Country _ Name
Crowdfunding / crowdinvesting / crowdlending
FinTechs belonging to this category operate crowdfunding, crowdinvesting and crowdlending platforms on which money is raised to invest in various projects, mainly start-up companies and real estate projects.

Crowdfunding is not a defined financial service, but generally used to describe donation-based crowdfunding (the investor donates the money to the project), reward-based crowdfunding (the investor receives an often symbolic consideration for his investment), equity-based crowdfunding (crowdinvesting: the investor participates in the profits of the financed project or acquires shares or debt instruments) or lending-based crowdfunding (crowdlending: the investor is reimbursed at the end of the project with or without interest).


Attitude of the country towards crowdfunding, crowdinvesting and crowdlending platforms

The social and political climate towards crowdfunding in Egypt is neutral; it is not negative nor positive. Crowdfunding companies caught the attention of Financial Regulatory Authority (FRA) after the spread of this activity over the years in Egypt. Crowdfunding was able to attract many seekers of new investment opportunities, especially in light of its spread in some markets, and money is collected and employed, through websites. A controversy began about the legality of these activities in Egypt and whether they are subject to control or a ploy to collect money.

The crowd funding activity in Egypt is against the law, and the authority did not authorise it since the Egyptian society does not adapt such activity.

However, crowdfunding companies work in Egypt within a legal structure and the companies don't see any illegality when it comes to their activity.

FRA insists that companies wishing to work in such activity shall comply with the rules and procedures mentioned in law no 146 of year 1988 regarding companies receiving money for investment. This law stated that only joint stock companies which listed their stock for public trade can receive investment from the public. Also, these companies are prohibited from using any private or public method to influence the public to trade or invest in them.

It is also prohibited for other companies to invite the public by any direct or indirect means for initial public offering or to collect these funds for employment, investment, or participation in them.

Crowdfunding companies in Egypt are still active in Egypt and it is getting wildly popular since the widespread Start-up culture in Egypt.

Legal affairs

Obligations and requirements to provide crowdfunding, crowdinvesting and crowdlending platforms described above

At the time of writing, there are no laws or regulations governing companies who works in Crowdfunding. There is no legal framework for these type of activities in Egypt. However, there is a bright side since the FRA and CBE decided to coordinate during the coming period to prepare new legislation related only to crowdfunding in order to regulate their activity in Egypt and to put guidelines for the companies to obtain a licence in this regard.

Additional comments regarding the legal situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area

Until the FRA and CBE issue the legislation regarding Crowdfunding companies, the companies practising such activities shall comply with AML rules set out by the CBE and FRA in order to secure the whole process of funding.

Economic conditions

Market size for crowdfunding, crowdinvesting and crowdlending platforms and biggest companies in this business area

The CBE and FRA don't have a comprehensive number of crowdf
unding companies operating in Egypt due to the lack of license to practise such activity. The following companies can be considered to be well-known ones when it comes to crowdfunding: 

  • Kickstarter; and
  • Sherka.

Additional comments regarding the economic situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area




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