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Commercial Mediation before CRCICA and the Arb-Med-Arb Path

Commercial mediation before the Cairo Regional Centre for International Commercial Arbitration (CRCICA) is one of the flexible institutional means of resolving commercial disputes. It enables the parties to engage a neutral mediator who assists them in reaching a settlement whose terms they themselves determine, rather than having a solution imposed upon them. This route is particularly important where preserving the commercial relationship, confidentiality, and reducing the time and cost of the dispute are key considerations for companies and investors.

The Centre also offers the Arb-Med-Arb path, whereby arbitration is commenced first and then stayed to allow an attempt at mediation, before returning to arbitration if settlement fails, or—where the requirements are met—converting a successful settlement into an award on agreed terms (Consent Award / Award on Agreed Terms). This does not mean that every mediation settlement automatically becomes an arbitral award or that its international enforcement is guaranteed in every jurisdiction. A distinction must be drawn between a settlement agreement as a written contract and an arbitral award rendered on the basis of that settlement.

What Is Commercial Mediation before CRCICA?

CRCICA’s Mediation Rules define mediation as a flexible and confidential process in which a neutral person assists the parties in working toward settlement of their dispute, while the ultimate decision whether to settle, and on what terms, remains with the parties themselves. The Centre’s currently applicable mediation rules are the 2013 Mediation Rules, not the 2024 Arbitration Rules.

Mediation before the Centre may be commenced in several ways: pursuant to a pre-existing mediation clause in the contract, by a subsequent agreement after the dispute has arisen, or following an invitation from one party that is accepted by the other. Accordingly, the Centre does not acquire automatic authority over a dispute merely because one party wishes to mediate, unless there is a prior binding agreement to mediate or the other party accepts the invitation.

What Is the Arb-Med-Arb Path before CRCICA?

CRCICA has published guidance and a model clause for the Arb-Med-Arb path. The basic concept is that arbitration is commenced first, and after constitution of the arbitral tribunal the parties agree to attempt to settle all or part of the dispute through mediation before the Centre. They may request a stay of the arbitration during the mediation period, while preserving the ability to seek urgent measures where necessary.

  1. Commencement of arbitration and constitution of the tribunal: The dispute is registered pursuant to the arbitration agreement and the applicable CRCICA rules.
  2. Transition to mediation: After constitution of the tribunal, the parties agree to refer the dispute, or part of it, to CRCICA mediation and, where needed, request a stay of the arbitration.
  3. Appointment of an independent mediator: The mediator is selected under the Mediation Rules, with separation between the mediator and the members of the arbitral tribunal being the best practice reflected in CRCICA’s published path.
  4. Successful mediation: The settlement is reduced to writing and signed by the parties. If the parties so request and the arbitral tribunal agrees, the settlement may be recorded as an award on agreed terms, provided that the settlement falls within the scope of the arbitration agreement.
  5. Failed mediation: The mediation terminates and the arbitration resumes at the request of a party, without settlement offers or concessions made during mediation becoming substantive evidence against any party, subject to the applicable confidentiality rules and legal exceptions.

Is There an Official Arb-Med-Arb Clause at CRCICA?

Yes. The Centre publishes a contractual model for the Arb-Med-Arb path. It provides for arbitration to commence under the CRCICA Rules and then permits mediation after constitution of the arbitral tribunal, with a recommendation that no member of the arbitral tribunal serve as mediator in the same dispute. The model also proposes a defined mediation period, extendable once, which helps prevent mediation from becoming a means of delay.

The path does not always have to be included in the contract from the outset; the parties may agree to it after the dispute arises. However, incorporating it in advance within a multi-tiered dispute-resolution clause may reduce disagreement over the timing, duration, and effect of mediation on the arbitration.

Legal Framework for Mediation and Amicable Settlement

First: CRCICA Mediation Rules

The 2013 Mediation Rules regulate the appointment of the mediator, conduct of mediation sessions, termination of the mediation, confidentiality, and costs. Under Article 10, a settlement resulting from mediation does not become legally binding unless it is reduced to a written instrument and signed by the parties or their representatives.

Second: CRCICA Arbitration Rules 2024

Article 37 of the 2024 Arbitration Rules provides that if the parties reach a settlement before the award is rendered, the arbitral tribunal may terminate the proceedings or—if the parties so request and the tribunal agrees—record the settlement in the form of an award on agreed terms. The tribunal is not required to state reasons for this type of award.

Third: Egyptian Arbitration Law No. 27 of 1994

Article 41 of the Egyptian Arbitration Law reflects the same principle: if the parties agree during the arbitration on a settlement that resolves the dispute, they may request the arbitral tribunal to record the terms of that settlement in an award on agreed terms. For enforcement purposes, such an award has the same effect as other arbitral awards.

Confidentiality: What Happens if Mediation Fails?

Confidentiality is one of the principal features of CRCICA mediation. Article 11 of the Mediation Rules requires, as a general rule, the parties, their representatives, the mediator, and the Centre to maintain the confidentiality of documents, information, proposals, and settlement terms, subject to disclosure required by law or necessary to enforce the settlement agreement.

The Rules also restrict the use, as evidence in other proceedings, of information and offers generated for the purposes of the mediation, subject to applicable legal exceptions. For this reason, CRCICA’s guidance for the Arb-Med-Arb path recommends that the mediator be a person different from the members of the arbitral tribunal, so that an arbitrator is not exposed to confidential information or settlement offers that might later give rise to questions concerning impartiality or independence.

Can the Arbitrator Act as Mediator?

Some international models permit combined roles by agreement of the parties in certain circumstances. However, CRCICA’s published guidance for the Arb-Med-Arb path strongly recommends separating the mediator from the arbitral tribunal, and the model clause for this path provides that no member of the arbitral tribunal shall be appointed as mediator.

This separation is procedurally safer because it prevents confidential information received by the mediator in caucuses or private meetings from passing to an arbitrator who may later be required to decide the merits of the dispute.

Enforcement of the Settlement: Mediation Agreement or Consent Award?

Two distinct routes must be distinguished:

  • Settlement agreement resulting from mediation: Under the CRCICA Rules, it becomes binding once reduced to writing and signed. The manner of enforcement is governed by the applicable law and the enforcement mechanisms available in the relevant jurisdiction.
  • Arbitral award on agreed terms: Where arbitral proceedings are already pending and the parties request that the tribunal record the settlement, and the tribunal agrees, an arbitral award is rendered that may be enforced under the regime applicable to arbitral awards, including the New York Convention where its requirements are satisfied.

It should not be stated that every Consent Award is “guaranteed to be enforceable in all States parties” to the New York Convention. Enforcement remains subject to the Convention’s requirements, the law of the enforcing State, and the limited grounds for refusal provided therein.

What Is the Role of the Singapore Convention on Mediation?

The United Nations Convention on International Settlement Agreements Resulting from Mediation—known as the Singapore Convention on Mediation—provides an international framework for the enforcement of certain international commercial settlement agreements resulting from mediation. However, the Convention excludes from its scope a settlement agreement that is already enforceable as an arbitral award, in order to avoid overlap with the New York Convention.

Egypt signed the Singapore Convention on 13 January 2026, but as of September 2026 had not ratified or acceded to it in a manner making it effective for Egypt. Accordingly, an enforcement strategy for a mediation settlement in Egypt should not currently be based on the Convention as though it were domestically in force.

Mediation before Arbitration or Arb-Med-Arb?

CriterionMediation before ArbitrationArb-Med-Arb
When mediation beginsUsually before arbitration commencesAfter arbitration has commenced and the tribunal has been constituted under CRCICA’s published model
Existence of an arbitral tribunalNoYes
Return to arbitration if mediation failsArbitration must be commenced after the amicable stage endsThe existing arbitration resumes
Possibility of a Consent AwardNot immediately possible unless arbitral proceedings are subsequently commencedPossible at the parties’ request and with the tribunal’s agreement if the settlement falls within the scope of the arbitration agreement
Risk of consuming timeMay delay commencement of arbitration if the clause is drafted without clear time limitsCan be controlled through a defined stay period

Practical Steps for the Arb-Med-Arb Path before CRCICA

  1. Review the arbitration agreement: Confirm that a valid arbitration agreement exists and covers the dispute and the claims intended to be settled.
  2. Commence arbitration: Submit the Notice of Arbitration and constitute the tribunal under the applicable rules.
  3. Parties agree to mediation: Define the issues referred to mediation, the duration, and the treatment of interim measures during the stay.
  4. Select the mediator: Appoint an independent mediator or leave the nomination to the Centre under the Mediation Rules.
  5. Request a stay of arbitration: If the parties agree, request that the tribunal suspend the procedural timetable for a defined period.
  6. Conduct mediation confidentially: Keep the exchange of settlement offers separate from the merits record before the arbitral tribunal.
  7. Document the outcome: If mediation succeeds, reduce the settlement to writing and sign it. If a Consent Award is desired, refer the settlement to the tribunal to the extent covered by the arbitration agreement.
  8. Resume arbitration if mediation fails: If mediation is unsuccessful, the dispute returns to arbitration without using mediation materials in a manner inconsistent with the confidentiality rules.

Key Legal and Procedural Risks

  • Ambiguous multi-tiered dispute-resolution clause: This may create a dispute over whether mediation is a mandatory precondition to arbitration, how long it must last, and whether failure to complete it affects admissibility of the claim.
  • Confusing a settlement agreement with an arbitral award: Signing a mediation settlement does not automatically make it an arbitral award.
  • Combining the roles of mediator and arbitrator: This may create confidentiality and impartiality risks if the same person is exposed to information unavailable to the other party.
  • Including terms outside the scope of the arbitration agreement in a Consent Award: The tribunal should not record as an award on agreed terms matters exceeding its arbitral jurisdiction.
  • Unintended waiver of rights: The authority of corporate representatives to negotiate and sign should be carefully controlled, particularly in major transactions or companies requiring internal approvals.

Common Mistakes and Correct Practice

Common MistakeProblemCorrect Practice
Stating that mediation before CRCICA is governed by the 2024 RulesConfuses the Arbitration Rules with the Mediation RulesApply the 2013 Mediation Rules to mediation and the 2024 Arbitration Rules to arbitration where applicable
Treating an oral settlement as immediately bindingArticle 10 requires writing and signaturePrepare a written settlement agreement signed by persons with authority to bind the parties
Treating a Consent Award as an automatic rightRequires the parties’ request and the arbitral tribunal’s acceptanceConfirm that the tribunal retains jurisdiction and that the settlement falls within the arbitration agreement
Using a member of the arbitral tribunal as mediator without careful safeguardsCreates risks involving confidential information and impartialityAppoint an independent mediator in accordance with CRCICA’s Arb-Med-Arb guidance
Stating that the New York Convention directly enforces a mediation settlement itselfThe New York Convention concerns arbitral awards and arbitration agreementsDistinguish between enforcement of the settlement agreement and enforcement of an arbitral award on agreed terms

Best Practices for Companies and Investors

  • Set a clear mediation period: To prevent mediation from being used as a means of delaying arbitration.
  • Separate communication channels: Do not file settlement offers or mediation submissions in the arbitration record except to the extent permitted by the agreement and the applicable rules.
  • Verify signing authority: Confirm in advance that the company representatives have authority to enter into a settlement.
  • Prepare a legal and financial settlement assessment: Include prospects of success, cost of continuing, enforcement risks, and the settlement’s impact on related contracts and commercial relationships.
  • Draft enforcement terms precisely: Specify currency, deadlines, security, releases, confidentiality, consequences of breach, and treatment of costs and interest.

When Is a Specialized Lawyer or Local Counsel in Egypt Required?

Specialized legal involvement becomes particularly important where the dispute is connected to a contract governed by Egyptian law, where the seat of arbitration is in Egypt, or where the settlement agreement or arbitral award is intended to be enforced in Egypt. This includes in particular:

  • Drafting multi-tiered mediation and arbitration clauses and determining the effect of bypassing any stage.
  • Managing the stay and resumption of arbitration during an Arb-Med-Arb process.
  • Reviewing the authority of corporate representatives to enter into a settlement.
  • Drafting an enforceable settlement agreement and determining whether it is appropriate to request a Consent Award.
  • Handling enforcement proceedings or annulment actions where Egypt is the seat of arbitration or the State of enforcement.

How Can Specialized Legal Support Help?

El Rouby Law Firm provides legal support to companies, investors, and international law firms in arbitration and mediation disputes connected with Egypt, including reviewing dispute-resolution clauses, assessing the most appropriate route, drafting settlement agreements, coordinating with international legal teams in CRCICA proceedings, and handling the necessary judicial proceedings in Egypt at the enforcement or annulment stage.

Conclusion

The Arb-Med-Arb path before CRCICA provides a practical means of combining the flexibility of mediation with the stability of an arbitral framework. Its effectiveness, however, depends on precise drafting of the process, separation of the roles of mediator and arbitrator, protection of mediation confidentiality, and avoiding confusion between the settlement agreement and an arbitral award on agreed terms. When these elements are properly managed, the path can preserve commercial relationships and reduce the cost of the dispute, while retaining arbitration as the decisive mechanism if settlement is unsuccessful.

Frequently Asked Questions

What mediation rules are currently applicable at CRCICA?

The rules currently published are the 2013 Mediation Rules, which are separate from the 2024 Arbitration Rules.

Does CRCICA have an official Arb-Med-Arb path?

Yes. The Centre has published a Guidance Note and a model clause for the path, based on commencing arbitration and then attempting mediation after constitution of the tribunal, with the possibility of resuming the arbitration if mediation fails or requesting a Consent Award if settlement succeeds.

Is a mediation settlement itself an arbitral award?

No. A written and signed settlement agreement is a binding contract, but it does not become an arbitral award unless arbitral proceedings are pending, the parties request that the tribunal record the settlement as an award on agreed terms, and the tribunal accepts that request.

Can the arbitrator also act as mediator?

CRCICA’s guidance for the Arb-Med-Arb path strongly recommends using a mediator independent from the arbitral tribunal, and the published model clause excludes the appointment of a tribunal member as mediator.

Is Egypt a party to the Singapore Convention on Mediation?

Egypt signed the Convention on 13 January 2026, but as of September 2026 had not ratified or acceded to it in a manner making it effective for Egypt.

References and Official Authorities

  1. CRCICA – CRCICA Mediation Rules: https://crcica.org/mediation/crcica-mediation-rules/
  2. CRCICA – Arb-Med-Arb under CRCICA: https://crcica.org/mediation/arb-med-arb/
  3. CRCICA – Mediation Model Clauses: https://crcica.org/mediation/model-clauses/
  4. CRCICA – Arbitration Rules 2024: https://crcica.org/arbitration/crcica-arbitration-rules/
  5. WIPO Lex – Egyptian Arbitration Law No. 27 of 1994: https://www.wipo.int/wipolex/ar/legislation/details/8334
  6. UNCITRAL – Singapore Convention on Mediation: https://uncitral.un.org/en/texts/mediation/conventions/international_settlement_agreements
  7. UNCITRAL – Status of the Singapore Convention: https://uncitral.un.org/en/texts/mediation/conventions/international_settlement_agreements/status