Under the Egyptian Commercial Code, the starting point for any commercial dispute is your contract itself. Article 5 establishes that commercial matters are first governed by the agreement of the contracting parties. This means well-drafted contracts that specify governing law, dispute resolution mechanisms, and obligations are extremely important for expats doing business in Egypt.
If your contract is silent on a particular issue, Article 5 provides that the Commercial Code and other relevant commercial laws fill the gap. Where no applicable commercial law provision exists, Egyptian commercial custom and practice applies, and only if there is no established custom will the judge apply general principles of law. This hierarchy means Egyptian commercial custom can play a significant role — something expats may not anticipate if they are used to fully codified legal systems.
There is also an important nuance in Article 6: if a contract is commercial for only one party (for example, you are a merchant but the other party is a private individual), commercial law applies only to the merchant's obligations, while the non-merchant party's obligations are governed by civil law. This mixed-law scenario can affect remedies and enforcement, so expats entering contracts with both business and individual counterparties should seek legal advice to understand which rules apply to each side of the deal.
This is general legal information, not legal advice. For advice on your specific situation, consult a lawyer licensed in Egypt.