As Egypt continues to position itself as a regional hub for digital innovation and entrepreneurship, the regulatory framework governing technology companies has become increasingly significant. Startups and established tech firms alike must navigate a complex mix of laws that impact their operations, data handling, digital services, and investment structures. This article outlines the key legal and regulatory considerations for technology companies operating in Egypt.
1. Establishment and Licensing
Technology companies in Egypt are primarily governed by the Companies Law No. 159 of 1981, along with its executive regulations. For startups and SMEs, the Investment Law No. 72 of 2017 provides additional incentives and streamlined procedures, especially for businesses operating in designated free zones and technological parks.
Key bodies involved in company registration include:
- General Authority for Investment and Free Zones (GAFI)
- Egyptian Financial Regulatory Authority (FRA) for fintech and digital finance entities
- Information Technology Industry Development Agency (ITIDA), which supports tech companies and startups
2. Data Protection and Privacy
One of the most important recent developments is Law No. 151 of 2020 – the Personal Data Protection Law (PDPL), which sets out comprehensive rules on the collection, processing, and storage of personal data.
Under the PDPL:
- Companies must obtain consent before collecting personal data.
- Cross-border data transfers are subject to specific safeguards.
- Data controllers and processors must register with the Data Protection Center, which is under the Ministry of Communications and Information Technology.
Non-compliance can result in significant penalties, including fines and potential criminal liability.
3. E-Commerce and Consumer Protection
Technology companies engaged in online sales and digital services must comply with:
- E-Commerce Law (under development) – While Egypt does not yet have a standalone e-commerce law, various regulations apply, including consumer protection provisions under Law No. 181 of 2018 (Consumer Protection Law).
- Electronic Signature Law No. 15 of 2004 – Governs electronic transactions and the legality of digital contracts, overseen by ITIDA’s root certification authority.
Companies must ensure transparent terms of service, clear refund and return policies, and secure online payment systems.
4. Cybersecurity and Digital Crime
Cybersecurity is increasingly regulated under:
- Cybercrime Law No. 175 of 2018 (Combating Information Technology Crimes Law)
This law penalizes unauthorized access to IT systems, data breaches, online fraud, and content-related offenses. It also grants authorities the right to request access to data and block certain websites.
Technology companies, particularly platforms and hosting providers, must implement strong internal security protocols and cooperate with state authorities in certain investigations.
5. Fintech and Digital Payments
For fintech startups, the Central Bank of Egypt (CBE) plays a critical role. The Banking and Central Bank Law No. 194 of 2020 regulates digital banking services, e-wallets, and payment service providers (PSPs).
The CBE has also launched initiatives to encourage innovation, such as:
- Regulatory Sandboxes
- Licensing regimes for non-banking financial services and mobile payments
Startups must secure approvals before offering digital financial solutions and comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.
6. Intellectual Property Protection
Protecting software, platforms, and digital products requires attention to Egypt’s IP framework, including:
- Intellectual Property Law No. 82 of 2002
- Registration of copyrights, trademarks, and patents through the Egyptian Patent Office and Commercial Registration Authority
Software can be protected as literary work, but companies should also consider registering their trademarks to protect brand identity.
Final Thoughts
Egypt’s legal environment for technology companies is evolving rapidly, with new frameworks supporting growth, innovation, and investor confidence. However, regulatory compliance remains essential. Companies—whether local startups or international investors—must stay informed and consult legal professionals to navigate licensing, data protection, fintech regulations, and cybersecurity obligations.
As the digital economy expands, a sound legal strategy will be as crucial as technical innovation in sustaining success.