The financial sector faces complete transformation because technology continues to change all aspects of modern life in our rapidly evolving world. The financial technology sector, known as law firm fintech, has revolutionized money management through mobile wallets and online lending platforms and digital banking systems.
The largest Arab nation with a young population base is using determined measures to achieve complete digital transformation in its financial industry as a law firm fintech. The Central Bank of Egypt (CBE) Fintech and Innovation Strategy serves as a strategic initiative which drives this transformation while making Egypt a top Fintech center in the Middle East and North Africa region.
This piece explores Egypt’s Fintech journey from innovation and regulation to the legal expertise that enables startups and financial institutions to grow safely and sustainably.
2. What exactly is Fintech and why should we care about it?
Fintech can be defined as the use of modern and innovative technological tools within both the banking and non-banking financial sectors to support and facilitate financial, funding, and insurance activities. The implementation of this strategy can be done through various tools which include applications, software, digital platforms, artificial intelligence and electronic records. This definition is consistent with the provisions of the fintech law firm. The Banking Law No. 5 of 2022 established rules for financial technology operations in non-banking financial services and the Banking Law No. 5 of 2022. 194 of 2020, which governs the application of technology in banking and payment services.
3. Egypt’s Legal and Regulatory Framework for law firm fintech
The fintech sector in Egypt functions under a regulatory system that combines standard digital rules with financial regulations that apply to specific sectors of law firm fintech.
General (Non-Fintech-Specific) Regulations:
The legal structure of Egypt that governs digital operations and technology exists through various fundamental laws.
- Telecommunications Law No. The 10 of 2003: law controls digital communication services operated by licensed telecom operators, while it also covers mobile wallets and cloud services and data centres.
- E-Signature Law No. 15 of 2004: The law allows electronic contracts and digital authentication systems to operate under Information Technology Industry Development Agency (ITIDA) oversight.
- Personal Data Protection Law No. 151 of 2020: The law sets up data protection rules for personal information processing, but it needs executive regulations to become fully effective. It is worth noting that the banking sector is excluded from its scope, as the Central Bank of Egypt is the competent authority for data protection within financial institutions.
- Anti-Cyber and Information Technology Crimes Law No. 175 of 2018: sets rules to prevent illegal online activities and data breaches that threaten cybersecurity systems.
Sector-Specific Financial Regulations:
The banking sector is primarily governed by the fintech law firm. The CBE received full authority to create specific rules for digital banking and electronic payments through Article 194 of 2020.
In parallel, the non-banking financial sector is governed by the law firm fintech No. 5 of 2022, complemented by a series of Financial Regulatory Authority (FRA) decrees that regulate various non-banking Fintech activities, such as consumer finance, insurance, and capital markets, all falling under the supervision of the FRA.
The regulatory frameworks of Fintech operations provide clear oversight to most financial technology operations but multiple areas exist in legal uncertainty or between different regulatory bodies. When dealing with these situations, it becomes necessary to obtain a professional fintech industry law firm and contact the appropriate regulatory body for proper compliance.
4. The Fintech industry operates under various essential legal restrictions that create challenges for its operational activities which is why specialized fintech law firms play a crucial role.
The Fintech industry in Egypt faces several ongoing challenges that could affect its growth and stability. The sector faces ongoing cybersecurity threats because digital platform usage continues to rise which creates more opportunities for data breaches and fraudulent activities. The economic instability creates barriers to funding because it restricts investment possibilities which hinders the advancement of new Fintech solutions. Consumer trust stands as the key to success for this sector since any case of fraud or data loss would damage this essential foundation.
The development of digital financial systems faces two main obstacles which stem from insufficient skilled personnel and inadequate rural infrastructure and connectivity. The competitive market and crowded market space drives companies to innovate but financial inclusion stays restricted because many people lack digital skills and do not own smartphones. The FinTech sector in Egypt requires specialized legal advice to achieve both secure development and sustainable expansion according to these identified obstacles.
5. Role of Specialized Fintech Law Firms
law firm fintech often involve various regulatory, commercial, and technical risks that need specialized legal knowledge. A fintech law firm helps businesses deal with these challenges and translate legal obligations into actionable steps.
Common areas where legal support is crucial include:
- Establishing a Fintech company in Egypt: selecting the right corporate structure, drafting articles of association, and completing required registration procedures.
- Licensing and regulatory sandbox applications: preparing documentation and developing a regulatory strategy for obtaining licenses as payment service providers and payment system operators or for participating in regulatory sandboxes.
- Partnerships with banks, PSPs, or telecom operators: negotiating agreements related to application programming interfaces, system integrations, service levels, and liability allocation.
- Compliance with AML and CFT requirements: designing and implementing KYC, transaction monitoring, and reporting systems according to Egyptian regulations.
- Data protection and privacy: drafting privacy policies, data processing agreements, and ensuring compliance with Egypt’s data protection rules for local and cross-border data transfers.
- Fundraising and investor relations: preparing term sheets, shareholders’ agreements, and overseeing securities law aspects of capital raising.
- Intellectual property and software licensing: protecting proprietary technology, trademarks, and ensuring solid licensing arrangements.
- Regulatory investigations and disputes: assisting with regulator inquiries, administrative actions, or related litigation.
- Employment and contractor arrangements: structuring employment contracts, equity incentive plans, and secondment agreements for developers and compliance personnel.
6. Shehata & Partners has gained expertise through its work in Fintech and Digital Banking.
Shehata & Partners, a leading fintech law firm, provides advanced legal guidance to companies that function between financial operations and technological systems. Financial services face obstacles when technology transforms the legal and commercial environment. Our team provides Fintech sector expertise through its deep legal knowledge and complete understanding of the Fintech ecosystem to serve various clients including investors and financial institutions and technology providers and start-ups who need guidance through the complex regulatory and commercial aspects of this fast-changing sector.
7. The Future of Fintech Regulation in Egypt
The Fintech sector in Egypt demonstrates strong growth potential because of major regulatory and institutional developments, which point to an ongoing digital transformation. One of the most important developments was the CBE’s approval of Onebank, which became the first digital bank in the country. Originally established in 2020 as Egypt Digital Innovation with full backing from Banque Misr, this entity was the first of its kind dedicated entirely to financial technology. The upcoming 2026 launch of Onebank will enable Egypt to start digital-only banking services.
The CBE introduced Payment System Operator (PSO) and Payment Service Provider (PSP) licensing and registration rules through a major development that occurred in June 2025. These regulations give practical effect to the provisions of the Banking Law No. 194 of 2020 to establish a clear and open system for digital payment operations. The new regulations follow the Payment Systems and Services Oversight Policy which the CBE introduced in March 2024 to establish a digital finance system that is both secure and efficient and promotes innovation.
Conclusion About Fintech Industry Law Firms
Being a top specialized Fintech law firm in Egypt, Shehata & Partners, a leading fintech law firm, maintains its position to assist Fintech businesses through the ongoing development of the law firm fintech sector. The company assists clients in discovering new business opportunities through their financial regulation and technology and corporate advisory expertise for complete legal compliance. Shehata & Partners delivers strategic legal guidance to help clients navigate the developing regulatory framework and increasing investor interest, which drives digital finance innovation while controlling risks for both traditional financial institutions and new start-ups in Egypt.
