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In brief

The Financial Regulatory Authority (FRA) recently issued decrees No. 139, No. 140 and No. 141 (“Decrees”) completing and complementing the Financial Technology (Fintech) Law No. 5 of 2022 (“Fintech Law”) which sets out the framework for the development and use of Fintech in non-banking financial services (NBFS). The Decrees, which came into force on 11 July 2023, come as part of the FRA’s continuing efforts to transition Egyptian financial markets towards digitization by encouraging the use of Fintech. 

Key takeaways

  • The Decrees are aimed towards (i) any entities licensed to offer NBFSs and intend to offer such services through Fintech tools and channels (“Licensed Companies”), (ii) any entities seeking to obtain a license to offer NBFSs through Fintech tools and channels (“New Companies”), and (iii) any entities wishing to provide Fintech outsourcing services for entities operating in the NBFS sector (“Outsourcing Service Providers”).
  • Licensed Companies, New Companies and Outsourcing Service Providers will be required to establish and verify the digital identity of users through a combination of three sub-processes: identification, verification and authentication, and as detailed in the Decrees, based on which the users will be granted access to the digital platform.
  • The Decrees officially recognize the concepts of ‘Click-to-accept’ contracts and ‘smart contracts’ for certain types of transactions as will be determined by the FRA in future decrees, provided that the requirements for validity of digital contracts detailed in the Decrees are satisfied.
  • The Decrees recognize and permit the use of blockchain technology in relation to e-registration, e-signatures, and the enforcement of and ability to automatically amend certain terms of smart contracts in the NBFS sector in accordance with the requirements and security measures imposed in the Decrees.
  • Licensed Companies and New Companies may offer their NBFS through the Fintech platforms offered by Outsourcing Services Providers, provided Outsourcing Services Providers are registered in the newly formed Outsourcing Register. To be eligible for registration on the Outsourcing Register, the Outsourcing Services Providers must be an Egyptian joint stock company with adequate experience in Fintech outsourcing services and must meet the minimum capital requirements and technological requirements set by the FRA and as detailed in the Decrees.

For further information and to discuss what this development might mean for you, please get in touch with your usual Baker McKenzie contact.

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Updated 2023 LOGO_Egypt Helmy Hamza & Partners Cairo

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Mostafa Lotayef is a counsel at Helmy, Hamza & Partners, Baker McKenzie Cairo. He has more than 10 years of experience focusing on various forms of banking and finance, including project finance, real estate finance, leveraged loan facilities, acquisition finance, and debt capital markets. Mostafa has gained extensive experience in drafting facility agreements, security documents and other finance documents for various debt finance structures, and has successfully counselled project sponsors and finance parties on energy and infrastructure projects.


Hania Meshref is an associate at Helmy, Hamza & Partners, Baker McKenzie Cairo. She advises a wide range of lenders, sponsors and borrowers on domestic and cross-border transactions, with a particular focus on syndicated loans, real estate finance and project finance. Hania is also currently involved in card payment processing and Fintech projects.

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