Joint Venture Agreements In Egypt: Governance, Control, And Exit Rights

A joint venture is one of the most practical ways for a foreign investor to enter the Egyptian market without having to build local capabilities from the ground up. It is a combination of capital, knowhow, market presence, licenses, sales channels or other capabilities by two or more parties under a certain business structure. But in Egypt, a joint venture is rarely just a business deal — and that distinction matters from day one.

It is necessary to consider in detail what control over the business will be granted; what contributions will be provided by each party; how the distribution of profits will be regulated; what sanctions will follow failure to comply with the joint venture agreement; what happens if one of the parties wishes to leave the partnership; and what will happen in the event of a dispute.