• Only 3% of Family Businesses Survive to the Third Generation Due to the Unavailability of Mediation in Dispute Resolution
• Mediation Success Rates in Resolving Disputes globally Range Between 70% and 85%
• Egyptian Business Community Shifts from Outright Rejection of Mediation to Incorporating Mediation Clauses in Partnership Agreements GAFI hosted a seminar titled "Commercial Mediation: Opportunities and Challenges" highlighting the latest Developments in the mediation’s role in settling economic disputes and enhancing the investment climate. The event was attended by Dr. Iman Mansour, Director of the Investor Dispute Settlement Center "IDSC"at GAFI; Dr. Marian Kaldas, Executive Director at the Egyptian Center for Arbitration and Settlement of Non-Banking Financial Disputes; and Dr. Gamal Abou Ali, Partner at Hassouna & Abou Ali Law Firm.
The seminar was moderated by Ms. Fatma Ibrahim, a dispute resolution consultant.
Dr. Iman Mansour emphasized that mediation plays a pivotal role in dispute resolution and is one of the key indicators for evaluating the investment climate.
She highlighted that mediation is one of the most effective mechanisms for exiting the market, noting that the United Nations has urged countries worldwide to sign Singapore Convention on Mediation, as it provides a more accessible and cost-effective approach for market exits. Moreover, Dr. Mansour announced that IDSC has successfully resolved approximately 300 commercial disputes through commercial mediation, without recourse to litigation. In most cases, these disputes were settled in less than a month.
This approach has redirected companies from dissolution decisions to signing new contracts, effectively giving them a fresh new start for their businesses.
Ms. Fatma Ibrahim pointed out that what sets mediation apart from other dispute resolution methods is its ability to consider cultural differences and keep up with rapid technological advancements, both of which are difficult to address through legislation.
Laws, by nature, are general, and enacting any legislation takes months or even years, unlike technological advancements in industry, which surprise us daily with new developments.
Dr. Marian Kaldas stated that mediation has successfully helped Egypt avoid numerous international arbitration cases in recent years, leading to strong government promotion of mediation activities. Dr. Kaldas also highlighted that 45% of Egyptian companies are family businesses, yet only 3% of them survive to the third generation due to unresolved disputes among partners. This underscores the importance of mediation in supporting Egypt’s business environment.
Furthermore, Dr. Kaldas emphasized the growing preference among companies for mediation as a dispute resolution method, as it ensures confidentiality, allows accredited mediators to stay informed on economic and technological developments, and enables them to create mutually satisfactory solutions for all parties.
Mr. Gamal Abou Ali added that several top business collages worldwide have incorporated mediation into their curricula on institutional development and decision-making fundamentals. In the Egyptian business community, there has been a shift from outright rejection of mediation to integrating mediation clauses into partnership contracts, particularly over the past five years, as businesses have become increasingly aware of the risks of delays and wasted time.
