الهيئة العامة للرقابة المالية

FRA Issues First Investment Funds Performance Report for Q1 2026 – Tuesday 12 May 2026

• Net assets increased to more than EGP 410 Billion; individuals’ acquisition exceeds 74%

Dr. Islam Azzam, FRA Chairman:

• Fund performance highlights their vital role in strengthening the Egyptian economy’s resilience.
• These figures reflect growing public confidence in investment funds as a primary financial choice.

Financial Regulatory Authority (FRA) chaired by Dr. Islam Azzam has issued its first report on the performance of investment funds operating in the Egyptian market for the first quarter of 2026. The report reveals robust growth rates, reflecting the growing attractiveness of investment funds and increased demand for them as one of the most critical investment tools and options in the Egyptian market.

The report highlights that the net asset value (NAV) of investment funds rose to approximately EGP 410.6 billion by the end of March 2026, compared to EGP 316 billion at the end of December 2025. This surge was driven by the expansion of new fund launches, a growing investor base and the diversification of available investment products.

According to the report, the total number of investment funds operating in the Egyptian market reached 187 by the end of Q1 2026, up from 172 at year-end. This underscores the growth of the asset management industry and the expansion of financial institutions in offering diverse investment products tailored to various investor segments which is a development of exceptional importance in light of recent regional and global economic shifts.

The number of investment fund certificates also witnessed significant growth, reaching 31.4 billion certificates by the end of March 2026, compared to 20.3 billion at the end of December 2025. This serves as a clear indicator of rising investment awareness and a broadening base of participants in investment funds.

The report reveals that individuals continue to hold the largest share of fund certificates, accounting for 74.34%, while legal entities (companies and institutions) represent 15.98%. This underscores rising individual confidence in funds as secure investment vehicles subject to FRA’s full regulatory oversight.

Regarding the performance of different fund types, the report shows that EGP Money Market Funds led in terms of net asset value, reaching approximately EGP 276.5 billion, followed by Equity Funds with an NAV of EGP 56.4 billion. Notably, Precious Metals Funds recorded strong growth, with their NAV rising from EGP 5.1 billion at the end of 2025 to over EGP 10 billion by the end of Q1 2026, driven by sustained investor interest in instruments linked to precious metals.

The report indicates that several fund categories achieved competitive investment returns during the first quarter of the year. Precious Metals Funds recorded an average quarterly return of 20.37%, followed by Index Funds at 7.54% and Private Equity Funds at 7.21%.

Dr. Islam Azzam stated that the positive indicators achieved by investment funds during Q1 2026 confirm the significant resilience of the Egyptian economy despite international and regional tensions. Furthermore, these results highlight the growing attractiveness of the non-banking financial sector and its ability to provide diverse, secure investment tools that meet the needs of various investor segments.

He added that the Authority continues to develop the regulatory and legislative frameworks governing investment fund activities. This ongoing effort aims to enhance transparency and efficiency, protect investors’ rights, support innovation in non-banking financial products and services and expand the use of financial technology (FinTech).

To view the full report (Click Here)

FRA Amends Charitable Funds’ Regulations to Bolster Development Goals – Monday 11 May 2026

Dr. Islam Azzam – FRA Chairman:

• FRA aims to respond more efficiently to the needs of policyholders involved in charitable initiatives.
• This move gives funds more flexibility to handle redemption requests effectively.

FRA Board of Directors chaired by Dr. Islam Azzam, has issued Resolution No. 83 of 2026 updating the redemption regulations for charitable investment funds. This initiative underscores the Authority’s commitment to refining the regulatory landscape, optimizing liquidity management and protecting policyholders’ rights.

Charitable investment funds are specialized vehicles where all or part of the profits are directed toward financing charitable, developmental, or social initiatives. These funds play a vital role in supporting sustainable development goals and fostering community engagement.

Dr. Islam Azzam emphasized that these new amendments aim to provide greater flexibility in managing redemptions for charitable funds. This allows for a more efficient response to policyholders’ needs – particularly in cases involving increased redemption requests for charitable purposes – while maintaining fund stability and protecting the interests of all investors.

The amendment requires that redemptions be limited by the number of purchase orders received that day. If redemption requests exceed available purchase orders, the fund will apply a proportional allocation system to ensure all redemption requests are treated equally.

Furthermore, the amendment allows the fund’s prospectus or information memorandum to permit the execution of redemption requests that exceed purchase orders, rather than waiting for them to balance. This is subject to justification provided by the fund manager and approval from the fund’s Board of Directors or Supervisory Committee, granting funds enhanced flexibility in handling redemptions.

FRA Chairman noted that allowing redemptions to exceed purchase orders – under specific controls and approvals – equips fund managers with more flexible liquidity management tools. This is expected to bolster investor confidence in charitable investment funds and empower them to better achieve their investment and developmental objectives.

The Egyptian market currently hosts five charitable investment funds with a combined Net Asset Value (NAV) of EGP 1.1 billion. These funds are established under the Capital Market Law No. 95 of 1992 and its Executive Regulations. They operate under FRA ‘s supervision in accordance with Law No. 10 of 2009, which regulates non-banking financial markets and instruments.

This Resolution is part of FRA’s broader strategy to develop investment fund market and strike a balance between fund management flexibility and investor protection to ensure market stability and efficiency.

FRA Chairman & EPEA Discuss Enhancing Market Attractiveness – Monday 11 May 2026

Dr. Islam Azzam:

• Fostering entrepreneurship and Venture Capital is a top priority as a key driver of national economic growth.
• FRA is committed to strengthening the capital market’s role as an effective funding platform for companies.
• FRA remains open to new ideas to overcome obstacles and update regulatory and legislative frameworks.

Dr. Islam Azzam, FRA Chairman held an extensive meeting with members of the Egyptian Private Equity and Venture Capital Association (EPEA). The session brought together prominent business leaders, investment fund representatives, investment bankers, and experts in economics, law, and accounting. FRA Vice Chairman Mr. Mohamed El-Sayyad and senior officials participated in the meeting which was moderated by EPEA Chairman Mr. Ayman Soliman.

The meeting is part of a series of expanded sessions recently launched by FRA Chairman with key market stakeholders. Previous consultations have engaged investors, insurance companies, private pension funds, and firms specializing in mortgage finance, SME and microfinance, leasing, and factoring, as well as technical support professions. These efforts underscore FRA’s commitment to activating direct communication channels across the non-banking financial sector. This institutional dialogue aims to incorporate diverse perspectives and proposals to refine business environment, enhance competitiveness of regulated sectors, and drive investment-led economic growth.

During the meeting, Dr. Azzam emphasized that FRA places private equity and venture capital sector at the top of its priorities. He identified the sector as a primary engine for economic development, corporate financing, and entrepreneurship. He noted that the Authority is continuously updating legislative and regulatory frameworks to strike a vital balance between market stability and investor protection, while simultaneously enhancing Egypt’s attractiveness as a competitive investment destination.

He further stressed the importance of deepening the capital market’s role as an effective financing platform and providing diverse exit mechanisms to attract more local and foreign investment. Dr. Azzam reaffirmed FRA’s ongoing commitment to developing regulatory frameworks in line with international best practices to improve market depth and liquidity.

Highlighting recent performance, Dr. Azzam pointed to the significant growth achieved by the Egyptian Exchange (EGX) during the first quarter of 2026. Total trading value soared to over 6 billion EGP, marking a growth rate of 41.2% compared to Q1 2025.

Trading values and volumes witnessed significant growth during April 2026, with the total value of listed and unlisted securities reaching approximately EGP 2.198 trillion, compared to EGP 1.243 trillion in April 2025—a substantial increase of 76.9%. Additionally, market capitalization closed at approximately EGP 3.7 trillion by the end of April.

The number of newly registered investors (coded investors) surged by 215% during the first quarter of the current year compared to the same period last year. In April alone, approximately 64,000 new investors were registered, a 110% increase over the 31,000 registered in April 2025.

Dr. Islam Azzam highlighted Egypt’s significant leap in digital transformation and the integration of technology within non-banking financial activities. He urged investors to accelerate the adoption of financial technology (FinTech) across various investment activities, while leveraging the new legislative and regulatory frameworks recently introduced in insurance and finance sectors.

He emphasized the necessity of introducing innovative investment mechanisms and tools to diversify the market and meet the needs of various economic sectors. This, he noted, requires close cooperation between FRA and market stakeholders to raise public awareness of the importance of non-banking financial markets and to enhance the professional competence of personnel across the industry.

Dr. Azzam pointed to the growing participation of youth in various investment fields, most notably Gold Funds. Currently, more than 80% of fund certificate holders are under the age of 40. He noted that this trend reflects a strong appetite among new investors for innovative tools and underscores the necessity of integrating FinTech and continuous awareness campaigns.

FRA Chairman expressed FRA’s full openness to all proposals aimed at updating regulatory and legislative frameworks. He reaffirmed that the Authority’s goal is to enhance market depth and attractiveness, remove investment barriers and drive growth in private equity and venture capital activities in the coming period.

The meeting covered several key pillars regarding the investment environment, including a review of legal and regulatory frameworks from the perspective of service providers, legal consultants, and accountants.

Discussions also focused on the balance between maintaining the attractiveness of listing on the capital market and encouraging companies to go public (IPOs).

Stakeholders explored opportunities to activate the secondary market for debt instruments for individual investors, the role of market makers in supporting fixed-income trading efficiency, and methods to increase securitization operations to benefit financing companies and related activities.

EPEA members presented legislative proposals and incentives to increase listing rates on the Egyptian Exchange (EGX) and boost trading. The discussions addressed why exit strategies through the stock exchange remain limited and explored ways to stimulate these exits, particularly following the successful introduction of Special Purpose Acquisition Companies (SPACs) in the Egyptian market.

Ayman Soliman, Chairman of EPEA, underscored the importance of ongoing coordination with FRA, praising the Authority’s openness to discuss challenges and listen to market insights.

Attendees praised FRA’s collaborative approach and its rapid response to market concerns. They specifically noted the Authority’s dedication to incorporating stakeholder perspectives throughout the drafting and finalization of new regulations.