EGYPT Trends and Developments Contributed by: Mohamed Hashish, Farida Rezk, Omar Aboul-Ella and Mariam Rabie, Soliman, Hashish & Partners
The Data Protection Law applies to any con - troller, processor or handler (natural or juristic) of personal data. It also applies to any of the aforementioned persons who breach the Data Protection Law if they are: • an Egyptian national inside or outside Egypt; • a non-Egyptian residing within Egypt; or • a non-Egyptian outside Egypt, if the act is punishable in any form in the country where it occurred and the data subject who is affected by the breach is an Egyptian national or a non-Egyptian residing in Egypt. The Data Protection Law sets out the require - ments relating to processing, handling and con - trolling any personal data, which in principle are primarily based on the element of consent of the data subject and licensing from the Data Protection Centre. The Data Protection Centre is the regulatory authority overseeing the appli - cation and enforceability of the Data Protection Law. Also, the Data Protection Law regulates the transfer of personal data abroad and sets out certain conditions and standards for allowing the transfer of personal data outside of Egypt. However, the Data Protection Centre has not yet been established at time of writing, and the regulations regarding the issuance of the said licences are subject to the issuance of the Exec - utive Regulations. Banking, Finance and Exchange Control The Egyptian pound underwent various devalu - ations throughout 2022 in order to secure IMF loans. Despite the fact that investors are freely allowed by law and the relevant and applicable bilateral investment treaty to transfer proceeds and divi - dends to their home country, the current short - age and unavailability of foreign currency in
Egypt has made it difficult for investors to trans - fer such proceeds and dividends to their home country, and therefore, most foreign investors secure their own source of foreign currency, as each bank is currently applying a list of priorities for exchanging Egyptian pounds with any foreign currency, which differs from one bank to the oth - er. However, it is worth noting that these restric - tions were relaxed significantly in 2024, allowing foreign investors to secure foreign currency. Imports In December 2022, the CBE abolished the sys - tem of requiring importers to obtain letters of credit for their purchases and returned to the CashAgainstDocuments system for importing goods. This change alleviates the previously higher costs and time burdens on importers. It is also worth noting that in 2023, by virtue of Law No 173 of 2023, the foreign ownership restriction on importation was lifted, permitting limited liability companies 51% of the quotas of which are owned by non-Egyptians partners to register in the Importers’ Registry, provided that the total duration of registration does not exceed ten years from the date of entry into force of the said law. This duration may be extended for one additional period not exceeding ten years by a decision from the Council of Ministers. In conclusion, various legal developments have taken place across different regulations and sectors in Egypt. These measures reflect the Egyptian government’s aim not only to foster a stable and well-regulated economy for Egyp - tians but also to promote FDI in Egypt. Reports indicate that further changes are anticipated in the coming years, including the introduction of new labour and arbitration laws.
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