Fintech 2025

EGYPT Law and Practice Contributed by: Ibrahim Shehata, Hesham Kamel, Mohamed Abed and Hamza Shehata, Shehata & Partners Law Firm

• defining and categorising AI according to its learning method (supervised or unsu - pervised), model (neural networks, decision trees, deep learning, etc) and capacities; • organising permits and licences based on the degree of risk associated with the AI, follow - ing a model similar to the draft EU AI Act; and • establishing legal liability for AI, in both civil and criminal domains. Although the study does not analyse the draft law that is currently under preparation, it is note - worthy that the IDSC, given its direct affiliation with the Cabinet, could be reflecting the current public policy trends of the Egyptian government. Moreover, the potential impact of the draft law on fintech activities is not clear. On a final note, the Financial Regulatory Author - ity (FRA) recently issued Decree No 57 of 2024, establishing the first-ever regulations for robo- advisers for investment in Egypt. This electronic system uses AI algorithms to provide financial advice and create and manage investment port - folios, and rebalance them as needed. Integration of AI in Fintech Products and Services The integration of AI in fintech has become increasingly prevalent globally, and Egypt is no exception. While the use of AI in fintech products and services is still under development, there are currently no legal prohibitions preventing fintech companies from leveraging AI technologies. This regulatory gap provides fintech businesses with an opportunity to innovate and capitalise on AI’s transformative potential, meeting the needs of an increasingly tech-savvy population. The Egyptian fintech landscape boomed in 2024 and continues to thrive in 2025, driven by a tech-savvy population, supportive government

policies and a growing demand for innovative financial solutions. Key aspects of this growth include the following. • Increasing financial inclusion: fintech start- ups are playing a crucial role in bringing financial services to the unbanked and under - banked population in Egypt. Mobile wallets, microloans and alternative credit scoring methodologies are making it easier for indi - viduals without traditional bank accounts to access financial products and services. • Rise of digital investments: Egyptians are increasingly interested in investing their money online. Robo-advisers, micro-investing platforms and fractional ownership solutions are making it easier and more affordable for Egyptians to invest in stocks, bonds and other assets through online platforms. • Evolving payments landscape: while cash remains predominant in Egypt, cashless pay - ments are gaining traction. Mobile wallets, QR code payments, the entry of Apple Pay and Google Pay, and contactless cards are becoming more popular due to the conveni - ence and security they offer. • Advancing legislative framework: efforts are underway to establish comprehensive laws and additional regulations that align with the market’s rapid evolution and emerging chal - lenges. This includes the introduction of a bill on AI governance to enhance investment attractiveness. The fintech sector continues to face challeng - es similar to those observed last year. These include public awareness, regulatory gaps and the pending issuance of the executive regula - tions for the Egyptian Data Protection Law No 151 of 2020 (DPL) and the establishment of the Data Protection Centre (DPC).

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