EGYPT Law and Practice Contributed by: Arig Ali and Lana Abd El-Rassoul, Zaki Hashem, Attorneys at Law
In addition to the above, globally, appetite for marketplace acquisitions has shown signs of moderating. Despite this, Egypt’s VC landscape has seen noteworthy activity in the marketplace segment, with two acquisitions standing out. In February 2025, UAE-based Dubizzle Group acquired Hatla2ee, Egypt’s leading online auto - motive marketplace. Similarly, in late 2021, South Africa’s SweepSouth acquired FilKhedma, a home services marketplace operating across major Egyptian cities. While two transactions alone may not necessarily establish a definitive trend, their significance in Egypt’s VC landscape cannot be overlooked. In terms of exit dynamics, based on general observation of the market, sectors such as logis - tics and fintech (e-payments) tend to offer clearer acquisition pathways and have seen more exits, while edtech, fintech (BNPL) and biotech contin - ue to attract new funding rounds, reflecting long- term growth expectations – even if exit timelines may extend further into the future. While this perspective reflects practical market experience, more detailed research by financial analysts and sector-focused institutions could offer a deeper understanding of underlying trends and invest - ment patterns.
(FRA). They must be established as Joint Stock Companies (JSCs) or Companies Limited by Shares (CLSs). The law defines VC activities as providing financing, technical assistance, or participating in high-risk or underfunded projects, typically aiming to transform these projects into JSCs or CLSs. Companies wishing to conduct VC activi - ties must obtain a licence from the FRA and be registered in the official VC Companies Register. Over time, Egypt has introduced new structures to align with international fund models. In 2007, the closed-ended direct investment fund struc - ture known as the Private Ownership Fund (POF) was introduced. This fund invests in listed and unlisted securities and can carry out VC activi - ties. Despite being available for over a decade, to the best of our knowledge, only two such funds, Sawari Ventures Fund and Catalyst Fund, have been set up by the private sector. In response to repeated demand among industry players for globally familiar structures, Ministerial Decree No. 113 of 2018, as amended (Decree 2018), authorised the use of CLSs for conduct - ing private equity – and potentially VC – activi - ties. The model resembles the international GP/ LP structure, where the general partner (the GP) manages the fund and limited partners (the LPs) provide capital. While JSCs were added as an eligible legal form in 2022, no JSC has been licensed yet under this regime. To date, only a couple of GP/LPs – such as Avanz Capital – have received licences. In addition to the above-mentioned formal ven - ture capital structures regulated under the Capi - tal Market Law, industry players may conduct VC activities through holding companies or ordinary companies established under Companies Law
2. Venture Capital Funds 2.1 Fund Structure VC Activities Legal Forms
VC activities in Egypt have been regulated under Capital Market Law No 95 since 1992. Based on this law, companies conducting VC activities are classified as Companies Operating in the Field of Securities (COSF) and fall under the catego - ry of Non-Banking Financial Services (NBFS), supervised by the Financial Regulatory Authority
169 CHAMBERS.COM
Powered by FlippingBook