyptian market. To restore confidence in Egyptian markets and encourage post-Revolution investment, Egypt’s economic laws, particularly the Capital Market Law and the Investment Law should be attractive to investors.
The CML was initially an incomprehensive regulation of Egypt’s capital market and did not include vital activities and practices in its provisions. Due to several amendments over the years, the CML has become a substantively mature legislation. The major concern about Egypt’s capital markets is a lack of legal compliance. Therefore, new methods that encourage better compliance must be developed.
Similarly, the ILI has progressively introduced a number of incentives designed to promote various aspects of investment within the last few years. Most of these incentives, however, ended due to either ILI operation or unfair practices that restricted competition and monopolized specific production sectors. The ILI needs to be reconsidered to restore investment in Egypt in the aftermath of the Revolution. Raising legal compliance and developing methods to enhance its enforcement are amongst the most crucial reforms imminently required to boost the Egyptian economy.These reforms will increase the level of transparency and promote investors’ confidence in the Egyptian market.
The full article was published in the Richmond Journal of Global Law and Business, Vol. 11, No. 3, 2011 and the Journal of African and International Law, Vol. 4, No. 2, 2011. It can be accessed through the SSRN here: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1860484 Ahmad A. Alshorbagy:
- Commercial Law Assistant Professor, Alexandria University Law School, Alexandria, Egypt;
- S.J.D. Candidate 2009, LL.M. 2008, the University of Virginia School of Law, Charlottesville, Virginia;
- B.A. 2006, Alexandria University Law School, Alexandria, Egypt.
Radwa S. ElSaman:
- Commercial Law Assistant Professor, Cairo University Law School, Cairo, Egypt;
- Associate with Ibrachy-Dermarkar Law Firm, Cairo, Egypt;
- S.J.D. Candidate 2009, LL.M. 2008, The American University Washington College of Law, Washington D.C.;
- L.L.M. 2005, The International Maritime Organization International Maritime Law Institute, Malta; Postgraduate Diploma in Civil Law 2003,
- B.A. 2002, Cairo University Law School, Cairo, Egypt.