- FRA led the Financial Markets Development, Risk Management, Liquidity Support and Sustainability Team from 2021 to 2025.
- Farid: Stock exchanges play a vital role in getting people’s savings invested in businesses that create jobs and grow the economy, which helps more people join the middle class
- Accumulating savings and investments through ETFs empowers individuals to take control of their financial future
- The world requires an accelerated rollout of innovative and cost-effective financial tools to fund climate change solutions, including mitigation and adaptation strategies.
- Our ongoing efforts involve developing regulations and services that prioritize financial stability, investor protection, and ensure fairness for all participants
- We have the chance to be proactive in learning about AI and its applications to drive innovation in the non-banking financial system.
Dr. Mohamed Farid, FRA’s Chairman joined the 18th annual meeting of the Union of Arab Securities Authorities (UASA) in Doha. The meeting, co-hosted by Qatar Financial Markets Authority, brought together representatives from all 16 Arab member states for the third Arab Capital Markets Conference.
Dr. Mohamed Farid’s participation in the annual meeting of the Union of Arab Securities Authorities (UASA) aligns with FRA ongoing efforts in the region. For the second year in a row, FRA has chaired the working group responsible for implementing the UASA’s strategic plan (2021-2025). This plan focuses on developing Arab capital markets, managing risks, and promoting liquidity and sustainability.
The UASA’s meeting tackled several key topics.
Top of the agenda was reviewing and approving the 2023 annual report. They also discussed and potentially adopted the Union’s work plan and program for 2024. Additionally, the UASA considered signing a memorandum of understanding with the International Capital Market Association (ICMA) and explored ways to collaborate with IOSCO’s regional committees
Dr. Farid took center stage at the third Arab Capital Markets Conference. His keynote address focused on critical issues facing capital market regulators. He emphasized the importance of continuously improving the regulatory and legal frameworks for these markets to ensure Arab capital markets stay aligned with the latest global trends.
Also, he emphasized that well-developed capital markets can be a powerful tool for boosting economic and social progress, especially in emerging economies. By efficiently channeling savings into productive investments across various sectors, noting that capital markets can create jobs and increase overall economic capacity. Dr. Farid points out that advanced technologies and strong regulations shall create an appealing environment for both domestic and foreign investors.
He stressed that capital markets should also offer a wider range of investment options. This includes long-term savings and investment vehicles which can be crucial in fostering a strong middle class with financial security.
Dr. Farid pointed out a critical gap in capital markets is the difficulty of securing funding for emission reduction projects. This lack of funding hinders efforts to combat climate change, which itself poses a significant threat to the global economy.
He stressed that the urgency of climate change demands swift action. He stated “ We need to make funding readily available to reduce emissions in all countries, especially developing ones. This will help safeguard the planet from the dangers of climate change”.
He emphasized that reducing carbon emissions isn’t optional anymore. He proposed that creating new financial tools that align with environmental and climate goals, like carbon credits, is crucial for reaching global emissions reduction targets.
Moreover , he stressed that the Authority has been working hard to put the legal and regulatory framework to launch the African voluntary carbon market.
Also, he emphasized that the voluntary carbon market offers diversified investment opportunities and enables companies to keep abreast of global developments in this regard, especially by entering the European markets through the implementation of carbon emission reduction projects in accordance with global standards and practices.
Dr. Farid stressed that FRA has made significant progress together with the Egyptian Exchange in setting up the rules for the new voluntary carbon market. These efforts began starting from changing the regulations of the existing financial market laws to include carbon credits as a valid financial instrument , creating a committee to oversee the market and ensure everything is done properly and finally , establishing clear guidelines for how carbon emission reductions will be verified and validated.
Dr. Mohamed Farid joined a distinguished panel at the first session of the third Arab Capital Markets Conference. The session, titled “The regulatory challenges facing Arab financial markets,” featured experts from various organizations including Mr. Tajinder Singh- IOSCO Deputy Secretary , Ms. Nezha HAYAT, Chairperson and CEO of the Moroccan Capital Market Authority , Nandini Sukumar, Chief Executive Officer, The World Federation of Exchanges (WFE). Sallianne Taylor, Senior Policy Advisor at the Bloomberg London office moderated the discussion.
Dr. Farid emphasized that financial regulators must constantly prioritize protecting investors. This includes promoting clear rules, ensuring fair treatment for all participants, and leveraging modern technology. By strengthening regulations and tools, these efforts will ultimately contribute to the broader goal of financial stability for both licensed non-banking financial markets and institutions.
Dr. Farid pinpointed the rise of artificial intelligence (AI) as a major challenge for regulators. As AI use surges in the securities industry, regulators need to step up oversight to protect investors and maintain market stability. This requires a deep understanding of AI tools and the risks they pose. By addressing these risks swiftly, regulators can harness AI’s potential to foster market growth and development.
Dr. Farid also highlighted the Authority’s push to digitize transactions in the non-banking financial sector. This aligns with the Egyptian government’s vision of financial inclusion, aiming to bring more people into the financial system. By expanding access to non-banking financial services, the Authority hopes to improve people’s lives and empower them to achieve their investment, financing, and insurance goals.
To support the Egyptian government’s goal of financial inclusion, the Authority is actively implementing Law No. 5 of 2022 on regulating and promoting the use of financial technology (FinTech) in non-bank financial activities and services. In this respect, FRA issued three regulatory decisions related to digitalization of non-banking financial transactions.
The first tackles the technological infrastructure needed by non-bank institutions to operate digitally.
The second addresses digital identity, contracts, and records to ensure secure and transparent transactions.
The third addresses the establishment of outsourcing service providers registry where
three outsourcing service providers were registered until now.
These companies offer support to non-bank institutions, enabling them to deliver financial services digitally. This initiative aims to leverage the accessibility of new technologies and applications, ultimately increasing financial, insurance, and investment inclusion within the community.
Last modified: May 14, 2024