الهيئة العامة للرقابة المالية

FRA Regulatory Sandbox Signs 3 Cooperation Protocols with Leading Technology Firms to Boost Innovation – Monday 17 November 2025

• On the sidelines of Cairo ICT 2025: Alliances with “Liquid C2,” “Cyber Force,” and “JRNY” to enhance cybersecurity, cloud computing, innovation and startups.
• Farid: “Our objective is to establish a flexible regulatory environment that fuels startup growth while utilizing the latest digital solutions to safeguard all stakeholders.”

In a move reflects the accelerating pace of digital transformation in the Non-Banking Financial Sector (NBFS), the Financial Regulatory Authority (FRA) announced, during its participation in Cairo ICT 2025, that “FRA Sandbox” Regulatory Lab signed three strategic cooperation protocols with a selection of leading technology companies specialized in the fields of cybersecurity, cloud computing and advanced data solutions.

These alliances reinforce FRA’s mission as a catalyst and enabler of technology. The goal is to build a sophisticated, flexible regulatory ecosystem capable of accommodating innovative business models. By providing a safe testing environment, FRA ensures the growth of startups while simultaneously safeguarding the data and rights of all stakeholders.

“Liquid C2,” “Cyber Force,” and “JRNY” were selected to boost four key areas: cloud computing, security readiness, innovation, and support for startups

FRA Sandbox signed a protocol with “Liquid C2” (Middle East and North Africa), represented by Major General Badr Khairy, Chairman of the Regional Board and CEO Sherif Shaltout. This agreement focuses on cybersecurity and cloud computing.

Similarly, the protocol with “Cyber Force” was signed with Engineer Tamer Raafat, CCO, and Dr. Ahmed Amin, Founder and CEO, representing the company. This partnership also targets collaboration in cybersecurity and cloud computing.

The third protocol was signed with “JRNY,” focusing on innovation and startups. The agreement was formalized by Ahmed Seddik, Co-founder and in the presence of its CEO, Dalia Aboul-Yazid.

Commenting on the partnerships, Dr. Mohamed Farid, FRA Chairman affirmed that these initiatives are integral to a comprehensive strategy aimed at cultivating an innovation-friendly environment.

Dr. Farid asserted that technology is now the backbone for market stability and growth, no longer a mere auxiliary tool. Through FRA Sandbox, the Authority is transforming from a traditional regulator into a key partner in shaping the future. This is achieved by providing a safe testing environment for startups to experiment boldly, which simultaneously gives FRA the necessary insight to formulate precise and effective legislative frameworks.

FRA Chairman concluded by affirming that collaboration with specialized, leading technology firms is an essential step to further enhance the structure of the non-banking financial sector, ultimately serving the broader national economy.

FRA Chairman Highlights NBFS Digital Transformation Progress to PM at Cairo ICT – Monday 17 November 2025

Dr. Farid :

• The Authority adopts a “Smart Regulation” model to accelerate digital transformation and build an economy driven by innovation and knowledge.
• The transition is no longer a luxury, but a necessary bridge to build a strong and sustainable national economy.
• 300,000 digital verification operations processed. 250,000 electronic contracts executed to date.
• 25 non-banking financial institutions (NBFIs) are now offering their services digitally. FRA has registered 6 outsourcing companies to support the sector’s technological needs. 2 FinTech startups licensed for establishment.
• FRA Established electronic linkage with securitization and insurance firms, creating a comprehensive database that significantly boosts supervisory and regulatory efficiency.
• FRA Chairman inspected the booths of Misr Insurance and GIG Insurance and listened to presentations on their efforts to digitize their insurance services at the exhibition.

Dr. Mohamed Farid, FRA Chairman emphasized the Authority’s rapid and consistent progress toward adopting and implementing the “Smart Regulation” model. This technology-centric approach is viewed as the primary catalyst for accelerating digital transformation, which, in turn, is key to build an economy driven by innovation and knowledge. Dr. Farid made this assertion while presenting a comprehensive review of the non-banking financial system’s digitization efforts to Prime Minister Dr. Mostafa Madbouly at the Cairo ICT 2025.

Dr. Farid underscored the Authority’s core belief that digital transformation is no longer optional but an “essential bridge” required to build a strong, sustainable national economy. He highlighted Egypt’s considerable national assets, including its innovative youth and ambitious ideas, arguing that establishing a pro-innovation regulatory environment is not merely a reformative measure but a national necessity.

FRA Chairman detailed the institutional roadmap for this transformation, which began in February 2022 with the issuance of Law No. 5. This landmark legislation formally regulates the use of technology within non-banking financial activities, marking the clear starting point for the sector’s digital development. This legislative journey was completed in June 2023 with the introduction of a complete package of executive resolutions. This includes resolution No. 139 provided the comprehensive framework for the sector’s technological infrastructure, focusing on critical elements such as data security, governance, risk management and general infrastructure deployment. In addition to resolution No. 140 addressed the foundational tools of digitization, covering the use of digital verification, digital identity, electronic contracts and digital registers.

That is besides resolution No. 141 requiring the creation fintech outsourcing registry.

 FRA Chairman added that in November 2023, resolution No. 163 established and operationalized FRA Regulatory Sandbox. This crucial tool provides a secure, isolated environment where innovative financial technologies can be tested before full market deployment. This was closely followed in January 2024 by resolution No. 268, permitting the establishment of FinTech startups with a minimum capital of just EGP 15 million. Dr. Farid characterized this move as a “clear declaration that the Authority adopts regulation supportive of creativity.”

FRA Chairman highlighted two primary regulatory tools supporting this transformation before the Prime Minister: the operational FRA Regulatory Sandbox for controlled innovation testing and FRA FinTech Forum platform, which serves as a vital point of communication connecting innovators, existing companies and policymakers.

Central to this approach is the new philosophy of “Smart Regulation,” where the Authority views failure as a natural, necessary stage in company development. This model moves beyond traditional supervision, focusing instead on effective empowerment for sustainable growth and innovation.

Dr. Farid pointed out that the “Startup License Initiative” proved to be a pivotal success in fostering a new generation of FinTech companies. By setting the required capital at a realistic EGP 15 million, the initiative significantly enhanced market entry flexibility. This capital requirement is specifically tailored to suit the characteristics of Small and Medium Enterprises (SMEs), recognizing their vital role as the backbone of the real economy.

Dr. Farid highlighted that the digital infrastructure established by FRA has produced unprecedented operational figures, including the execution of 300,000 digital verification operations and the issuance of 250,000 authenticated digital contracts. He emphasized that these metrics are foundational to foster an “Economy of Trust,” characterized by high transparency and streamlined procedures.

Reviewing the digital evolution across the market, Chairman noted that 25 non-banking financial companies from a total of 79 are currently offering their services fully digitally, with an additional 54 companies actively meeting the necessary digital requirements. Furthermore, 6 outsourcing companies have been registered at the new registry. Additionally, FRA Chairman detailed the current sectoral distribution of digital services adoption within the non-banking financial sector, noting that the Capital Market dominates with 65% of the digital services. Financing accounts for the next largest share at 29%, while the Insurance sector currently stands at 6%.

Dr. Mohamed Farid affirmed that these developments signal a radical shift in the philosophy of regulation. He articulated a forward-looking vision where the economy is managed not by traditional tools, but by future-focused principles: an economy driven by ideas before capital, stimulating legislation before traditional supervision, digitization before paper and innovation before rigid procedures.

To bolster regulatory efficiency, the Authority achieved full electronic data linkage with both insurance companies and securitization companies (specifically for portfolio data), significantly enhancing digital monitoring and supervision capabilities. Moreover, FRA recently approved the establishment of the first REIF digital platform marking a major step in utilizing digital solutions for financing and investing in the real estate sector.

FRA Chairman concluded his address by reiterating that digital transformation is the core bridge to a modern economy. He emphasized Egypt’s potential, asserting that Egypt possesses the youthful energy required to lead a new wave of economic transformation. Dr. Farid stressed the Authority’s ongoing commitment to continuously develop non-banking financial legislation, thereby ensure the creation of a strong, innovation-fostering environment.

On the sidelines of FRA’s participation in the Cairo ICT events, Dr. Mohamed Farid visits the booths of Misr Insurance and GIG Insurance. During these visits, he received briefings on the substantial efforts being undertaken by both companies to digitize and streamline their respective insurance services.

FRA Revokes Licenses for 258 Microfinance Associations (Category C) Due to Breach of Regulations – Sunday 16 November 2025

• The Authority confirmed absolute non-compliance as these entities failed to provide financing services, invalidating their license’s core purpose.
• The violating entities refrained from submitting regulatory reports to the Authority, did not adhere to the credit inquiry system and lost their membership in the Egyptian Union of Microfinance.

Dr. Mohamed Farid, FRA Chairman:

• The Authority proceeded only after using all formal warning and communication channels with the non-compliant entities.
• Entities were granted a grace period to comply, but their lack of response necessitated intervention to safeguard dealing parties’ rights and market stability.
• The Authority aims to regulate the market and support serious compliant institutions.
• FRA consistently work to foster a strong, flexible and sustainable microfinance sector, supporting operating entities rather than penalizing them.

In a decisive regulatory step, FRA Board of Directors chaired by Dr. Mohamed Farid, issued resolution No. 258 of 2025, revoking microfinance licenses of approximately 258 civil associations and Institutions (Category C). This action was taken to enhance market discipline, protect clients and boost the efficiency and transparency of the microfinance sector. The revocation followed an extended period of monitoring and inspection which confirmed these entities had fundamentally failed to comply with the regulating rules and requirements governing microfinance, specifically Law No. 141 of 2014 and Law no. 201 of 2020.

This resolution aligns with FRA’s continuous strategy to strengthen the stability of non-banking financial activities, safeguard the rights of all dealing parties and ensure the market is efficient enough to support the most vulnerable segments of society. This enforcement action is expected to positively impact Egypt’s broader economic and social development goals.

Currently, there are 754 licensed microfinance entities registered with FRA and they are classified by the size of their financing portfolios. The distribution is as follows: 23 entities fall under Category (A) (over EGP 50 million), 33 are in Category (B) (EGP 10 million to EGP 50 million), and the remaining 698 are Category (C) (EGP 10 million or less).

Dr. Farid affirmed that the Authority resorted to license revocation only after exhaustive measures. The violating entities were granted sufficient time to rectify their status and meet licensing requirements and FRA used all channels of communication and warning. The entities’ lack of response necessitated this intervention to safeguard the sector’s stability and protect the rights of clients.

The regulatory inspection found that license revocations were mandated by the entities’ complete absence of activity and neglect of duty. Their failure to provide financing services to targeted groups nullified the license’s fundamental purpose.

The violations also included a gross breach of regulatory requirements by continually refraining from submitting periodic reports and financial statements. This prevented the Authority from assessing their financial positions and monitoring their performance.

The regulatory review confirmed that the violating entities were not integrated into the microfinance sector’s infrastructure. Specifically, they ignored adherence to the credit inquiry system and had lost their essential membership in the Egyptian Microfinance Federation. Both adherence to the credit system and Federation membership are crucial requirements for practicing the activity and ensuring market discipline and accountability.

Dr. Farid clarified that the Board’s philosophy is not punitive, focusing instead on supporting and building a strong, flexible and sustainable microfinance sector. He emphasized that the presence of undisciplined or inactive entities actively harms the sector’s reputation and introduces risks that could severely threaten its stability.

FRA Chairman clarified that this measure is expected to regulate the market and enhance support for serious institutions committed to professional rules and regulatory controls. This action will strengthen the protection of clients’ funds and contribute to raising levels of financial and investment inclusion.

Furthermore, FRA emphasized its ongoing commitment to provide technical support and specialized training for compliant associations, in partnership with relevant entities. This assistance aims to enable their expansion and the absorption of new client segments. The Authority affirmed it will not hesitate to take any additional actions necessary to guarantee market discipline and safeguard the rights of all stakeholders.