The Financial Regulatory Authority (FRA) was established pursuant to Presidential Decree No. 192 of 2009 and by Law No. 10 of 2009. FRA replaced the Egyptian Insurance Supervisory Authority (EISA), the Capital Market Authority (CMA), the Mortgage Finance Authority (MFA), and the General Authority for Investment (GAFI) in overseeing Egypt’s financial leasing & factoring activities. The Authority regulates and oversees the non-banking financial sector and instruments. This includes but is not limited to the capital market, futures exchanges, insurance activities, mortgage finance, financial leasing, factoring & securitization, as well as micro, small & medium enterprises (MSMEs) financing and the Egyptian Collateral Registry. FRA is responsible for safeguarding and balancing the national non-banking financial market. The Authority administers market legislation & development and clients rights’ protection, while also issuing rules that ensure efficiency and transparency of related activities. FRA in the Egyptian Constitution: Article No. 221 of the Egyptian Constitution stipulates: “FRA is responsible for monitoring and supervising the financial non-banking sector and instruments, including the capital market, futures exchanges, insurance activities, mortgage finance, financial leasing, and factoring & securitization, as regulated by Law.” Article No. 217 of the Egyptian Constitution stipulates: “Independent bodies and regulatory entities shall submit annual reports to the Egyptian President, the House of Representatives, and the Prime Minister, immediately after their public issuance. The House shall examine these reports and take the appropriate action within a period not exceeding four months from the date of receipt. The reports shall be made available to the public. Any suspected violations or crimes should be reported to the competent investigation authorities, who shall take the necessary measures in this respect within a specified period of time, as stipulated by law.” FRA Jurisdiction: ● Establishment and Licensing ● Regulating and Supervising ● Inspection and Enforcement ● Investors And consumers protection ● Financial Awareness and Literacy ● Developing Non-Banking Financial Markets Non-Banking Financial Services Under FRA Supervision: – Capital Market: Incremental Savings ، Investment Funds – Insurance Activities: Hedge against future risks to safeguard financial assets. – Mortgage Finance: Streamline the purchase and ownership of ready-to-move-in properties. – Financial Leasing: Permits ownership transfer of the leased asset to the lessee at the end of the lease term. – Factoring Activities: Allows businesses to secure financing by selling their accounts receivable (i.e. unpaid invoices) to meet their immediate and short-term cash needs. – MSMEs Financing: Prompts low-income groups to contribute to the formal economy by granting financing to individuals and MSMEs. – Consumer Finance: Includes all forms of financing that tend to enable the borrower to purchase a commodity or service for consumption and to repay over a period not less than six months. Capital Market The Egyptian capital market plays a vital role in driving the national economy through fostering transformation of accumulated savings into investments in new projects for economic and social development. Capitalizing on its high tech-driven instruments and broadening regulatory perimeter, the Egyptian capital market managed to forge an attractive investment climate. Private equity funds are a type of investment funds that invest in listed and unlisted securities, while also engaging in capital venture activity. Being one-of-a-kind in the non-banking financial sector, this activity provides financing for high-risk and high-value-added projects, including those involved in advanced technology activities such as biotechnology, information technology and softwares. The success of such enterprises contributes to the rapid transformation into an economy that is based on knowledge and innovation, as the Government seeks to boost the competitiveness of the Egyptian economy and to establish adept products and exports. Insurance Activities The Egyptian insurance sector is deemed one of the key non-banking financial services for its fundamental contribution to the national growth domestic product (GDP), being integrally linked to other economic sectors. The sector plays a vital role in addressing risks faced by economic assets, making it the most important tool in ensuring the stability and continuity of the sector-related activities. Private insurance funds are one of the core components of the Egyptian insurance sector for playing a complementary role to insurance companies. Private insurance funds provide an array of savings and retirement schemes, varying in patterns between defined benefits and limited subscriptions, some of which offer additional pensions alongside the Government’s pension schemes. They are considered a crucial savings tool that is established apart from the originator entity for granting insurance benefits, additional pensions, social benefits or health care to the originator’s employees. On the other hand, government insurance funds are also among the main components of insurance activities in Egypt, addressing risks that are not normally tolerated by insurance companies or those that the Government decides to manage by itself. Mortgage Finance The non-banking financial sector offers a broad range of funding opportunities and mechanisms, thus contributing to bridging the national economy’s financing gap and driving growth. Mortgage finance is one of the most important financing instruments for enabling individuals and institutions to own real estate assets. The real estate sector is among the key sectors shaping the Egyptian economy. Its legislative framework is of paramount importance for constituting the legalities governing the market. Real Estate Finance Law No. 148 of 2001 is a main legislation regulating the Egyptian real estate market, as amended under Law No. 55 of 2014. On the other hand, mortgage finance provides medium- and long-term funding for acquiring real estate assets, whether for economic purposes or for housing finance, restoration, repair or maintenance. Financial Leasing & Factoring The Financial Leasing & Factoring Law issued in August 2018 enhances financial inclusion and ensures that non-banking financial instruments reach different segments of the society. Meanwhile, the provisions of Law No. 141 of 2014 allows corporates, associations and non-governmental organizations (NGOs) authorized to engage in microfinance activity to provide microfinance leasing services as per the regulations established by the FRA’s Board of Directors. The legislation is aimed at supporting and developing microfinance providers and expanding their non-banking financial services by using their database to tap more customers in small or craft industries, marking an additional incentive for complementary small industries that opens up broader prospects for job creation. Financial leasing provides financing for productive enterprises to purchase costly assets. It permits asset utilization and ownership transfer after the lease period is completed. Financial leasing helps fund capital expenditure and boosts productive assets at the national level. It also plays a prominent role in bolstering medium and small industries seeking to purchase machinery, equipment and start-up supplies. MSMEs Financing In 2014, FRA introduced microfinance activity as part of the Government’s financial inclusion strategy. Microfinance institutions seek to prompt marginalized groups to contribute to the formal economy by granting financing to individuals and MSMEs through accessible means, thereby reducing unemployment and helping to raise income levels of the financially underserved, reflecting positively on augmenting investments and shoring up the macroeconomic performance. Law No. 201 of 2020 was promulgated to amend some provisions of Law No. (141) of 2014 on regulating the microfinance activity. Accordingly, the “Microfinance Law” name was changed to the “MSME Finance Law”, aiming to extend the umbrella of financial inclusion to MSMEs clients. Consumer Finance This includes all forms of financing that tend to enable the borrower to purchase a commodity or service for consumption and to repay over a period not less than six months. It primarily addresses the family sector and can benefit legal persons. At the national economic level, consumer finance mechanisms help raise domestic demand, therefore boosting investments, employment and economic growth, while driving the family sector to make better use of resources and to expand its capacity to plan and save. Consumer finance is deemed one of the main tools for individuals to access finance, allowing middle- and low-income classes to tap financial services, thus achieving financial inclusion which is one of the key pillars of the United Nations’ Sustainable Development Goals (SDGs). It is also an important component of the Sustainable Development Strategy: Egypt Vision 2030. Consumer finance is subject to the FRA’s Supervision, in accordance with Consumer Finance Law promulgated by Law No. 18 of 2020. Egyptian Collateral Registry Under the FRA’s keenness to develop non-banking financial services and provide financing for various activities such as mortgage finance and financial leasing, by the end of 2017, the Authority contracted with the Egyptian Credit Bureau I-Score to establish and operate Egypt’s first central movable collateral registry, which was rolled out in March 2018. FRA Affiliates & Independent Entities: ● Financial Services Institute (FSI): Raising awareness and qualifying professionals. ● Regional Center for Sustainable Finance (RCSF): Improving sustainability practices and achieving a green economy. ● Egyptian Institute of Directors (EIoD): Enhancing governance levels. ● Egyptian Center for Arbitration & Settlement of Non-Banking Financial Disputes (ECAS): Specialized in arbitration and settlement of disputes arising due to the application of laws related to non-banking financial transactions among partners, shareholders or members of sector-specific corporates and financial entities, whether between them or between these companies and entities, paired with disputes between clients or beneficiaries of non-banking financial activities with these companies and entities. | 
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