الهيئة العامة للرقابة المالية

Dr. Islam Azzam – FRA Chairman:

• Factoring platform launched in partnership with e-Finance to eliminate double financing and elevate efficiency.
• Intensifying collaboration is essential to drive sector performance. Our ultimate ambition is the complete digitization of all operations.

Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, has rolled out a comprehensive training program for factoring firms on its newly launched digital platform, developed in strategic partnership with e-Finance. The centralized system lets companies run instant online checks on invoices to confirm their funding history, permanently blocking double financing and duplicate factoring transactions across the sector.

During the training session, attended by Waleed Anwar, Assistant to FRA Chairman, representatives of factoring companies were introduced to the platform’s core operational mechanisms. The session guided firms on meeting the requirements of FRA Board Resolution No. 51 of 2026, ensuring no duplicate factoring claims exist for the same asset while enabling companies to digitally freeze invoices in their favor for the entire contract duration.

Participants also received hands-on training on incorporating provisions into vendor agreements to mandate the registration of security rights arising from financing within the Egyptian Collateral Registry (ECR), in accordance with Movable Collateral Law No. 115 of 2015 and its Executive Regulations.

Technical experts and trainers from FRA and e-Finance addressed inquiries from corporate representatives regarding the platform’s invoice management tools, as well as communication channels with key entities, including the Authority, Ministry of Finance and Egyptian Tax Authority

Dr. Islam Azzam, FRA Chairman highlighted that the platform, officially launched in February 2026, acts as a essential risk-mitigation engine designed to upgrade market governance and establish direct technical integration among market participants and regulatory bodies. He noted that FRA plans to replicate this digital framework across all non-banking financial sector.

 FRA Chairman reported significant growth in Q1 2026 compared to Q1 2025, with debit balances surging by 48.7%, active client bases expanding 28.2% from 747 to 958 companies, and total factored receivables surpassing EGP 40 billion, up from EGP 29.4 billion.

Additionally, Dr. Islam Azzam emphasized the need for closer collaboration with the Egyptian Factoring Federation. He noted that the total number of licensed providers—comprising both specialized factoring firms and multi-activity providers—contracted slightly to 39 in the first quarter of 2026, down from 41 during the same period last year.

He added that the Authority aims in the coming period to fully digitize factoring process end-to-end. This spans from mandatory pre-approval invoice inquiries during the credit assessment phase prior to disbursing funds, to verifying the absence of duplicate factoring on the same asset and freezing invoices throughout the contract duration, through to final settlement execution. This initiative will enable companies to accelerate transactions, tighten risk controls, reduce costs and operate within a fully integrated technical framework.

Factoring is a non-banking financial activity regulated by Financial Regulatory Authority (FRA). It serves as a short-term financing tool designed to accelerate cash flow cycles while enhancing corporate liquidity and profitability. Under a financing agreement between a factor (factoring company) and a seller (assignor company), the factor purchases current and future financial receivables arising from the sale of goods and provision of services.