الهيئة العامة للرقابة المالية

 Dr. Mohamed Farid – FRA Chairman:

• Digital transformation is crucial for boosting the non-bank financial sector’s ability to deliver comprehensive insurance, investment and financing solutions.
• By leveraging technology, we can significantly cut the cost of acquiring and retaining customers, making financial services far more accessible.
• Digitalizing financial services through innovative approaches will empower the creation of a thriving middle class through long-term cumulative savings.

Dr. Islam Azzam – FRA Vice Chairman:

• FRA consistently partners with all relevant stakeholders to ensure its legislation positively impacts the market.
• FRA actively continues to approve legislation and regulations that bolster fintech and strengthen the non-bank financial sector.
• We’re actively developing new legislation for the insurance sector to significantly broaden access to insurance products.

Dr. Hala El-Said, Economic Advisor to the President of the Republic and Former Minister of Planning and Economic Development:

• FinTech sector has been the leading recipient of investments over the past five years.

Dr. Mohamed Farid,  FRA Chairman emphasized the pivotal role of digital transformation and financial technology (FinTech) in expanding financial inclusion and fostering economic prosperity during his keynote speech at the National Planning Institute’s Annual International Conference. The two-day conference, titled “Innovation and Sustainable Development,” is currently underway at the InterContinental Hotel in Cairo.

Dr. Farid highlighted that the core objective of  FRA’s legislative and regulatory efforts is to broaden access to financial, capital market, and insurance services for the widest possible client base. This strategy aims to enhance financial inclusion and simplify access to non-bank financial services. He particularly stressed FinTech’s indispensable contribution to achieving these goals.

Moreover, Dr. Farid explained that FinTech is instrumental in reaching long-term cumulative savings and investment targets, which, in turn, can cultivate a prosperous middle class. He added that FRA has analyzed the reasons behind low penetration rates for non-bank financial services, identifying financial literacy and a technological barrier as key obstacles. He underscored the importance of digitalizing non-bank financial operations for efficient transactions. Furthermore, he emphasized the need for electronic platforms to have robust infrastructure to handle growth, along with secure electronic protection systems to ensure data integrity and continuous service, even during unexpected surges in user numbers.

FRA Chairman affirmed the Authority’s commitment to implement an integrated system based on three fundamental components: electronic identity verification, digital contracts and linking identity data with mobile phone numbers. This initiative has already paved the way for remarkable growth, as evidenced by recent FRA data.  He pointed out that over 200,000 new accounts were registered in gold investment funds within a year, with investments in these previously unfamiliar products now exceeding EGP 2 billion.  He added that he number of new investors in the capital market surged dramatically from an annual average of 25,000 to over 350,000 in 2022 and 270,000 in 2023, representing more than a tenfold increase. Also, market capitalization of companies listed on the Egyptian Exchange has soared from approximately EGP 400 billion in August 2022 to an impressive EGP 2.4 trillion today.

 Dr. Farid emphasized that FRA is actively completing its legislative and regulatory frameworks to spur investment across various sectors. In the realm of crowdfunding, FRA has devised a flexible model to adapt different regulations, ensuring compatibility with modern financial instruments. The Authority is also preparing to introduce regulations for digital platforms that facilitate investment in real estate investment funds, kicking off this initiative with specific rules for real estate investment funds themselves.

Regarding the derivatives market, the existing Capital Market Law already provides a foundational legislative framework. However, FRA is currently drafting new legislation, dubbed the “Netting Law,” to establish clear mechanisms for settling contracts in cases of bankruptcy. This crucial new law will empower both bank and non-bank financial institutions to confidently enter the derivatives market, backed by explicit guarantees and precise legal frameworks.

FRA Chairman  underscored that FinTech isn’t an end in itself, but a vital tool for boosting societal savings. This, in turn, fuels investment, allowing the Egyptian economy to secure internal funding and reduce its dependence on foreign capital. Therefore, FinTech is essential for building a robust economy with a strong middle class.

On the other hand, Dr. Islam Azzam, FRA  Vice Chairman, participated in a dynamic panel discussion at the conference titled “FinTech Innovations and Sustainable Development.” He was joined by Dr. Hala El-Said, Economic Advisor to the President and former Minister of Planning and Economic Development, and Ibrahim Sarhan, Chairman of e-Finance for Financial and Digital Investments Group. The session was moderated by Dr. Ashraf El-Araby, Head of the National Planning Institute.

Dr. Islam presented FRA’s  strategic efforts to enhance  fintech adoption through a series of key regulatory decisions. These initiatives commenced with the issuance of Law No. 5 of 2022, a foundational piece of legislation designed to regulate the use of fintech within non-bank financial activities. This was promptly followed by resolution  No. 58 of 2022, which outlined  specific conditions and procedures required for the establishment, licensing and approval of companies and entities seeking to engage in non-bank financial activities leveraging fintech.

Further reinforcing this regulatory framework, the Authority issued resolution  No. 139 of 2023 addressing the technological infrastructure. This resolution detailed the essential equipment, information systems, and  security measures necessary for the effective and secure deployment of fintech in non-bank financial operations. In addition to , resolution No. 140 of 2023 which is the first regulatory decision from financial sector oversight bodies that detailed KYC requirements digitally. Additionally, resolution No. 141 of 2023 established an outsourcing register for fintech companies , identifying and authorizing companies that are permitted to provide eKYC (Electronic Know Your Customer)and contract registration services to financial firms operating within this sector.

Dr. Islam also shed light on resolution No. 30 of 2025 obliging  insurance companies and other entities licensed to engage in non-bank financial activities using fintech as well as companies registered in  fintech outsourcing register to verify the accuracy of their clients’ data. This includes validating national ID numbers and mobile phone ownership. Furthermore, they must check for client inclusion in anti-money laundering lists and lists prohibiting asset disposal. These comprehensive checks are required when clients enter into new contracts or renew existing ones, serving as vital steps in ensuring robust customer identity verification. This entire process is streamlined through an electronic linking system provided by the Authority.

The latest regulatory efforts by the Authority aim to continuously develop transactions and facilitate the remote issuance of insurance policies. This push is part of a broader strategy to refine the legislative and regulatory landscape, ultimately strengthening financial stability and safeguarding consumer rights in non-bank financial activities.

Recognizing the current economic climate and the challenges faced by emerging companies, Dr. Islam highlighted resolution No. 268 of 2023 outlining the rules and procedures for establishing and licensing FinTech startups engaged in non-bank financing. It specifies key requirements, such as mandating that these startups operate as Egyptian joint-stock companies, possess a minimum issued and paid-up capital of EGP 15 million per activity and submit a detailed technical and economic feasibility study. Additionally, it stipulates that at least 25% of the company’s capital must be owned by technology specialists, whether individuals or legal entities. Further demonstrating its commitment to foster innovation, the Authority has launched a Regulatory Sandbox for Technological Applications. This sandbox provides a controlled environment where practitioners of non-bank financial activities using FinTech, along with entities registered or seeking registration in the FinTech outsourcing register, can test innovative applications, business models and related mechanisms. This initiative is set to significantly bolster the Authority’s support for technology-driven digital startups offering non-bank financial services. The sandbox is expected to elevate innovation levels within the non-bank financial sector, broaden access to non-bank financial services and enhance the capabilities of non-bank financial companies and digital service providers.

On the other hand, Dr. Hala El-Said, Advisor to the President for Economic Affairs and former Minister of Planning and Economic Development, underscored the FinTech sector’s remarkable growth, noting its position as the largest magnet for investments over the past five years. She pointed out a substantial five-and-a-half-fold increase in the number of FinTech companies and a significant rise in financial inclusion, now reaching approximately 75% for individuals over 15 years old.

Dr. El-Said also lauded FinTech’s positive impact on sustainable development, emphasizing its role in streamlining financial transactions and driving higher rates of financial inclusion.

However, she also brought attention to the challenges confronting the FinTech landscape. These include persistent digital gaps in certain geographical areas and between genders, pressing cybersecurity concerns, the necessity for increased investments in FinTech infrastructure, the complexities associated with data storage and processing (which demand substantial investments and skilled personnel) and the critical need for robust governance within the FinTech system.