الهيئة العامة للرقابة المالية

FRA and Supreme Media Council Partner to Regulate Digital Platforms in Non-Banking Financial Markets  –  Wednesday 16 September 2026

• The Protocol Enhances Market Stability and Protects Investors from Deceptive Practices

Dr. Islam Azzam, FRA Chairman and Eng. Khaled Abdel Aziz, Chairman of the Supreme Council for Media Regulation (SCMR), have signed a Memorandum of Understanding (MoU) between both entities at the SCMR headquarters in Maspero.

This protocol falls within the framework of integrating state institutions’ efforts, activating ex-ante and ex-post oversight mechanisms and strengthening coordination between both regulatory bodies in areas of mutual jurisdiction. It establishes a joint coordination framework regarding digital platforms and applications that utilize trade names, logos or brand identifiers associated with non-banking financial markets or those that imply affiliation with entities licensed and regulated by FRA.

Under the terms of the agreement, the SCMR shall notify FRA and obtain its prior technical opinion before granting licenses or authorizing the launch of any digital platform or mobile application falling within the scope of this cooperation. In turn, FRA will review the platform’s name and activity to ensure it does not infringe upon the intellectual property rights, trade names or operations of FRA-licensed entities.

FRA will submit its binding technical opinion to the SCMR within 15 days of notification. This step ensures full compliance with governing laws, safeguards third-party rights and mitigates fraudulent practices that could mislead the public.

Furthermore, the MoU establishes a framework for continuous information exchange regarding digital applications to prevent unauthorized platforms from falsely claiming licensing by or affiliation with FRA or its regulated companies.

This partnership advances institutional synergy, fortifies the integrity of the digital financial ecosystem, protects the rights of licensed market participants and upholds public confidence in non-banking financial activities and services.

FRA Directives to Consumer Finance Firms: Restrictions on Precious Metals and Mandatory Rate Disclosure –  Wednesday 16 September 2026 

Dr. Islam Azzam,  FRA Chairman issued two directives to consumer finance companies restricting transactions in precious metal products and setting yield rates applied to all consumer finance products and services.

The first directive prohibits transactions involving gold bullion, gold jewelry and other precious metal products such as silver and platinum. FRA emphasized that these items do not fall under consumer goods and services eligible for financing under Consumer Finance Law No. 18 of 2020.

The decision rests on the premise that gold bullion and jewelry are investment vehicles rather than standard consumer items. Therefore, they fall outside the statutory framework governing consumer finance activities, a measure intended to preserve market stability and ensure transaction integrity.

The second directive obligates consumer finance companies to submit quarterly reports to FRA detailing interest rates and administrative fees on bank borrowings, alongside average yield rates and administrative charges levied on client loans. The directive requires submission of data starting from 2025.

FRA framed the measure as an effort to bolster transparency and corporate governance, aligning consumer finance oversight with standards applied to micro, small, and medium-sized enterprise (MSME) financing. The Authority noted that the framework aims to enhance regulatory efficiency while maintaining a balance between market expansion and consumer protection.

FRA Highlights Non-Banking Real Estate Financing Tools at ‘Builders of the New Republic’ – Tuesday 15 September 2026

Sally George, Assistant to Chairman:

• Diversification of Financing and Investment Instruments Enhances Real Estate Sector Capacity for Growth and Addressing Financial Risks and Challenges

Financial Regulatory Authority (FRA) participated in “Builders of the New Republic” conference, recently organized by the Afro- Asian Investors Union. The event was attended by Mr. Hassan Raddad, Minister of Labor; Ambassador Mohamed El-Orabi, Chairman of the Board of Trustees of the Afro-Asian Investors Union, former Minister of Foreign Affairs, and member of the Senate; alongside several ambassadors, heads and  representatives of Arab, African, and Asian federations, organizations, and institutions.

Representing the Authority, Ms. Sally George, Assistant to Chairman for Investment Funds, delivered a presentation during a panel session explaining the non-banking financial instruments and investment solutions available to support real estate sector development. She noted that the capital market offers a diverse range of financing mechanisms for real estate developers and mortgage finance companies, including the securitization of deferred receivables portfolios, sukuk issuances, and the vital roles played by mortgage finance companies, real estate investment funds and funds investing in deferred receivables.

She explained that securitization and sukuk transactions are subject to regulatory standards that ensure financing stability and sustainability. These include mandatory credit ratings of at least (BBB) updated annually, alongside regular FRA oversight of collections and timely dividend distributions to enhance investor protection and financing efficiency.

She further noted that the first two issuances dedicated to purchasing deferred receivables portfolios were executed for mortgage finance companies. She presented comparative statistics on the performance of real estate-related financing and investment tools over the past two years, reflecting a growing volume of available funding and investments.

She also highlighted legislative and regulatory developments enacted by  FRA since 2014 to strengthen the investment funds ecosystem. These initiatives aim to reduce costs for founders and investors, introduce greater investment and financing flexibility, and streamline administrative procedures. Key measures include allowing funds to borrow within specified percentages of the net asset value (NAV) of their units, simplifying procedures for expanding fund size, permitting installment-based subscription payouts for investment units, and streamlining enforcement procedures in cases of default—thereby supporting sustainable long-term capital needs.

The session addressed the unregulated real estate platforms offering fractional real estate investment, identifying it as a market challenge that necessitated regulatory intervention to stabilize markets and protect investor rights while sustaining innovation and investment opportunities.

In this context, Sally George detailed  FRA’s efforts to regulate this activity by restricting it to licensed, supervised entities operating digital real estate investment fund unit platforms. Governed by the Capital Market Law and the Law Regulating the Use of Financial Technology in Non-Banking Financial Activities, this framework creates a structured environment for fractional real estate investing while ensuring robust investor safeguards.

She emphasized that platforms licensed under FRA Board Decision No. (125) of 2025 do not function merely as matchmakers between buyers and sellers; they provide comprehensive post-investment services. These include providing mandatory disclosures to investors—such as semi-annual investment valuations conducted by independent FRA-registered real estate appraisers—and offering exit mechanisms that deliver higher levels of investor protection compared to many international benchmarks.

Additionally, the panel discussed structural challenges surrounding off-plan real estate project financing, including instances where developers divert funds from designated project purposes, leading to construction delays and missed delivery deadlines.

Addressing this issue, Sally George emphasized that investment funds serve a dual function—acting as an investment vehicle for investors and a financing mechanism for developers. She highlighted that  FRA has developed mechanisms allowing investors to pay for fund units in installments, where capital calls are tied directly to verified project completion milestones. This ensures tighter alignment between financial disbursements and actual construction progress.

She also reviewed FRA’s introduction of multi-issuance investment fund structures. Under this framework, each issuance maintains a segregated bank account dedicated to a specific project target, significantly improving fund governance and ensuring capital is strictly deployed for its intended purpose.