As Egypt continues to position itself as a regional technology and innovation hub, legal frameworks must keep pace with the evolving needs of software developers, tech startups, and enterprise clients. One of the most important aspects of this transformation is the proper structuring of technology contracts, particularly those involving software licensing, SaaS platforms, and data management.

Licensing vs. SaaS: Two Legal Realities

Software licensing agreements typically grant the customer the right to use a copy of the software under specific terms. Egyptian law, under Copyright Law No. 82 of 2002, recognizes software as a protected work and requires that licensing terms be clearly defined. Clauses addressing the scope of use, term, restrictions, and update rights are essential to avoid future disputes over unauthorized use or infringement.

In contrast, Software-as-a-Service (SaaS) contracts are structured as service agreements. Instead of transferring software, the provider grants access to a cloud-hosted platform. This shift changes the legal obligations of the parties. SaaS contracts must address availability, support, and exit strategies, particularly how data will be retrieved or deleted if the agreement ends.

Data Ownership and Legal Compliance

A central issue in any SaaS or tech contract is data ownership. The contract should explicitly state that the client retains ownership of its data, and that the provider is only authorized to use it for service delivery. This becomes even more important with the rise of data-driven business models and cloud storage.

Egypt’s Personal Data Protection Law No. 151 of 2020 reinforces this need. It places legal duties on businesses that collect or process personal data, including obtaining consent, safeguarding user rights, and reporting data breaches. Non-compliance can result in penalties, reputational damage, or even contract termination.

Jurisdiction and Dispute Resolution

Technology contracts often involve international parties. As a result, many agreements include arbitration clauses or apply foreign law. Egypt is a signatory to the New York Convention, which allows enforcement of foreign arbitral awards in Egypt. However, to ensure enforceability, contracts must still comply with Egyptian public policy and procedural rules.

Clear drafting of jurisdiction, dispute resolution method, and governing law is key to avoiding enforcement challenges. For purely domestic deals, Egyptian courts may be appropriate, though arbitration is often preferred for cross-border and high-value transactions due to speed and confidentiality.

Conclusion

As digital transformation accelerates, the legal structuring of tech contracts in Egypt must not be an afterthought. Licensing models, SaaS agreements, and data governance all require clear, enforceable terms. A strong contract not only protects intellectual property and defines responsibilities, it also builds trust in Egypt’s growing digital economy.