الهيئة العامة للرقابة المالية

• The Authority’s strategy leverages digital transformation and new regulations to broaden the investor base and simplify access to non-banking financial services.
• A key focus is empowering youth via educational initiatives to enhance financial literacy and investment participation.
• High-level bilateral meetings were held with regulatory heads from Turkey, Malta, Dubai and the IOSCO Chairman to deepen international cooperation and exchange expertise.

Dr. Mohamed Farid – FRA Chairman:

• FRA is committed to developing and nurturing robust capital markets that actively support economic growth.
• The Authority is constantly working to boost the readiness and resilience of the Egyptian market.

Dr. Mohamed Farid, FRA Chairman and Vice Chair of the IOSCO Board recently participated in GEMC Market Development Workshops in Malta. Held under the theme “Building Resilient Capital Markets for the Future,” the workshops coincided with Dr. Farid’s role in chairing the concurrent GEMC meetings. The core themes of the event focused on strategies to strengthen markets to cope with global changes, enhance operational efficiency and ensure sustainable growth.

During his participation, FRA Chairman highlighted Egypt’s proactive efforts to enhance its market readiness for rapid global transformations. He stressed that digital transformation is now a crucial pillar of modern regulatory oversight. He emphasized that the Authority’s strategic reliance on digital tools and data analytics has significantly raised supervisory efficiency and improved the quality of regulatory decisions, successfully achieving a vital balance between investor protection and encouraging innovation. Additionally, he pointed to the significant progress in improving Egypt’s legal and regulatory environment. This is reinforced by governmental cooperation aimed at simplifying companies’ registration and related procedures. These reforms are critical for solidifying the role of startup companies in driving economic growth and creating new job opportunities.

To enhance financial inclusion and attract new segments to the Capital Market, Dr. Farid underscored the critical importance of empowering youth as a key driver of future growth. He highlighted that in 2023, the Authority adopted a package of qualitative resolutions (including No. 139, 140 and 141) specifically designed to remove barriers preventing youth and new investors from accessing non-banking financial services.

These resolutions have strategically accelerated digital transformation by establishing crucial procedures for Electronic ID Verification (EIDV) and remote investment. As a direct result, these measures are successfully expanding the active investor base and streamlining citizens’ access to modern investment instruments.

FRA Chairman emphasized that financial literacy is critical for both boosting the investor base and driving long-term investment. The Authority’s comprehensive strategy includes specialized training, expanded educational partnerships and new digital content tailored for youth all over Egypt. These programs are intended to deepen market sustainability and foster an informed, participating society within the national economy.

Dr. Farid also presented regulatory efforts dedicated to encouraging innovation and attracting investment. Chief among these is the authorization to establish Special Purpose Acquisition Companies (SPACs) under a model uniquely tailored to the Egyptian market. He explained that this innovative structure effectively blends venture capital mechanisms with public offerings, which allows for the listing of multiple startup companies within a single portfolio on the Stock Exchange. This provides smaller companies with superior financing opportunities and offers investors the advantage of risk diversification and enhanced returns, all within a flexible and balanced regulatory framework.

To develop the financial innovation system, Dr. Farid highlighted the crucial role of the Regulatory Sandbox (FRA Sandbox) in allowing companies to test innovative solutions under supervision which supports new product development while maintaining governance and transparency. He also noted the decision requiring insurance companies to invest a minimum of 2.5% of paid-up capital and 5% of free funds in EGX-listed equity funds to boost market liquidity and efficiency.

Dr. Mohamed Farid concluded by affirming the Authority’s commitment to continuously developing the Capital Market. This is achieved through balanced regulations that support innovation, protect investors, and build a more resilient market capable of adapting to future changes.

On the sidelines of the event, Dr. Farid conducted several high-level bilateral meetings with prominent international regulatory leaders, including the Chairman of the Capital Markets Board of Turkey (CMB), the CEO of the Malta Financial Services Authority (MFSA), the CEO of the Dubai Financial Services Authority (DFSA) and Chairman of the IOSCO Board. These crucial meetings aimed to enhance international cooperation, facilitate the exchange of regulatory expertise and strengthen coordination on shared issues, ultimately serving to develop financial markets and boost their resilience against global challenges.