Egypt: New Law Governs Contracts With The State – Law No. 182 Of 2018

Last Updated: 7 January 2019
Article by Marina Iskander

The new tenders and bids law of 2018 was put in place to cancel that of 1998 and govern business transactions that involve the state.

In light of recent events, the introduction of this law was a crucial step in ensuring the execution of safe and fair business transactions with the state. Previously, the state had faced problems in attempting to cancel tenders and bids that had already occurred. However, certain provisions of this law make it clear that such cancellation could not happen except in very specific circumstances.

The law first starts by defining a number of aims. Among these aims is the correct organization and execution of contracts in general, ensuring that they matters are as economically beneficial as possible. The law also aims to encourage relevant entities to constantly create new and innovative methods and solutions. Moreover, it clearly lays out that it attempts to create a good climate in which small and medium sized enterprises can grow.

To fulfill these aims, Articles 3-5 of the law create new authorities to oversee such tenders and bids, as well as handle any complaints rendered to them.

Moreover, Article 7 clarifies that any buying or leasing of real or personal property, as well as any contract for services, must generally be subject to a public tender. In exceptional cases, the relevant authority may instead allow the sale or contract to proceed through general practice, limited practice, private bidding, a local tender, a two-stage tender, or a direct agreement.

If an entity has no legal personality, it will also have to carry out any buying or leasing through a public tender, and exceptionally through a limited tender, a local tender, or a direct agreement.
Some of the methods above are new ways to carry out bids and tenders; such as the two-stage tender and the option of direct agreement.

Two-stage tenders can be used in cases which the authority finds the subject of the tender complicated or difficult to specify, allowing the parties to communicate with one another.

As for the direct agreement stipulated above, the law allows for entities to contract for goods or services without a tender or bid and through direct agreement in the following cases:

  • If the matter is time-sensitive
  • If only one entity is capable to provide the service
  • If the service was previously carried out without a contract and the entities wish to continue working together contractually
  • If the subject matter supports the political, social, and economic goals of the state
  • In cases where there is no time to carry out official tender procedures

Direct agreement can then take place through the approval of the head of the authority so long as the value of the matter does not exceed EGP 1 million in the cases of buying or leasing, EGP 5 million in cases of contracting for services. However, if the matter exceeds EGP 10 million or EGP 20 million respectively, it would require the approval of the competent minister or governor.

Article 8-27 govern how an agreement is presented and then carried forward. While many of these rules are carried over from the new law, a few new ones include:

  • Expedited measures for time-sensitive tenders or bids
  • Warnings against meddling in a tender or bid by visiting the headquarters of the bidders
  • Reducing the temporary insurance amount in tenders from 2% to 1.5%

Most importantly, the law then proceeds to go into a number of new measures prohibiting and allowing certain practices in order to make bids and tenders more efficient. For instance, article 33 warns entities against entering into more than one bid or tender. Article 35 further stipulates that if the prices in a bud or tender seem too low, authorities will step in to inspect the integrity of the matter. Furthermore, as mentioned above, the law tightly regulates the circumstances under which a tender or bid may be cancelled. Articles 37 and 38 explain that tenders can only be cancelled if any illegal acts are carried out, such as collusion between bidders, acts of corruption or monopolization, or mistakes in the rules of the bid or tender.

In more specific cases, a tender or bid will be cancelled if:

  • After all bids are inspected, all are excluded except for one
  • If the relevant authority finds faults in all the bids
  • If the value of the smallest bid is too low

Such a decision to nullify a bid or tender must come from the relevant authority and must be clearly communicated to the bidders through both mail and e-mail. The parties can then, as per Article 39, present their complaints to the oversight authority.

All in all, the new law is one that was much needed in light of recent events, which had been reason for complaint by both individuals and business entities. The new law instead clarifies matters which had been previously unclear, such as the cancellation of a tender or bid, as well as introduces new and updated methods to carry out such transactions. Contracts which the state is a part of must be concluded fairly and in full transparency – and the new law ensures just that.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions