الهيئة العامة للرقابة المالية

• These discussions extend the ongoing efforts by the Authority and state institutions to highlight Egypt’s economic reforms at the IMF and World Bank meetings.
• Expanding the ownership base must incorporate all types of financial institutions, as public markets significantly enhance governance and overall market discipline.
• Digitizing transactions, implementing e-KYC and enabling e-account opening have had the greatest impact on boosting financial engagement and inclusion rates.
• Egypt’s robust framework for entrepreneurship and startups has proven pioneering, successfully attracting significant investments and establishing it as the leading African destination for Venture Capital (VC).

Dr. Mohamed Farid, FRA Chairman conducted intensive and productive meetings with senior global investors from JP Morgan, Morgan Stanley, and Goldman Sachs in Washington, D.C. Held on the sidelines of the IMF and World Bank meetings, the dialogues underscored FRA’s commitment to deepening engagement with the international investment community. The discussions centered on Egypt’s non-banking financial market reforms, a strategic drive to solidify the country’s position as a leading regional investment hub.

Dr. Farid reviewed FRA’s recent structural development efforts to establish more efficient and globally integrated financial markets. He emphasized that the Authority’s core strategy centers on boosting transparency, governance and institutional participation considered as key to achieve market discipline and sustainability.

Specifically, FRA Chairman argued that expanding the market’s ownership base must incorporate institutional players like pension funds, insurance companies and investment funds. Their inclusion is critical for improving pricing efficiency and ensuring market stability, as they promote long-term investment and curb speculative trading.

Furthermore, Dr. Farid highlighted the impact of digitization and technological transformation as essential development drivers. Adopting comprehensive digital solutions – such as e-KYC and e-account opening – has delivered a significant surge in financial inclusion and engagement with the formal financial system, directly supporting the Egyptian government’s strategy.

Also, he pointed out that these steps have empowered new categories of investors and consumers, specifically youth and entrepreneurs, by granting them easy and secure access to non-banking financial services. This vital access not only significantly strengthens financial inclusion but also bolsters the national economy’s resilience against global challenges.

Dr. Farid further highlighted the success of Egypt’s integrated efforts in fostering the entrepreneurship and startup ecosystem. Through the development of specialized legislation for Venture Capital (VC) and startup financing, Egypt has become the leading country in Africa for attracting VC investments in recent years. This achievement, he clarified, is the result of adopting a clear vision to encourage innovation and implementing a strategy that cultivates a nurturing investment environment, thereby creating new job opportunities and stimulating the digital economy.

FRA Chairman stressed that the upcoming phase will prioritize accelerating technical and institutional cooperation with international partners and global investment institutions. This collaboration is crucial for exchanging expertise and supporting local capacity building in areas like Sustainable Finance and Digital Transformation, alongside developing new mechanisms to facilitate the entry of foreign capital into the Egyptian market.

Dr. Farid affirmed that FRA is re-structuring the relationship between regulation and innovation. The core objective is to combine investor protection with the facilitated entry of new financial products, ensuring the market keeps pace with new financing tools such as Green Finance, Sukuk and Venture Capital.

FRA Chairman added that the Authority is actively working to enhance integration between Egyptian capital markets and their regional and international counterparts. This involves developing a legislative and regulatory environment that is more flexible and attractive while adhering strictly to the highest standards of disclosure and governance. This comprehensive orientation is designed to establish the Egyptian market as a pivotal hub for investment flows – a balanced model defined by efficiency, discipline and transparency.