Debt Collection Egypt - Cedar Financial

Higher Success Rates in Egypt

Egypt debt recovery with results.

While the debt collection outlook in Egypt is better than most North African countries, it still helps to have local experts on your side. Cedar Financial’s clients see greater collections success with:

  • Vetted local debt collectors specialized in Egypt collections
  • Experienced creditor’s rights attorneys in Egypt
  • Egypt credit reports and in-person field visits

With on-the-ground representatives in Cairo and along the Nile, you can trust our “People-First” approach to resolve any claim, in less time, with more positive payment outcomes for your business.

See why Fortune 500 companies trust us with their accounts in Egypt.

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See how we recovered $1.9M on a difficult Egypt claim.

Top Challenges in Egypt Debt Collection

Language & Cultural Barriers

Egypt is the most populous country in North Africa, the Middle East and the Arab world, with over 100 million inhabitants. While Christianity is a large minority, Egypt is primarily a Muslim country, with Islam the main religion and Arabic the official language.

Creditors recovering debt in Egypt see higher levels of success when they work with a local Egyptian debt collection agency familiar with the language, culture and laws.

Cedar Financial’s expert Egyptian debt collectors are able to resolve most claims in the debtor’s own language, while abiding by Egyptian laws and customs. Request a quote for your claims today.

An Economy in Reform

In recent years, Egypt has had an issue with mounting public debt in its economy; however, it has a four-year plan in place to reform laws and modernize systems to significantly reduce its debt. which means a better outlook for foreign companies trying to collect on debts in Egypt.

Egypt aims to achieve a growth rate of over 6% and an inflation rate of 12% in 2020 and of 9.8% by the end of 2022, according to the Egypt Independent. In addition, Egypt is making amendments to income tax law and a new real estate tax law is being prepared to reduce the tax burden on the manufacturing sector.

While the debt collection outlook in Egypt is better than most countries in the region, it still helps to have local experts on your side. Cedar Financial has on-the-ground representatives in Egypt ready to advance your claim(s). Contact us today to get started.

Poverty & Political Unrest

Despite economic reform, poverty is widespread. Political and economic uncertainties, combined with a sometimes-difficult business environment, can affect payment behavior in Egypt.

An April 2019 referendum of constitutional amendments extended the President’s power, giving him direct control over judicial appointments, while extending the army’s control of many of the country’s economic levers. Anti-government protests erupted in September 2019 over frustration with the centralization of power, rendering the business environment unstable.

In addition, the availability of reliable corporate financial information varies, making it more difficult to locate debtors.

To reduce uncertainties for your business, Cedar Financial offers full-service accounts receivable management solutions in Egypt, including credit reports, in-person field visits, skip tracing services and professional credit risk consultants. Talk to one of our representatives today to learn more.

Submitting claims is fast and easy.

Litigation in Egypt

While every effort is made to resolve accounts amicably, sometimes a firmer approach is needed. Here’s what you need to know about legal process in Egypt.

Legal Process

Below is a step-by-step guide to the Egyptian legal process:

  1. Serve Notice: To begin legal proceedings in Egypt, the creditor must serve notice to the debtor, giving them an opportunity to pay (usually within a week).
  2. Statement of Claim: If no payment is made, a statement of claim is registered with the court clerk in the Courts of First Instance and the service is completed by submitting notice to the Public Prosecution in Egypt.
  3. Adjournments: After receiving the statement of claim, the next step is adjournments, which can range from a few weeks to several months. The debtor may choose to file a defense argument, mainly through documentation, through court hearings with a judge.
  4. Discovery: Discovery is not available as common law, but parties can request the court to order disclosure of a specific document, so long as it is identified in detail, and shown to be material and relevant to the case.
  5. Appeals: Appeals from the Court of First Instance can be made within 40 days of the first instance judgement (or 15 days in summary proceedings) to the Court of Appeal, with the branch dependent on where the debtor is located. These appeals are, in effect, new trials, in that all issues of fact may be reconsidered. Appeals may be made on the basis of errors of fact or incorrect application of a law. Expect appeals to take one to two years. An additional appeal may be made to the Court of Cassation upon alleged errors of law within 60 days of the Court of Appeal’s decision, with this process taking even longer, unless a stay of execution request is made.
  6. Enforcement of Judgment: For local judgements, a writ of execution is obtained from an execution judge, and the court bailiffs enforce it. For foreign judgements, enforcement requires valid jurisdiction by the court issuing the award and reciprocity. Egypt is a party to the Hague Service Convention of 1965 and several bilateral and multilateral treaties. Without a treaty allowing for direct enforcement, a court case is required to obtain a judgment for enforcement.

Successful litigation can be difficult for creditors unfamiliar with the legal process in Egypt. Cedar Financial carefully vets professional Egyptian debt collection lawyers to manage your case for you.

To learn more about our low-cost legal options, request a quote today.

Large Case Backlog Causes Significant Delays

While judges in Egypt respect and cherish principles of due process and accessibility to justice, a large number of cases before the courts has resulted in a huge case backlog, impacting the efficiency of the judicial system.

Creditors can expect the process to take a long time, with typical proceedings taking approximately two to three years. Appeals can take up to two years. Upon errors of law, a further appeal may be made to the Court of Cassation.

The good news is that judges are competent and impartial, so despite the delay, you can expect equal treatment and fair judgement in Egyptian court.

Long legal battles can cost you significant time and resources. Cedar Financial’s team of professional debt collection attorneys in Egypt handle everything for you from start to finish. We are familiar with the ins and outs of the legal system and work diligently on your behalf to keep proceedings moving.

Substantial Court Fees

Court fees may be substantial, as the Ministry of Justice raised court costs in 2009 to prevent frivolous proceedings. The unsuccessful party is responsible for costs, and this is enforced by the court. Lawyer fees are usually negligible and enforced by the court as part of the award. Interest may be awarded on costs up to 4%, if the party fails to pay or object within a certain period.

The prospect of paying legal costs can discourage many creditors from taking legal action. But done right, legal action is an essential part of your collection strategy.

At Cedar Financial, we take your best interests to heart by thoroughly vetting every claim for collectability in court before filing suit. This ensures the best chance of success before, during and after legal proceedings. We never recommend litigation unless we truly believe it will be worthwhile to you.

Arbitration as Alternative Solution

Due in part to the problem of the overloaded courts, the Egyptian legislature formulated the Arbitration Law No. 27 of 1994 to encourage arbitration as the main alternate, parallel mode of resolution for business, commercial and investment disputes, both domestic and international.

The arbitration agreement must be in writing, in a contract or correspondence signed by both parties, and settlement via arbitration must be possible. In the absence of an agreed time, the arbitral tribunal should render an award within 12 months.

Once rendered, the award is final and cannot be reviewed before the courts, except in the case of nullity proceedings, which are mostly based on procedural grounds.

Having a professional Egyptian legal collections agency on your side can help speed resolution of your claim(s) and reduce legal costs.

By starting legal proceedings, Cedar Financial is often able to open discussion with uncooperative debtors, enabling us to enter arbitration or agree on a settlement and avoid additional costs.

Recover more with top debt collection attorneys in Egypt.

Quick Facts About Debt Collection in Egypt

Open Invoices

Unpaid Invoice Interest Rate
 Cannot exceed 7%.
Can Collection Fees be added?  No.
Statute of Limitations/Prescription 7 years.


Post Judgment Interest Rate Limited to 4%.
Judgment Expiration Judgments don’t expire and can be enforced anytime until the full judgment sum is paid.
Can judgment be renewed? Judgments can only be renewed on appeal.

Local Experts in Collections

We offer on-the-ground representatives in Egypt who understand the debt collection practices that work to support full recovery of your funds.


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Case Study: $1.9M Pharmaceutical Settlement in Egypt

Industry: Pharmaceutical, Commercial

Location: Egypt

Results: $1.9M settlement within 10 months.


A distributor for a global pharmaceutical company owed $4 Million for products. Internal collections efforts failed to return an adequate response. After three months, the client placed the claim with Cedar Financial for commercial debt collection.

The Challenge:

The distributor kept delaying payment with excuses, claiming licensing issues with the Egyptian government, setbacks in clearing customs, problems getting timely payments from suppliers and other foreign exchange issues.

In addition, prior to placing the claim with our office, the original creditor subsidiary dissolved its business and a Middle Eastern division of the pharmaceutical company took over. This led to disorganization and difficulty locating documentation for the claim.

Our challenge was getting the Egyptian distributor to address the debt, despite their own challenges and struggles, without supporting documents for the claim.

How Cedar Financial Solved the Problem:

Our local Egypt debt collection office had many face-to-face meetings with the debtor’s board of directors. We patiently explained the potential damages to their business if they failed to pay – including possible blacklisting that would harm future business prospects.

After 10 months of persistent communications, we succeeded in securing a settlement that was suitable for both client and debtor, recovering $1.9 million for our client.

The Takeaway:

Having a local presence made all the difference in this case, as our professional Egypt debt collectors were able to visit the debtor in person for more effective negotiations.

Familiarity with the local language, customs and laws enabled our collections team to facilitate a very suitable settlement in a country notorious for its difficult collections environment, despite significant challenges with both debtor and creditor.

Ready to see what a local presence in Egypt can do for you?

FAQs About Debt Collection in Egypt

Why should we ask you to collect our debts in Egypt?

We have expertise with the characteristics of our local market, professionalism in dealing with consumer and commercial debt cases and a wide network which allows us to serve our clients without limitations.

What does it cost to hire you to recover the amount due to us?

For pre-legal services, we work on a “no collection – no fee” basis, so you will only pay when your funds are recovered. For legal services, we offer low-cost options.

What is the minimum amount or number of accounts you will accept?

We have no minimum value or volume that is required to place accounts.

What type of debt do you service?

We service consumer and commercial debts, large or small, across many industries.

How long will your amicable (non-legal) debt collection process take?

The timeline greatly depends on the case, negotiations, debtor’s cooperation and the flexibility of the creditor. Normal debt collection proceedings can take up to one year.

What is the typical debt collection process?

We start with an initial investigation into the debtor’s registration and credit information. Phone calls, demand letters, emails and sometimes faxes are then sent out. If the debt is disputed, we request proof from the debtor to send to the creditor. If the debtor cannot be contacted, our Tracing Center will carry out an address and phone search. We also request a face-to-face meeting, if necessary. If all efforts do not lead to payment, we may suggest a legal filing.

What is the statute of limitations in Egypt, for older debts?

The statute of limitations in Egypt is seven years.

Do you provide field services?

Yes, we provide on-the-ground representatives to visit your debtor in person at their location. We skip trace, contact evasive debtors and investigate assets for potential legal action.

Do I need to provide documentation?

Documentation is necessary, especially if the debtor denies the debt. It also helps us to understand the nature of the debt, which helps in our dialogue with the debtor.

Do you offer litigation services if you exhaust all amicable collection efforts without recovery?

Yes. In the event all amicable efforts are exhausted, our in-house legal team will conduct a thorough review of the file to determine collectability in litigation. If the file qualifies and you approve, we will work with the local attorney in your debtor’s jurisdiction to file suit and pursue the claim, including asset location, arbitration, trial representation, obtainment of a judgment and post-judgment enforcement.

Are collection fees legal to be added to the balance owed?

Collection fees are not allowed.

* The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.

Cedar Financial