The acquisition was made through a Special Purpose Acquisition Company (SPAC), highlighting a growing interest in alternative financing models within the region.

Qardy, which began operations in 2022, is a digital lending platform focused on supporting micro, small, and medium-sized enterprises (MSMEs) in need of funding.

By joining forces with Qardy, CPME aims to strengthen its position in Egypt’s rapidly expanding digital finance market.

This transaction marks a significant step forward for Egypt’s startup sector, following in the footsteps of Swvl—a shared mobility company originally from Egypt but now based in Dubai.

Swvl became the first African-founded firm and only the second from the Middle East to go public via a SPAC when it merged with Queen’s Gambit Growth Capital and listed on the Nasdaq in March 2022.

The Financial Regulatory Authority (FRA) in Egypt has played a key role in making these types of deals possible.

By introducing clear guidelines for SPACs, the FRA has paved the way for more investments in high-growth areas like fintech and non-banking financial services.

This latest deal involving CPME and Qardy reflects a growing trend of using SPACs to unlock capital for startups.

It also demonstrates Egypt’s ongoing commitment to modernising its financial sector and creating a welcoming environment for investors.

With a strong regulatory framework and successful deals already in motion, Egypt is positioning itself as a leader in innovative finance across the Middle East and North Africa.