الهيئة العامة للرقابة المالية

FRA and Ministry of Supply Sign Protocol to Establish Premium Commercial Registry Office for Non-Banking Financial Companies – Tuesday 20 January 2026  

• Partnership between FRA and Ministry of Supply to establish a commercial registry office at FRA headquarters, streamlining incorporation and status updates for non-banking financial companies

Dr. Mohamed Farid, FRA Chairman and Dr. Sherif Farouk, Minister of Supply and Internal Trade, witnessed the signing of a cooperation protocol between the Internal Trade Development Authority (ITDA) and FRA. The protocol aims to establish and equip a Premium Commercial Registry Office specifically for corporate services within FRA’s headquarters. This initiative is part of the Ministry’s efforts to modernize the Commercial Registry system and enhance service quality for business and investment community.

Mr. Mohamed Abdel-Hamid El-Sayyad, FRA Vice Chairman and Dr. Mohamed Awad, Chairman of ITDA signed the protocol.

Dr. Mohamed Abdel-Aziz, Assistant to Chairman; Mr. Hatem Nour, Deputy Assistant Chairman; and Eng. Sherif Yehia, Deputy Assistant Chairman attended the signing ceremony.

From the Ministry’s side, attendees included Major General Walid Abu El-Magd, Deputy Minister of Supply; Dr. Ahmed Kamal, Assistant Minister and Official Spokesperson; and Ms. Sarah El-Azazy, Head of the Minister Office Sector.

Representing the ITDA were Mr. Kamel Abdel-Razek, Head of the Central Dep. of the Commercial Registry; Mr. Ashraf Gado, Head of the Central Dep. of ITDA Information Center; and Mr. Ahmed Mostafa, Undersecretary of the Central Dep. of Commercial Registry.

Dr. Mohamed Farid, FRA Chairman emphasized the importance of this cooperation with the Ministry of Supply and Internal Trade, represented by ITDA. He noted that the protocol reflects both parties’ commitment to support the business environment and ensure that companies can access government services with speed and efficiency.

FRA Chairman explained that establishing a premium commercial registry office within FRA’s headquarters will facilitate the incorporation and status updates for companies operating in Non-Banking Financial Services (NBFS). This integration of services supports the State’s efforts to improve the investment climate and raise efficiency of institutional performance.

Dr. Farid stated that this partnership reflects FRA’s commitment to improve Egypt’s investment appeal by simplifying regulatory procedures and reducing the number of entities investors must engage with. By launching premium registry services on-site, FRA is effectively “bringing the service to the recipient,” cutting the time and effort needed for company formation and legal updates. This move is expected to create a more attractive and competitive environment.

He added that this collaboration aims to assist investors in the NBFS sector by providing a comprehensive bundle of services in a single location, reducing administrative burdens. He stressed that such steps bolster the stability and growth of non-banking financial markets, providing a more flexible and transparent regulatory environment which positively impacts investor confidence and economic development.

Minister of Supply and Internal Trade confirmed that the protocol is part of the Ministry’s plan to modernize commercial registry services and expand “Premium Service” offerings. This is intended to streamline procedures, reduce service turnaround time, and create a more efficient business environment, following state directives to support economic activity and accelerate digital transformation.

Dr. Sherif Farouk explained that establishing an integrated commercial registry office within FRA serves as a practical model for inter-institutional integration. Given FRA’s vital role in regulating non-banking financial activities and serving a broad segment of corporations, this synergy will yield positive results for the overall investment climate.

The Minister noted that the new office will operate under the “Premium Services” system, allowing companies and investors to complete various transactions – including registration, amendments, and cancellations – with higher speed and quality, effectively reducing the time and effort exerted by stakeholders.

In a related context, Dr. Mohamed Awad, Chairman of ITDA, emphasized that the protocol reflects the Authority’s commitment to upgrade the commercial registry system. By expanding the model of “Premium Offices” within vital institutions, ITDA aims to achieve seamless and rapid service delivery.

Awad explained that ITDA will provide qualified personnel, technical support, and the necessary operating systems to ensure the office functions with the required efficiency. This includes enhancing informational integration and data exchange between both parties while maintaining full data confidentiality and adhering to the highest standards of governance.

In conclusion, Dr. Sherif Farouk reaffirmed the Ministry’s continued dedication to implement development plans for government services and expand institutional partnerships to improve the business environment, support investment, and strengthen the business community’s trust in the Egyptian Commercial Registry system.

FRA Approves the Incorporation and Licensing of 9 Companies Across 7 Regulated Activities – Monday 19 January 2026

• Approval for Incorporation of Aman Securitization, Amjad Holding, and Sadara Holding to engage in financial investment activities.
• Al Ahli Kuwait Leasing granted a license to practice Factoring.
• Orion Consumer Finance (algo) receives a license to operate in Consumer Finance.
• Square Forty Capital granted a license for Promoting and Underwriting of securities.
• CIB Finance adds Financial Leasing to its activities.
• Pharaonic Securities Brokerage obtained license to act as a receiving entity for Investment Fund subscriptions.

FRA’s Incorporation and Licensing Committee has approved the incorporation and licensing of nine companies to conduct seven non-banking financial activities. These regulated activities include securitization, factoring, financial leasing, receiving subscriptions for investment fund certificates, promotion and underwriting, financial investments, and company incorporation.

In accordance with FRA Chairman Decree No. 3060 of 2023, Incorporation and Licensing Committee serves as the competent body responsible for approving the incorporation and licensing of companies operating within the non-banking financial sector.

The Committee approved the incorporation of three entities: Aman Securitization, Sadara Holding, and Amjad Holding to operate in corporate equity and capital increase activities.

A license for the promotion and underwriting of securities was granted to Square Forty Capital. Additionally, the Committee authorized Al Ahli Kuwait Leasing to expand its operations into factoring activities.

Orion has obtained a license to provide traditional consumer finance services. It is worth noting that the company submitted its application and incorporation documents prior to FRA’s recent decision to suspend new requests for incorporation of consumer finance companies.

The Committee granted preliminary approval to CIB Finance to add financial leasing to its existing activities. Furthermore, Pharaonic Securities Brokerage licensed to act as a receiving entity for Investment Fund subscriptions.

Finally, the Committee approved the registration of SAM Precious Metals in the Registry of Authorized Precious Metals Traders and Custodians. This addition marks the fourth company to be listed in this registry.

The Committee’s jurisdiction extends to ratifying amendments to company’s statutes and endorsing employee incentive and motivation schemes. Beyond corporate governance, it serves a critical supervisory function by advising on the suspension of General Assembly resolutions within the securities and consumer finance sectors.

The Committee is also empowered to authorize the addition of new activities and operational mechanisms for non-banking financial institutions (NBFIs). Its mandate includes overseeing regulatory transitions (legal umbrella shifts) for securities and consumer finance firms.

Additionally, the Committee governs licensing of branch networks – including openings, relocations, and closures- as well as reviewing liquidations requests and temporary or voluntary suspensions requests. It further oversees the registration, renewal, and de-registration of incorporation agents within the NBFI sector.

FRA Grants EGX 1st  License  to Operate Derivatives Trading  – Sunday 18 January 2026

Dr. Mohamed Farid: FRA  Chairman:

• Launching the derivatives market is a core pillar of the financial market development strategy.
• The license follows completion of the regulatory and legislative framework and coordination with the Stock Exchange and MCDR.
• A four-stage plan to ensure market organization and stability.
• Seven companies apply for futures brokerage licenses.
• The Authority’s dedicated efforts to formulate a strategic roadmap for the launch of Egypt’s derivatives market.

Dr. Islam Azzam,  EGX Chairman:

• Foreign investment funds signal readiness to enter the Egyptian market following the launch of derivatives market.
• System integration and connectivity milestones to be finalized within a month.

Financial Regulatory Authority (FRA), chaired by Dr. Mohamed Farid, has officially granted the Egyptian Exchange (EGX) the first license to operate a specialized futures exchange. This historic milestone underscores the Authority’s commitment to develop the capital market’s legislative and technical infrastructure, expanding the suite of available investment instruments, and fortifying risk management frameworks in accordance with global benchmarks.

Financial derivatives are financial instruments or contracts that derive their value from an underlying asset, such as stocks, price indices, or other assets defined by the Authority. These can take the form of futures contracts, options, swaps, or other standardized contracts.

Dr. Mohamed Farid, FRA Chairman emphasized that launching the derivatives market is a primary pillar of the Authority’s strategy aimed at building more advanced and sustainable financial markets. He added that FRA exerted significant effort over many months to reach a suitable formula for activating derivatives in Egypt, as they are essential global tools for risk management, market stability, and attracting a broader segment of investors.

FRA Chairman noted that the license was issued after completing the necessary regulatory and legislative frameworks and fully coordinating with the Egyptian Exchange (EGX) and the Misr for Central Clearing, Depository and Registry (MCDR). This ensures the application of the highest standards of governance, discipline, investor protection, and market stability.

Dr. Farid outlined a strategic four-stage roadmap, beginning with the launch of EGX30 index futures this March. Subsequent phases will introduce EGX70 index futures, followed by single-stock futures to provide granular hedging. The final stage will debut options contracts on stocks and indices, ensuring a stable, phased transition toward a well-regulated market and sustainable growth.

Futures contracts are standardized, binding agreements to buy or sell securities, price indices, or other financial instruments according to specifications prepared by the Exchange and approved by the Authority. Execution occurs at a future date based on an execution price agreed upon at the time the contract is initiated.

Dr. Farid stressed the implementation of an integrated risk management system in the derivatives market to mitigate systemic risks. He revealed that seven brokerage firms have already applied for licenses to practice futures brokerage, reflecting high demand and local investor interest in developing their investment tools.

Futures contracts represent a qualitative shift in deepening the market, increasing liquidity levels, and providing advanced financial tools that enable investors to hedge against price fluctuations. This improves pricing efficiency and market depth.

Key advantages include risk hedging, profit generation through price movements, the use of financial leverage, and better investment portfolio management.

Dr. Islam Azzam, EGX Chairman expressed his deep appreciation to Dr. Mohamed Farid for his tireless efforts to finalize derivatives launch. He noted that FRA and EGX held regular weekly meetings to coordinate details, including developing a proprietary internal trading program to expedite the process. He indicated that the technical link between firms and MCDR would be finalized within a month.

Dr. Azzam highlighted a surge in interest from foreign investment funds, prompting high-level meetings to discuss market entry and trading strategies. This interest underscores global investor trust in Egypt’s evolving market infrastructure and its commitment to provide advanced hedging and investment tools that align with international standards.

He added that the close collaboration between FRA and the EGX will facilitate the implementation of advanced risk management systems, ensuring market stability and protection of investor rights. This synergy positions Egypt on a path toward sustainable financial market growth, while significantly enhancing market depth and liquidity.

On the other hand,  specific risk management procedures applied by MCDR include membership requirements, initial margin, variation margin, settlement members’ contributions to the default fund (CCP guarantee account), and allocations from the Investor Protection Fund.

The resources of the Central Counterparty (CCP) Guarantee Account are utilized according to a specific hierarchy: starting with the contribution of the defaulting settlement member, followed by the contribution of the Clearing and Settlement Company, and the primary contributions of the remaining settlement members. This is further supported by allocations from the Investor Protection Fund, supplementary contributions from settlement members, and finally, the reserves of the Clearing and Settlement Company.

To better understand real estate futures contracts, imagine you anticipate a significant surge in property prices over the coming year. Instead of purchasing an apartment immediately, you enter into a Futures Contract to “lock in” the purchase of a unit one year from today at a fixed price of EGP 2 million. To secure this position and guarantee performance, you pay an Initial Margin

of EGP 200,000, with the remaining balance due only upon the contract’s maturity date. Consequently, if the price rises, you will have profited before the agreement is even executed. However, if the price drops, you will be obligated to purchase the apartment and thus incur a loss.