الهيئة العامة للرقابة المالية

Dr. Farid :

• The Authority adopts a “Smart Regulation” model to accelerate digital transformation and build an economy driven by innovation and knowledge.
• The transition is no longer a luxury, but a necessary bridge to build a strong and sustainable national economy.
• 300,000 digital verification operations processed. 250,000 electronic contracts executed to date.
• 25 non-banking financial institutions (NBFIs) are now offering their services digitally. FRA has registered 6 outsourcing companies to support the sector’s technological needs. 2 FinTech startups licensed for establishment.
• FRA Established electronic linkage with securitization and insurance firms, creating a comprehensive database that significantly boosts supervisory and regulatory efficiency.
• FRA Chairman inspected the booths of Misr Insurance and GIG Insurance and listened to presentations on their efforts to digitize their insurance services at the exhibition.

Dr. Mohamed Farid, FRA Chairman emphasized the Authority’s rapid and consistent progress toward adopting and implementing the “Smart Regulation” model. This technology-centric approach is viewed as the primary catalyst for accelerating digital transformation, which, in turn, is key to build an economy driven by innovation and knowledge. Dr. Farid made this assertion while presenting a comprehensive review of the non-banking financial system’s digitization efforts to Prime Minister Dr. Mostafa Madbouly at the Cairo ICT 2025.

Dr. Farid underscored the Authority’s core belief that digital transformation is no longer optional but an “essential bridge” required to build a strong, sustainable national economy. He highlighted Egypt’s considerable national assets, including its innovative youth and ambitious ideas, arguing that establishing a pro-innovation regulatory environment is not merely a reformative measure but a national necessity.

FRA Chairman detailed the institutional roadmap for this transformation, which began in February 2022 with the issuance of Law No. 5. This landmark legislation formally regulates the use of technology within non-banking financial activities, marking the clear starting point for the sector’s digital development. This legislative journey was completed in June 2023 with the introduction of a complete package of executive resolutions. This includes resolution No. 139 provided the comprehensive framework for the sector’s technological infrastructure, focusing on critical elements such as data security, governance, risk management and general infrastructure deployment. In addition to resolution No. 140 addressed the foundational tools of digitization, covering the use of digital verification, digital identity, electronic contracts and digital registers.

That is besides resolution No. 141 requiring the creation fintech outsourcing registry.

 FRA Chairman added that in November 2023, resolution No. 163 established and operationalized FRA Regulatory Sandbox. This crucial tool provides a secure, isolated environment where innovative financial technologies can be tested before full market deployment. This was closely followed in January 2024 by resolution No. 268, permitting the establishment of FinTech startups with a minimum capital of just EGP 15 million. Dr. Farid characterized this move as a “clear declaration that the Authority adopts regulation supportive of creativity.”

FRA Chairman highlighted two primary regulatory tools supporting this transformation before the Prime Minister: the operational FRA Regulatory Sandbox for controlled innovation testing and FRA FinTech Forum platform, which serves as a vital point of communication connecting innovators, existing companies and policymakers.

Central to this approach is the new philosophy of “Smart Regulation,” where the Authority views failure as a natural, necessary stage in company development. This model moves beyond traditional supervision, focusing instead on effective empowerment for sustainable growth and innovation.

Dr. Farid pointed out that the “Startup License Initiative” proved to be a pivotal success in fostering a new generation of FinTech companies. By setting the required capital at a realistic EGP 15 million, the initiative significantly enhanced market entry flexibility. This capital requirement is specifically tailored to suit the characteristics of Small and Medium Enterprises (SMEs), recognizing their vital role as the backbone of the real economy.

Dr. Farid highlighted that the digital infrastructure established by FRA has produced unprecedented operational figures, including the execution of 300,000 digital verification operations and the issuance of 250,000 authenticated digital contracts. He emphasized that these metrics are foundational to foster an “Economy of Trust,” characterized by high transparency and streamlined procedures.

Reviewing the digital evolution across the market, Chairman noted that 25 non-banking financial companies from a total of 79 are currently offering their services fully digitally, with an additional 54 companies actively meeting the necessary digital requirements. Furthermore, 6 outsourcing companies have been registered at the new registry. Additionally, FRA Chairman detailed the current sectoral distribution of digital services adoption within the non-banking financial sector, noting that the Capital Market dominates with 65% of the digital services. Financing accounts for the next largest share at 29%, while the Insurance sector currently stands at 6%.

Dr. Mohamed Farid affirmed that these developments signal a radical shift in the philosophy of regulation. He articulated a forward-looking vision where the economy is managed not by traditional tools, but by future-focused principles: an economy driven by ideas before capital, stimulating legislation before traditional supervision, digitization before paper and innovation before rigid procedures.

To bolster regulatory efficiency, the Authority achieved full electronic data linkage with both insurance companies and securitization companies (specifically for portfolio data), significantly enhancing digital monitoring and supervision capabilities. Moreover, FRA recently approved the establishment of the first REIF digital platform marking a major step in utilizing digital solutions for financing and investing in the real estate sector.

FRA Chairman concluded his address by reiterating that digital transformation is the core bridge to a modern economy. He emphasized Egypt’s potential, asserting that Egypt possesses the youthful energy required to lead a new wave of economic transformation. Dr. Farid stressed the Authority’s ongoing commitment to continuously develop non-banking financial legislation, thereby ensure the creation of a strong, innovation-fostering environment.

On the sidelines of FRA’s participation in the Cairo ICT events, Dr. Mohamed Farid visits the booths of Misr Insurance and GIG Insurance. During these visits, he received briefings on the substantial efforts being undertaken by both companies to digitize and streamline their respective insurance services.