الهيئة العامة للرقابة المالية

Dr. Islam Azzam, FRA Chairman:

• Short selling is to be launched, backed by ongoing central lending training for market participants.
• Capital market development is essential amid surging trading volumes and investor growth.
• Trading values in Q2 2026 exceeded 6.4 trillion Egyptian pounds, surging 78.3% compared to Q2 2025.
• “Market maker” mechanism is a top priority; new instruments will enhance liquidity levels and stimulate trading activity.

Dr. Islam Azzam, FRA Chairman received Mr. Jalil Tarif, Secretary-General of the Union of Arab Securities Authorities (UASA), accompanied by Dr. Tarek Seif, FRA Vice Chairman and several senior Authority officials. The meeting explored ways to strengthen bilateral cooperation in awareness, training and capacity-building through the Financial Services Institute (FSI)—

FRA’s training arm—and the Regional Center for Sustainable Finance and Carbon Markets.

The discussions reviewed the positive outcomes achieved by training programs under the memorandum of understanding between the Regional Center and the Union. These programs focus on exchanging technical expertise, qualifying cadres across Arab countries, and sharpening skills to handle green financial instruments, formulate sustainable finance and carbon market strategies and promote responsible investment—initiatives that have earned widespread acclaim from beneficiaries and specialists.

Discussions also addressed expanding cooperation by launching new, diverse training programs to transfer Egyptian expertise to non-banking financial sector cadres in other Arab nations. These initiatives will cover fintech, financial derivatives and carbon markets—a sector where Egypt has established a pioneering regulatory and governance framework, completing the foundational rules for the voluntary carbon market as the first regulated and monitored market of its kind in Africa.

Dr. Islam Azzam highlighted FRA’s latest regulatory milestones in capital markets and investment funds, announcing that “short-selling” operations will officially launch within a few weeks. This follows the completion of the central lending system, full technical integration between Misr for Central Clearing, Depository and Registry (MCDR) and brokerage firms, and the simulated training of market participants on the system.

FRA Chairman detailed the new regulatory framework for short selling, issued under Board Decision No. (155) of 2026 which establishes robust rules ensuring full transparency, corporate governance and the protection of all stakeholders in alignment with global best practices. He emphasized that the upcoming short-selling rollout caps a comprehensive modernization of capital market instruments, following the launch of the derivatives market last March, the introduction of futures contracts on key exchange-traded stocks, and the regulation of hedge funds for the first time—allowing them to execute short selling, invest in derivatives and utilize other high-liquidity instruments.

Dr. Islam Azzam highlighted that ongoing market development is essential for bolstering liquidity, refining price discovery, and diversifying investment options. He pointed to robust market growth fueled by an addition of over 171,000 new investor accounts by the close of Q2 2026, alongside trading values scaling to 6.4 trillion Egyptian pounds—a 78.3% jump from the same period last year.

FRA Chairman also outlined key priorities for the upcoming phase, notably the market maker mechanism. He highlighted its vital role in stimulating trading and enhancing liquidity, especially following the recent tax package exempting the mechanism from stamp duty, and noted that the Authority is exploring additional incentives for market makers to spur institutional investment, coinciding with the upcoming listing and offering of major state-owned enterprises on the Egyptian Exchange.

For his part, Mr. Jalil Tarif praised FRA’s continuous efforts to develop Egypt’s non-banking financial sector while expanding awareness initiatives, training programs and investor protection. He commended the Authority’s active role within the International Organization of Securities Commissions (IOSCO) and the Arab Union in fostering regulatory coordination, combating market manipulation and fraud, and addressing anti-money laundering and counter-terrorism financing (AML/CTF).

The Union’s Secretary-General also shared and discussed legislative and regulatory updates concerning capital markets across Arab nations, focusing on challenges related to technological advancement, the expansion of fintech, online trading platforms and cyber risks. He stressed the importance of ongoing consultation, cooperation and information sharing among union members, alongside expanded training and capacity-building programs to elevate market efficiency and transparency.