Press Releases
FRA Chairman Delivered a Keynote Speech at “Egypt Day” Hosted by London Stock Exchange (LSE) – Wednesday 16 July 2025
- A comprehensive dialogue with the attendees to explore the latest developments and prospective investment opportunities within the non-banking financial sector.
Key Insights from Dr. Farid’s Address:
- FRA is seriously committed to enhance business environment within the non-banking financial sector. This strategic focus aims to bolster the trust of both domestic and international investors in its financial markets.
- Investment climate derives credibility directly from the trust of domestic investors in the reliability of policies frameworks and operational environment.
- FRA’s strategic objectives are designed to align with government efforts to execute economic development plans, particularly by boosting private sector’s contribution to growth rates.
- Digital transformation is essential for enhancing financial inclusion, with FRA consistently prioritizing governance, risk management and data security to safeguard stakeholders’ rights.
- Market stability stands as the foremost objective for any financial sector regulator.
- FRA bolsters trust among non-banking financial market participants and investors through ongoing reforms that enhance market efficiency and depth.
- Developing the Egyptian Accounting Standards is pivotal in enabling investors and financing entities to make well-informed decisions, relying on accurate and transparent financial data.
- Refining valuation methodologies for startups will foster their growth and facilitate access to necessary funding.
- Establishing a regulated Voluntary Carbon Market enhances Egypt’s position in the sustainable finance landscape, attracting vital climate-related investments.
- Diversifying financial and investment instruments and products is key to empower stakeholders and investors to meet their diverse needs and achieve their financial goals.
- FRA’s consistent aim is to establish stable, flexible and clear legislative and regulatory policies to boost the competitiveness of non-banking financial markets.
Dr. Mohamed Farid, FRA Chairman delivered a keynote address at “Egypt Day” event hosted by the London Stock Exchange. His participation was a key part of an official Egyptian delegation’s promotional tour, organized by the British Egyptian Business Association (BEBA) and aptly titled “Egypt’s New Era… Investment Opportunities.” Dr. Farid also engaged in an insightful open dialogue with investors, moderated by Yasmin Saleh, Editor-in-Chief of Zawya Arabic. The esteemed delegation included prominent figures such as Ahmed Kouchouk, Minister of Finance; Ramy Aboul Naga, Deputy Governor of the Central Bank of Egypt (CBE); Ghada Nour, Assistant Minister of Investment and Foreign Trade. In addition to Dr. Mohamed Abdel Aziz, Assistant to FRA Chairman; Noha Khalil, Acting CEO of the Sovereign Fund of Egypt (SFE); Heba El Serafi, Vice Chairman of the Egyptian Exchange; Dr. Tarek Seif, Executive Director of the Financial Services Institute ( FRA’s training arm); and various other leaders from governmental bodies.
During his presentation, Dr. Farid underscored FRA crucial role in implementing Egypt’s “Vision 2030” strategy, highlighting efforts to unleash private sector growth through a robust economic reform agenda. A central theme of his address was FRA’s commitment to digital transformation, recognizing it as a fundamental pillar for strengthening the non-banking financial sector’s contribution to the national economy. This commitment extends to strategic initiatives such as formulating robust regulations for financial technology (FinTech) to foster both protection and innovation within the market, refining Accounting Standards to enhance transparency and facilitate precise valuations, spearheading the launch of Egypt and Africa’s inaugural regulated and supervised voluntary carbon market and progressing towards the enactment of a unified insurance law.
Dr. Farid stressed FRA’s serious dedication to reform the non-banking financial sector’s business environment. This initiative aims to
enhance trust of both local and foreign investors in these markets. He further clarified that the credibility of Egypt’s investment climate begins with the local investor’s trust in its policies and operational landscape.
He emphasized that FRA’s foremost objectives include ensuring market integrity and stability, protecting stakeholders’ rights, promoting digitalization and simplifying procedures wherever possible. Dr. Farid concluded by stating that developing markets and introducing innovative products that offer investment opportunities in the non-banking financial sector will remain a constant priority, coupled with continuous efforts to cultivate a highly conducive environment for investment and growth within the sector.
Dr. Farid underscored that all of FRA’s objectives are designed to bolster the government’s efforts in executing economic development plans and achieving growth targets. A key focus within these plans is to increase private sector participation in driving economic growth.
He further elaborated that financial technology (fintech) and digital transformation are foundational for boosting national savings rates and enhancing financial, investment and insurance inclusion. This, in turn, will lead to greater domestic investment, enabling the economy to be more self-reliant on funding rather than depending heavily on foreign capital. Therefore, fintech is seen as crucial for building a more resilient and integrated economy.
Dr. Farid also highlighted FRA’s issuance of regulatory frameworks for the listing and trading of Special Purpose Acquisition Company (SPAC) shares, a strategic move to help companies secure essential growth financing. Following this, FRA received and approved the first application to establish a SPAC in Egypt. This SPAC is structured as a venture capital firm with the specific aim of acquiring companies in the non-banking financial services and fintech sectors, including various financial services and payment platforms and has already been listed on the Egyptian Exchange.
He reaffirmed FRA’s commitment to implement a comprehensive electronic system built on three core components: electronic identity verification, digital contracts, and linking identity data with mobile phone numbers. This initiative has already spurred significant progress, with recent FRA data revealing over 200,000 new accounts in gold investment funds opened in just one year, attracting more than EGP 2 billion in investments. This is particularly noteworthy as gold funds were not a common market product previously.
Dr. Farid also discussed FRA’s ongoing work to finalize legislative and regulatory frameworks that stimulate investment. In the realm of crowdfunding, FRA has developed a flexible model designed to adapt various crowdfunding regulations to modern financial instruments. The Authority is also preparing to issue rules governing the operation of digital platforms for investing in real estate investment funds, confirming that the initial step will involve issuing specific regulations for these funds.
He concluded by emphasizing that market stability is the primary goal for any financial sector regulator. To achieve this, FRA is continuously working to enhance the trust of stakeholders and investors in non-banking financial markets, ensuring this commitment progresses hand-in-hand with ongoing reforms aimed at increasing overall market efficiency and depth.
Dr. Farid further elaborated on the comprehensive development of Egyptian Accounting Standards in the recent past. This significant update began by shifting asset valuation to fair value instead of book value, specifically impacting real estate investment and equity. The revised standards now incorporate a revaluation model for fixed and intangible assets and a fair value model for investment property. This ensures that companies’ financial statements accurately reflect the fair value of their assets, empowering all businesses to present a true financial position and operational performance. Such accuracy is crucial for making sound financing and investment decisions.
FRA Chairman also highlighted the Authority’s proactive steps in supporting entrepreneurship, innovation and financial technology, fostering a nurturing regulatory environment for all startups. A key initiative was the issuance of startup valuation standards. FRA developed new methodologies that allow for valuations better suited to the unique business models and growth stages of startups, particularly before they achieve significant revenue or sales. This critical move helps these companies secure the necessary funding for growth, expansion and development, ultimately enabling them to meet their objectives.
Dr. Farid then turned to the regulated and supervised Voluntary Carbon Market, launched by FRA in August 2024. The regulated and supervised Voluntary Carbon Market, launched by FRA in August 2024, plays a pivotal role in reducing carbon emissions. This new market is set to attract concessional climate financing from international institutions, channeling funds to projects dedicated to lowering their carbon footprint. This initiative not only solidifies Egypt’s unique position in the sustainable finance market but also enhances the country’s overall appeal for climate-related investments. He pointed out that without easier access to financing, sustainable projects would remain largely unattainable. Citing the African Development Bank, he noted that the African continent faces an annual climate finance gap exceeding $100 billion. Despite the importance of government funding, it remains insufficient, with the private sector’s contribution to climate finance flows in Africa currently not surpassing 14%, a stark contrast to the global average of approximately 49%.
Finally, Dr. Farid underscored that diversifying financial and investment tools and products is essential for empowering stakeholders and investors to meet their diverse needs and achieve their financial goals. He reiterated that FRA’s perpetual objective is to establish stable, flexible and clear legislative and regulatory policies to consistently enhance the competitiveness of Egypt’s non-banking financial markets.
Dr. Islam Azzam Delivers Keynote at 4th Annual Education Investment Summit – Tuesday 15 July 2025
Dr. Islam Azzam – FRA Vice Chairman:
- Insurance is a strategic partner in protecting both human and material components of the educational process, thereby ensuring the future of coming generations.
- Listing shares on stock exchanges and issuing bonds are among the most vital financing solutions for the sector.
- Direct funding to education companies has reached EGP 2 billion through securitization bond issuances.
- Consumer finance and financial leasing offer essential alternative funding, empowering all participants in the educational process to effectively carry out their roles.
Dr. Islam Azzam, FRA Vice Chairman delivered the opening keynote address at the 4th Annual Education Investment Summit. Held under the theme “Investing in Education: Between Pluralism, Integration and Regional Expansion”, the summit served as a crucial platform to explore how to leverage the diverse financing solutions and services available within non-bank financial sector. Throughout its sessions, the summit focused on the latest developments and mechanisms for cooperation among all stakeholders to boost investment in education. It also highlighted promising opportunities for collaboration between Egypt and various Arab and foreign countries. The event witnessed strong attendance from key figures, including representatives from the Ministry of Finance and the Central Bank, as well as a distinguished group of Egyptian and international private sector investors.
In his address, Dr. Azzam highlighted various financing solutions provided by sectors under FRA’s supervision and oversight. He underscored their collective role in robustly supporting and significantly enhancing investment within the education sector. At the absolute forefront of these critical sectors, he particularly emphasized the insurance sector, which, he stressed, has definitively emerged as a strategic partner in safeguarding both the invaluable human and essential material components of the entire educational process, thereby playing a fundamental role in securing the prosperous future of successive generations.
Dr. Azzam further elaborated on the insurance sector’s profound and multi-faceted contribution. He specifically detailed the vital role of the Government Insurance Fund for School Students and Al-Azhar students. This crucial fund provides an essential and comprehensive protection that cover students against a spectrum of critical risks, including, but not limited to, accidental death, natural death, various physical injuries and any resulting total or partial disability.
FRA is proactively developing and issuing new legislation to govern specialized insurance products. This includes crucial insurance solutions aimed at ensuring families can continue to cover education expenses in the unfortunate events of death or disability, through programs like family education insurance. FRA is also committed to provide health insurance services for students at all educational levels and insuring educational institutions against various operational risks.
Furthermore, FRA’s Vice Chairman highlighted the Authority’s dedication to enhance specialized academic education. This involves forging agreements between key players in the insurance market and various universities and educational institutions. A prime example is the collaboration between the Insurance Federation of Egypt and universities to develop actuarial education, preparing students specifically for the demands of the insurance sector, all under the direct patronage of FRA.
Regarding the capital market sector, Dr. Azzam affirmed that listing and offering shares on the stock exchange provide a wide array of solutions and opportunities that enable companies to achieve their strategic goals. He specifically pointed to securitization bonds and sukuk (Islamic bonds) as vital financing mechanisms accessible through the securities market, emphasizing that even unlisted companies can leverage these tools. Additionally, he noted that recently developed accounting standards assist companies in re-evaluating their assets at market value.
Dr. Azzam particularly emphasized future cash flow securitization bonds, describing them as a crucial and promising financing instrument for the education sector. These bonds are designed to provide essential liquidity, facilitating the funding of expansion projects and the construction of new educational facilities. Moreover, they play a key role in diversifying funding sources and lowering costs, directly bolstering efforts to enhance and improve the overall quality of education.
Egypt has witnessed a notable surge in securitization bonds between 2022 and 2024, particularly those backed by future cash flows. The education sector was a major beneficiary, with three issuances for educational institutions alone amounting to approximately EGP 2 billion.
FRA Vice Chairman also highlighted how non-bank finance solutions like financial leasing can empower the education sector. For instance, institutions can lease essential buildings and equipment. Financial leasing further extends to funding student transportation, offering flexible medium-term repayment periods typically ranging from three to five years.
Dr. Azzam further noted that consumer finance products empower students by facilitating payment for tuition fees, books and stationery. This support extends across all educational levels, from basic and university education to postgraduate studies and professional certificates in various fields. Ultimately, these solutions significantly enhance access to high-quality education for a wider student base and cultivate a stronger culture of continuous learning.
FRA Chairman Attends Panel Discussion Titled “Corporate Governance as a Catalyst for Business Growth” – Monday 14 July 2025
Dr. Mohamed Farid – FRA Chairman:
- Corporate governance is a fundamental pillar for business growth and sustainability.
Dr. Mohamed Farid, FRA Chairman recently addressed a pivotal panel discussion hosted by the American Chamber of Commerce in Egypt. The session titled “Corporate Governance as a Catalyst for Business Growth,” convened a distinguished group of experts from the legal, investment and sustainable development sectors. It featured a distinguished panel including Dr. Hany Sarie-Eldin, Founder and Managing Partner of Sarie-Eldin & Partners Legal Advisors; Reem El Saady, Regional Manager for the SMEs Finance and Development Program at the European Bank for Reconstruction and Development (EBRD). In addition to Dr. Sherifa El-Sherif, Executive Director of the National Institute for Governance and Sustainable Development; and Ahmed El Gendy, Co-founder and Managing Director of Tanmeya Capital Ventures. The panel was moderated by Ghada Hammouda, Chief Sustainability and Marketing Officer at Qalaa Holdings.
Dr. Farid provided a comprehensive look at the evolution of corporate governance in Egypt, noting its framework began taking shape in 2004. This initiative, drawing heavily from OECD principles, led to the landmark issuance of Egypt’s first Corporate Governance Code in 2005, spearheaded by the Egyptian Institute of Directors.
FRA Chairman stated that corporate governance transcends mere regulatory compliance; it is a crucial strategic instrument for elevating institutional performance and fostering enduring, sustainable growth. He underscored FRA’s notable success in significantly expanding the reach of governance implementation. This expansion now extends beyond merely listed companies on the Egyptian Exchange to encompass all approximately 3,500 non-bank financial institutions under FRA’s supervision. This includes, but is not limited to, private insurance funds, microfinance companies, entities dedicated to financing small and medium-sized enterprises (SMEs), and all other stakeholders operating within the non-bank financial services landscape.
Dr. Farid asserted that FRA has taken concrete and impactful executive measures to solidify this commitment. He highlighted the mandatory requirement for female representation on company boards and the collaborative launch of a database with the American University in Cairo, which identifies qualified women for board positions. Furthermore, FRA has mandated that companies provide comprehensive Environmental, Social, and Governance (ESG) and Task Force on Climate-related Financial Disclosures (TCFD). To ensure the efficacy and integrity of these disclosures, Dr. Farid revealed that FRA is developing a unified methodology for evaluating and classifying company reports, with the overarching aim of enhancing disclosure quality and promoting greater transparency.
In a testament to FRA’s dedication to support the green economy, Dr. Farid outlined several key initiatives. These include the issuance of a clear classification system for sustainability bonds, encompassing both green bonds and transition bonds. The Authority has also established precise standards for the formation of green investment funds and has opened avenues for ESG rating agencies to commence operations within Egypt.
These collective efforts recently culminated in a significant announcement: FRA’s establishment of Egypt’s first regulated voluntary carbon market. Operating under the stringent oversight of capital market regulatory authorities, this innovative market is designed to empower carbon emission reduction projects to issue verified and certified carbon credits. These credits will then be traded on a regulated digital platform, serving as a powerful magnet for both domestic and international investors. By purchasing these credits, investors not only support climate action but also provide additional revenue streams for the implementers of these critical projects, thereby directly bolstering Egypt’s national drive towards achieving carbon neutrality.
Dr. Mohamed Farid stated that the upcoming phase will involve extensive and collaborative discussions concerning the implementation of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards S1 and S2. Dr. Farid underscored the critical importance of adhering to the proportionality principle when applying these standards. He extended an invitation to all stakeholders, with a particular emphasis on the American Chamber of Commerce, to actively engage in shaping a comprehensive roadmap.