In July 2023, the Financial Regulatory Authority (FRA) of Egypt 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.

In terms of application, 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”).

Notably, 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 also 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.