Another Major Victory for Egypt: Gaillard Banifatemi Shelbaya Disputes Helps Secure Dismissal of $190 Million Claims

Working closely with the Egyptian State Lawsuits Authority (ESLA), our team successfully defended Egypt against a series of claims totaling USD 190 million in relation to a gas distribution concession in the Sharkeya governorate, one of Egypt’s most populous governorates.

The concession which was terminated in 2019 had been granted by the Egyptian General Petroleum Corporation to National Gas, a local SPV owned by Mr Magdy Rasekh, the in-law of former President Mubarak, and the family of Egyptian businessman Reda Genina.

In awards rendered on 2 July 2024, two Tribunals respectively constituted under the ICSID and UNCITRAL Rules declined jurisdiction over a number of claims and dismissed the remaining claims on the merits. The Tribunals were composed of Prof Gabrielle Kaufmann-Kohler (President), Dr Charles Poncet, and Dr Claus von Wobeser.

“Most notable” commented Mohamed Shelbaya, “was the Tribunal’s confirmation that the substantive standards of investment treaties, save possibly for umbrella clauses, only apply to conduct taken by the state in its sovereign capacity.”

The proceedings were two of the ten investment arbitrations in which members of our team have represented Egypt. This new victory comes on the heels of another recent major victory for Egypt where we helped the State secure the summary dismissal of claims worth USD 30 billion brought by four Saudi investors in relation to real estate development projects.

Yas Banifatemi, Mohamed Shelbaya, Youssef Daoud, Chaymaa Shady, Omar Elsada, Rana Hatata, Tatiana Lebbos, Deena Aboulwafa, Counselors Mosaad Abdel Maksoud, Ahmed Saad, Aya Sabry, Mohamed H. Negm, Radwa Sayed and Walaa Nayel.


Link to GAR article.