الهيئة العامة للرقابة المالية

Dr. Islam Azzam – FRA Chairman:

“FRA aims to balance market expansion with robust oversight and consumer protection”.

FRA Board of Directors chaired by Dr. Islam Azzam has issued a resolution amending regulations governing the registration, relocation and closure of non-banking finance company branches. This resolution is part of ongoing efforts to foster a regulatory environment that drives sector growth and robust governance. The amendments streamline expansion procedures for compliant companies, enabling them to expand across various governorates and geographical regions. This supports the state’s financial inclusion targets while maintaining rigorous oversight and risk management efficiency.

Resolution No. 100 of 2026, officially published in the Official Gazette, modifies the regulatory framework established under resolution No. 44 of 2026 for non-banking financial institution (NBFI) branches. The said resolution granted companies a six-month grace period to align with these regulations, ahead of the August 25 compliance deadline.

Dr. Islam Azzam, FRA Chairman stated that this amendment reflects the Authority’s commitment to strike a balance between supporting the expansion of non-banking financial activities on one hand, and strengthening oversight and protecting consumer rights on the other ultimately driving market prosperity and service quality.

Under the new amendment, companies that are subject to judicial rulings, criminal prosecution requests, or administrative enforcement measures, and wish to register new branches, must have fully executed the ruling, settled the violations, or rectified the causes of the enforcement measures, with at least three months having elapsed since then.

If the underlying cause of an administrative measure cannot be rectified, a minimum period of three months and a maximum of three years must pass, as determined by FRA based on the gravity of the violation.

To register new branches, non-banking finance companies must also demonstrate compliance by submitting regulatory reports, as well as annual and periodic financial statements to FRA on time, while addressing inspection notes and satisfying compliance requirements.

Regarding the supervisory structure of branch networks, the new amendment permits companies to assign a single risk officer and a single credit officer to oversee a maximum of four regional zones, provided they maintain all existing supervisory and technical obligations. Under this framework, each regional zone will comprise five finance branches. Management must carefully account for distinct concentration risks within each zone’s portfolio, ensuring that the allocated risk appetite aligns proportionately with the company’s total financing portfolio.

Notably, FRA Board’s resolution No. 44 of 2026 established an integrated regulatory framework for all types of non-banking finance company branches. This includes marketing offices whose role is strictly limited to product promotion and document collection without granting financing or collecting installments; mobile branches operating via mobile units to reach new areas; and seasonal branches tied to specific seasons or events.

The resolution mandated companies to establish a comprehensive organizational structure for managing branch networks according to an approved geographical distribution. It also required clearly defined credit decision-making mechanisms—whether through centralized committees at the head office, regional committees, or branch-level committees—or by distributing authorities based on financing tiers, products, and risk appetite. Furthermore, it specified the documentation and procedures required for branch registration, approval criteria, inspection and study fees, and administrative measures against violators.