Egypt's New Financial Leasing Law

In light of Egypt's relentless pursuit of a prosperous economic climate, the Egyptian Parliament passed on August 15, 2018 the new Law No. 176 of the year 2018 regulating both financial leasing and factoring activities, promulgating financial leasing Law No. 95 of the year 1995, which aims at steering economic volume and increasing production of small and medium enterprises.

In accordance with the new Law, Financial Leasing is a financial contract applicable on assets or usufruct rights concluded between two parties, the lessor and the lessee. Whereby the lessor allows the lessee to use their asset for a certain period, in consideration of a rental fee as per the provisions stipulated under the financial leasing contract. Providing the lessee with the option of purchase of such asset.