Ragy Soliman, Managing Partner, Co-Head of M&A and Capital Markets, shares insights on the growing demand for cost transparency in legal services across Africa, as featured in a recent IFLR report.
Read how ADSERO and other legal experts are addressing this critical need in the region in the publication below.
Introduction:
On 9 February, Egypt introduced new amendments to key maritime laws through the enactment of Law No. 2, Law No. 3, and Law No. 4 of 2025, impacting ship safety, maritime trade, and vessel registration. These amendments aim to enhance regulatory oversight, streamline registration processes, and enforce stricter compliance standards for vessels operating under the Egyptian flag.
Key Amendments:
1. Law No. 2 of 2025: Amendments to the Ship Safety Law (Law No. 232 of 1989)
2. Law No. 3 of 2025: Amendments to the Maritime Trade Law (Law No. 8 of 1990)
3. Law No. 4 of 2025: Amendments to the Ship Registration Law (Law No. 84 of 1949)
If you have any questions, please do not hesitate to contact our team members, Hossam Gramon, Partner, Head of Banking & Project Finance, and Laila Shoukry, Managing Associate.
Introduction:
In alignment with recent presidential directives aimed at enhancing social justice and improving the standard of living for Egyptian citizens, the National Wages Council (“NWC”) convened on Sunday, 9 February 2025, to discuss raising the private sector’s minimum wage and determining the statutory annual increment percentage for 2025.
The meeting was attended by key government officials, including the Minister of Supply and Internal Trade, the Minister of Social Solidarity, the Minister of the Public Business Sector, the Minister of Labour, the Chairman of the National Council for Women, the Chairman of the Central Agency for Public Mobilization and Statistics, the Chairman of the Central Agency for Organization and Administration, the Director of the Labour Market Policies Unit at the Ministry of Planning, Economic Development, and International Cooperation, the Advisor to the NWC, and the Legal Counsel of the NWC.
Overview:
In response to recent presidential directives focused on social justice and improved living standards, the NWC has approved an increase in the private sector minimum wage. Accordingly, the NWC has decided to raise the minimum wage for private sector employees to EGP 7,000 (seven thousand Egyptian pounds), up from EGP 6,000 (six thousand Egyptian pounds), effective 1 March 2025, formalised under Ministerial Decree No. 15 of 2025.
Additionally, the NWC has set the minimum statutory annual increment for private sector employees at 3% of their social insurance subscription wage, with a minimum of EGP 250 (two hundred and fifty Egyptian pounds) for the 2025 fiscal year, instead of EGP 200 (two hundred Egyptian pounds) as per the most recent decree for 2024.
Furthermore, for the first time, the NWC has introduced a minimum hourly wage for employees working in temporary jobs, setting the net base rate at EGP 28 per hour.
Concerned Entities:
If you have any questions, please do not hesitate to contact our team members, Alia Monieb, Partner, Head of Employment, and Nada Khaled, Senior Associate.
We are delighted to share our recent contribution to the third edition of The Legal Industry Reviews (LIR) in Egypt.
In our chapter, "Modernising Egypt’s Digital Framework: New Decrees on E-Signatures and Registered Email Services," we explore two key MCIT regulations: the Postal Decree No. 250 of 2024 and the E-Signature Decree No. 467 of 2024. These regulations advance the legal framework for electronic transactions, enhancing the integrity, authenticity, and legal validity of digital communications while addressing challenges posed by overlapping authorities.
This article is authored by Darah Zakaria, Counsel, Aya Yassin, Senior Associate, and Hana Ayman, Junior Associate.
To read our contribution, click here (pages 48-49).
We advised the sellers, Ayady Egypt for Investment & Development (Ayady), NI Capital Holding for Financial Investments (NI Capital), and Post For Investment (PFI), on the divestment of Tamweely Microfinance (Tamweely), Egypt’s leading microfinance provider, in a landmark deal exceeding EGP 2.5 billion by a consortium of investors, including SPE Capital , European Bank for Reconstruction and Development (EBRD), Tanmiya Capital Ventures (TCV), and British International Investment (BII) and the transaction was successfully closed on 31 December 2024.
This acquisition highlights international confidence in Egypt’s non-banking financial sector, promoting financial inclusion by enabling Tamweely to expand its services to underserved populations. It also marks a strategic exit for government entities, aligning with Egypt's policy to encourage private sector growth. With strong global backing, Tamweely is set for continued expansion, supporting MSMEs across the country.
Our team was led by partners Ahmed Abdelgawad and Ibrahim ElGengehy; Ibrahim El Messery, Counsel; and Soha Hussein, Associate; Youssef Abelkader, Junior Associate.
Congratulations to Mohamed Metwally, Chief Executive Officer at NI Capital; Hazem Kamel, Managing Director - Private Equity at NI Capital; Soliman S. AlTayyar, Vice President - Private Equity & Venture Capital at NI Capital; and Sandra Wadei, Senior Investment Analyst at NI Capital. We also extend our congratulations to Ayady, PFI, and Tamweely.
We are pleased to have worked alongside our colleagues Ahmed Eloraby, partner at SPE, and Farida Abaza, Associate at SPE, as well as Hani Nassef, parner at Helmy, Hamza & Partners - Baker McKenzie; Bassem Abdelrahman, Counsel at Helmy, Hamza, & Partners - Baker Mckenzie; and Hayna Abdelrahim, Associate at Helmy, Hamza, & Partners - Baker Mckenzie; and our colleagues at A&O Shearman, English Counsel to the sellers, on this groundbreaking deal.
For more information, check out Amwal Al Ghad - اموال الغد's coverage here and the Ministry of International Cooperation's coverage here.
Key Highlights:
The Egyptian government has introduced a draft law titled the "Medical Liability and Patient Protection Law." This significant legislative development aims to regulate medical liability, ensure patient protection, and uphold ethical standards within the healthcare sector. The proposed legislation is subject to public consultations and parliamentary discussions before being enacted.
Scope and Objectives:
Key Provisions:
Impact on Healthcare Providers:
The draft law introduces a structured and comprehensive framework that could significantly impact healthcare providers, including clinics, hospitals, and individual practitioners. At its core, the law aims to protect medical professionals from unwarranted litigation by establishing impartial committees to review claims of medical malpractice. This process seeks to reduce the risk of frivolous lawsuits, providing healthcare providers with a fair platform to defend their actions based on expert evaluations.
However, the law also imposes stringent compliance requirements, such as the mandatory maintenance of detailed and accurate medical records for each patient, the adoption of standardised protocols for medical procedures, and the securing of malpractice insurance coverage. These measures are designed to enhance patient safety and accountability but may result in increased administrative and financial burdens for healthcare providers. For smaller clinics and individual practitioners, the costs associated with insurance premiums and compliance upgrades could be particularly challenging.
Additionally, the law’s compensation mechanisms for proven cases of negligence may necessitate healthcare providers to re-evaluate their risk management practices. Providers will need to adopt proactive measures, such as regular staff training, updated medical equipment, and adherence to stringent clinical guidelines, to minimise the risk of liability. Non-compliance or failure to meet these obligations could expose providers to reputational risks, financial penalties, or even operational constraints.
In light of these changes, healthcare providers are encouraged to undertake a thorough review of their current practices and identify areas requiring alignment with the proposed regulations. By doing so, providers can ensure smoother compliance with the law while safeguarding their patients and professional standing in an evolving legal landscape.
Next Steps:
The draft law will undergo public consultations to incorporate feedback from stakeholders, including medical professionals, patient advocacy groups, and legal experts. Following this, it will be presented to Parliament for further deliberation and possible enactment.
ADSERO will closely monitor the progress of this legislation and provide updates on its impact on healthcare providers and patients alike.
If you have questions regarding the draft law or its potential implications for your organisation, please do not hesitate to contact our team members, Mohamed Fathy, Partner and Head of Real Estate, Tourism and Life Sciences; and Fadila Abdelaziz, Counsel.
We are pleased to announce the conclusion of our 4th Writing Competition, covering Real Estate Investment Trusts (REITs) in Egypt. It was a pleasure to host seven teams from universities, including Ain Shams University, Mansoura University, Cairo University, Assiut University, The German University in Cairo, Benha University, and Helwan University Cairo, as they presented their work.
Congratulations to the top three winners:
- 1st place: Alaa El-Mackshen, Mahmoud Mostafa Kamel, and Sama Zaher from Mansoura University.
- 2nd place: Aya Hammouda from Ain Shams University.
- 3rd place: Faris Alaa Araby from Assiut University.
We thank all the students who submitted their articles and look forward to seeing more of their work in the future.
A special thank you to our team members who served as organisers and panellists:
- Dr. Radwa Magdi Shaker, Of Counsel.
- Mennatullah Sultan, Senior Associate.
- Hana Aboalam, Junior Associate.
- Heba Aboslima, Junior Associate.
- Omar Mohamed Moanes, Junior Associate.
- Noha Abdullatif, HR Manager.
To read their articles, click here:
I. Introduction
ADSERO was able to obtain the latest draft of the labour law, which is currently being presented and reviewed by the Prime Minister. This latest version includes the suggested revisions that have been concluded following several discussions during the social dialogue within the Parliament over the past months. The issuance of the new labour law will mark a significant step for Egypt, addressing current challenges in the labour system and improving the balance between employees’ rights and employers’ needs, while aligning it with international best practices.
As the draft moves closer to potential issuance, we note that it is crucial for employers to understand the key provisions of the draft labour law and how these changes may impact day-to-day business operations and workplace practices. Throughout this client alert, we will provide an overview of the key changes in the latest version of the draft.
II. Overview
This alert provides a concise overview of the key revisions introduced in the draft of the new labour law, which is set to fully replace the current labour law no. 12 of 2003 (the “Draft Law”). It also highlights the significant changes made in the last two versions, which were previously addressed in our earlier alerts. For your reference, please find the relevant links below:
III. Key Changes to the Latest Version
A. Maternity Leave:
B. Child Care Leave:
Limit on the Number of Times of Childcare Leave: The duration of childcare leave has been reduced to two (2) times instead of three (3) in response to the request of the National Council for Women and in alignment with the revised maternity leave entitlement. We also note the conflict with the Child Law that entitles female employees to benefit from the child care leave three (3) times during their service.
C. New Resignation Timelines:
D. Employee’s File:
The Draft Law has added a new document to be kept in the file, which proves that the employee is socially insured before the National Organisation for Social Insurance (i.e., either Form No. 1 social insurance or an extract of a social insurance print evidencing the same). The Draft Law stipulates that this file can now be maintained in hard copies or electronically.
E. Disabled Employee's Annual Leave:
Under the Draft Law, disabled employees are entitled to forty-five (45) days of annual leave. This entitlement exceeds the standard annual leave period for other employees, which is only twenty-one (21) days, reflecting recognition of the specific needs of disabled individuals.
IV. New Provisions in the Latest Version
A. Combating Workplace Harassment:
In response to the International Labour Organisation’s (ILO) comments, a new provision has been incorporated into the Draft Law to address workplace harassment, including a clear definition of sexual harassment. The new provisions require employers to ensure a safe and non-hostile work environment free from harassment and violence. Employers are also obligated to implement measures to prevent harassment and promote workplace safety.
Furthermore, the Minister of Labour will issue a decree outlining all forms of harassment and violence in the workplace, methods of prevention, and templates for codes of sound professional conduct.
It is worth noting that the definition of harassment introduced in the Draft Law differs from that in the Egyptian Penal Code. The Draft Law adopts a broader definition of sexual harassment, encompassing any physical, verbal, or non-verbal behaviour of a sexual or gender-based nature that undermines dignity, without specifying the context or methods involved.
In contrast, the definition in the Egyptian Penal Code is more specific, detailing actions, methods (such as signals, words, and electronic communication), locations (including public and private spaces), and the intent to seek a sexual benefit. This makes the Penal Code’s definition more situational and concrete.
B. Child Labour:
Under the draft, a new article was added stipulating that children must not be employed in jobs, professions, or industries that:
This provision was added to align with the worst forms of child labour as defined in the ILO Convention No. 182 of 1999, given that Egypt is a member of that convention.
C. New Work Patterns:
A new chapter under the Draft Law has been added to define and regulate Non-Traditional Work patterns, providing flexibility in employment arrangements. Non-Traditional Work is now defined as “any type of work performed in a manner outside the conventional setup, regardless of the method or form of implementation. It is undertaken for the benefit of an employer, under their management or supervision, in return for a wage of any kind”.
The Draft Law has listed examples of what is considered Non-Traditional Work:
The employment relationship under new work patterns must be clearly defined and formalised in a written employment contract, either in paper or electronic form. Under the Draft Law, employees are now permitted to work for multiple employers, provided this arrangement is mutually agreed upon. However, employees are strictly prohibited from disclosing any confidential information related to their employers and are not allowed to engage in independent work or operate their businesses.
This new chapter highlights an acknowledgement of shifting work dynamics and aims to accommodate and support diverse employment formats.
Part 1: Overview of the Law
Highlights
On 9 July 2024, law no. 155 of 2024, which issues the Unified Insurance Law (the “Law”), was enacted. This landmark legislation represents a comprehensive overhaul of Egypt’s insurance regulatory framework by consolidating and codifying existing regulations into a single comprehensive legislation. As a result, several related laws were repealed as of 10 July 2024, including:
Scope of Application
The Law governs all insurance and reinsurance activities, along with associated services, professions, and activities within Egypt. It stipulates that companies subject to the Law must be established as Egyptian joint-stock companies. The Financial Regulatory Authority (“FRA”) is granted exclusive authority to license, supervise, and regulate entities involved in these activities.
FRA Powers and Competencies
The Law provides the restructure of the FRA’s role in response to global and regional insurance market changes. It mandates the FRA to regulate and supervise all insurance and reinsurance activities, as well as their associated professions and services.
Key competencies of the FRA include, but are not limited to:
The Law imposes a new obligation on insurance companies to maintain the confidentiality of clients’ data, prohibiting the disclosure of such data without obtaining prior written consent, except where required by legislation.
It should be noted that the Law prohibits any individual or entity from engaging in insurance activities, directly or indirectly, without obtaining a license from the FRA.
Compliance Period
The Law provides a one (1) year compliance period from its effective date, which is on 11 July 2024, i.e. until 10 July 2025, for entities to comply with its provisions. The FRA may extend this period for additional terms, not exceeding three (3) years.
The Law unifies existing insurance-related legislations, simplifying the regulatory landscape for companies in the insurance sector. Accordingly, it aims to:
Dispute Resolution and Appeals
The Law stipulates that most insurance disputes will fall under the jurisdiction of the Egyptian Economic Courts (“ECC”), with certain exceptions adjudicated by the Council of State to expedite resolution. It establishes new Appeals Committees (the “Committee”) to handle appeals against administrative decisions made by the FRA, ensuring transparency in the enforcement of the Law. The composition of the Committee and the appeal process are defined by the Law. It should be noted that appeals must be filed within 30 (thirty) days of the decision’s issuance, and the Committee is required to issue a decision within 30 (thirty) days of receiving all relevant documents. The Committee’s decisions are final and binding. An appeal fee of twenty thousand Egyptian Pounds (EGP 20,000) shall be imposed, which is refundable if the decision is overturned.
Penalties
The Law introduces a range of penalties, in Articles 215-225, for violations related to insurance and reinsurance activities. These include fines ranging from one thousand to twenty million Egyptian Pounds (EGP 1,000 to 20,000,000), with the possibility of higher fines if the financial benefit from the violation exceeds these amounts. In certain cases, imprisonment may also be imposed.
Additionally, the court may prohibit individuals from engaging in insurance or reinsurance activities for up to three (3) years. Moreover, the concept of marginal responsibility is introduced, holding individuals managing companies accountable if they are aware of violations and fail to act. Companies are jointly and severally liable for any penalties or compensation arising from employees’ misconduct.
Major Violations
The Law provides several key violations, which include:
We are delighted to announce that ADSERO - Ragy Soliman has been included in the International Employment Lawyer (IEL) Elite Guide 2025, a prestigious guide to the world’s leading employment law practices. This recognition highlights our commitment to providing innovative and high-value legal advice to employers across the globe.
A special thank you to our dedicated team for their hard work and to our clients for their continued support and positive feedback. We are proud to be recognised among the top employment law teams, showcasing our expertise in advisory, disputes, and transactional work.
To learn more about the IEL Elite and view the full list, click here.
If you have any questions, please feel free to contact Alia Monieb, Partner and Head of Employment.
We advised Sylndr Egypt, an Egyptian used-car online marketplace, on securing an EGP 370 million working capital facility from a group of lenders, which consisted of EFG Corp-Solutions — the leasing and factoring arm of EFG Holding — alongside EFG Holding’s commercial bank Bank NXT, and EGBANK.
This transaction sets a new standard for scalable, ring-fenced capital financing specifically tailored for Sylndr’s highly complex legal and financial framework that acts as a base for any new lender to scale up the structured facility.
Our team was led by Hossam Gramon, Partner and Head of Banking & Project Finance, and Karima Seyam, Senior Associate, assisted by Aya Badr, Associate, and Junior Associates Mostafa Serry and Nour El Kholy.
Congratulations to Omar El Defrawy, Omar Ezzat, and Amal Fathy of Sylndr.
Pleased to have worked alongside our colleagues, Amira Sherif of Sarie Eldin & Partners Legal Advisors, Talal Elayat, Maie Hamdy, and Marwan El Didi of EFG Holding, Amr Khaled of Bank NXT, and Karim Shabana of EG Bank.
For more information, check out Enterprise’s coverage here.
We advised Ezdehar Management (Ezdehar), an Egypt-based private equity firm, on the full acquisition of Zahran Market after purchasing the remaining 40% stake.
This deal marks the completion of a two-year collaboration with the Zahran family, focusing on modernising operations and enhancing management systems, highlighting Ezdehar’s commitment to Egypt’s retail sector.
Our team was led by Ragy Soliman, Managing Partner and Co-Head of M&A and Capital Markets, Dina Sherif, Counsel, and Yomna Taha, Managing Associate.
Congratulations to Amir Mishriky, Amr ElSalanekly, and Diyar Hozaien of Ezdehar.
Pleased to have worked alongside our colleagues Saifallah Kadry and Ali Abu Zeid at Matouk Bassiouny, legal advisors to Zahran Market, and Ahmed Hussein at Compass Capital, the financial advisors to Zahran Market.
For more information, check out Enterprise’s coverage here.
We are pleased to share our latest report highlighting the laws and decrees issued in the third quarter of 2024.
To access the report, click on the attachment below.
If you are interested in acquiring a copy of the legislation and keen on remaining up to date with the most recent laws and decrees, sign up here.
We are pleased to share ADSERO’s contribution to the newly updated International Employment Lawyer’s Guide to Whistleblowing. As organisations navigate an evolving legislative landscape focused on accountability, this guide addresses key challenges in protecting individuals who report corporate misconduct.
Contributed by Alia Monieb, Partner and Head of Employment; Nada Khaled, Managing Associate; Hoda Khira, Junior Associate; and Khaled Omar, Junior Associate, the Egyptian law chapter offers practical insights into compliance requirements, reporting mechanisms, and the legal protections available for whistleblowers, helping employers effectively manage associated risks.
Explore the guide and learn more about whistleblowing protections across various jurisdictions here.
Overview
In the complex landscape of Egyptian business law, the concept of fully functional joint ventures (“JV”) plays a crucial role in determining the application of merger control regimes. This article explores the essential criteria for assessing fully functional JVs and their implications for businesses operating in Egypt.
Understanding Fully Functional JVs
A fully functional JV is an entity that operates autonomously on a lasting basis, performing all the functions typically associated with independent businesses in its market. The Egyptian Competition Authority (the “ECA”) and the European Commission (the “EC”) provide guidance on assessing these JVs, which is particularly relevant in the context of Egypt’s evolving business environment.
Key Assessment Criteria
Joint Control
For a JV to be considered fully functional, it must be jointly controlled by 2 (two) or more entities. This control can result from either the establishment of a new entity or the acquisition of an existing one.
Operational Independence
A crucial aspect of fully functional JVs is their ability to operate independently in the market. This requires:
Interestingly, the EC allows for some flexibility in staffing arrangements. Personnel may be procured from third parties or seconded from parent companies, provided this aligns with industry standards or is limited to a start-up period.
Beyond Auxiliary Functions
To be considered fully functional, a JV must perform activities beyond mere auxiliary functions for its parent companies. It should have its own presence and purpose in the market, rather than simply supporting its parents’ operations.
Commercial Relationships with Parents
The JV’s relationship with its parent companies is a critical factor in assessing its functionality. While some level of interaction is expected, the JV should maintain a degree of independence:
Lasting Operations
The ECA presumes that a JV operates on a lasting basis if its duration is not predetermined. However, if a specific duration is set, it must be sufficient given the nature of the market. Additionally, the EC notes that JVs established for short-term, specific projects may not meet this criterion.
Implications for Businesses
Understanding these criteria is crucial for businesses considering JVs in Egypt. Fully functional JVs may trigger merger control notifications, while changes in a JV’s activities could be considered a new concentration requiring fresh assessment. As Egypt continues to attract foreign investment and local businesses expand, the proper structuring of JVs becomes increasingly important. Companies must carefully consider these factors to ensure compliance with competition law and to maximise the strategic benefits of their JV.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of ADSERO. This article is for general information purposes only and is not intended to be and should not be taken as legal advice. Readers should consult with a qualified attorney for specific legal guidance. ADSERO does not guarantee or warrant the accuracy, completeness, or adequacy of the information presented and assumes no liability or responsibility for any errors or omissions in the content.
