الهيئة العامة للرقابة المالية

FRA Chairman Dr. Islam Azzam Welcomes Outstanding Summer Interns – Saturday 1 August 2026

• Students praise the practical knowledge and professional insights gained all over the whole month.
• FRA Chairman lectures on derivatives and market developments, leading interns through a live trading session.

Dr. Islam Azzam:

• Expanding financial literacy to bridge academic theory with real-world application.
• Building capacity and supplying the non-banking financial sector with qualified talent.

Dr. Islam Azzam, FRA Chairman welcomed outstanding students from the inaugural cohort of the Summer Internship Program for Egyptian University Students. Launched by the Authority this year, the initiative aligns with its strategy to promote financial literacy, engage youth in non-banking financial sectors, enhance their professional competencies and qualify them for the labor market through hands-on training across FRA sectors.

FRA Chairman engaged in an open, constructive dialogue with the students, alongside Dr. Mohamed Abdelaziz, Assistant to FRA Chairman, and Ms. Dalia Mounir, Supervisor of HR Central Department. The interns expressed deep appreciation for the practical knowledge gained during their tenure, where they obtained first-hand insight into FRA’s mandate, regulatory authority and supervised sectors – most notably capital markets, insurance, and non-banking financing. Additionally, they explored modern digital transformation trends using financial technology (fintech) and FRA’s pioneering role in fostering technical innovation to stimulate market growth, elevate customer experience and safeguard investor interests.

The students praised the rich knowledge acquired through full immersion in the Authority’s daily operations. They commended the program’s structure, which assigned them to departments closely aligned with their academic majors and facilitated rotations across multiple departments to maximize learning. This approach enabled them to bridge theoretical knowledge with practical execution while understanding key regulatory frameworks and challenges.

For his part, Dr. Islam Azzam emphasized that FRA remains deeply committed to expand financial awareness and educational initiatives by linking academic concepts to real-world applications for students and young professionals – whether through “I Invest” platform or university-focused training programs.

FRA Chairman commended student’s discipline, high performance and clear dedication to skill development and continuous learning. He reaffirmed that investing in human capital and building market-ready talent is a core mandate for FRA to elevate the efficiency of non-banking financial markets and maximize their contribution to support the national economy.

He highlighted ongoing efforts to upgrade the Authority’s IT infrastructure and fully integrate digital networks with all federations and companies operating under its supervision. This initiative aims to enhance data accuracy, streamline real-time information flow and accelerate the extraction of precise digital indicators. In turn, this will enable financial institutions to develop products tailored to evolving market trends and investor needs.

Dr. Islam Azzam also discussed recent developments in the capital market, involving students in a live Egyptian Exchange (EGX) trading session. He provided a comprehensive explanation of futures trading fundamentals on the EGX, marking a pivotal milestone in advancing the financial derivatives market by offering investors more efficient tools for risk management and portfolio diversification.

Furthermore, he reviewed FRA’s latest steps toward activating the Short Selling mechanism, noting that a revised regulatory framework aligned with best international practices in disclosure, transparency and risk management will be issued within days. This step is expected to boost liquidity, enhance market efficiency and elevate the overall attractiveness of the Egyptian capital market to both domestic and international investors.

At the conclusion of the inaugural summer cohort, Dr.  Islam Azzam participated in presenting certificates to the interns. In his closing remarks, he highlighted that the growing participation of youth in capital markets and investment funds necessitates doubling efforts to enhance financial literacy and disseminate reliable information, empowering them to make well-informed investment decisions.

On the other hand, Dr. Mohamed Abdelaziz, Assistant to FRA Chairman, emphasized that university outreach remains a core pillar of the Authority’s financial awareness strategy. He announced plans to scale up educational initiatives in the coming period, adding that every student trained at FRA acts as an ambassador within their academic and personal circles, sharing knowledge about the Authority’s role in regulating markets, fostering growth and safeguarding investor rights.

FRA’s Summer Internship Program experienced unprecedented demand this year, drawing 7,480 applicants – more than double the previous year’s total. The Authority conducted awareness lectures for 441 participants, followed by qualification exams for 333 candidates, culminating in hands-on practical training for 228 interns across three separate, month-long cohorts.

The program welcomed students specializing in economics, statistics, accounting, insurance, actuarial science, finance, computer science, media and public relations, and legal studies—providing them with immersive, real-world experience to accelerate their career readiness.

FRA Chairman Leads Expanded Meeting on New Short-Selling Regulations – Wednesday 29 July 2026

The meeting convened leaders from the Egyptian Exchange (EGX), MCDR, brokerage firms and investors to review the final steps toward launching short selling mechanism.

Dr. Islam Azzam – FRA Chairman:

• Short selling will boost the Egyptian Stock Exchange’s appeal and drive market liquidity.
• The new regulatory frame explicitly defines all parties’ roles with full system integration.
• Designed to draw in foreign funds and younger retail investors.
• Success hinges on widespread investor awareness and market education.
• FRA reaffirms its commitment to align with market stakeholders before issuing non-banking financial rules.

Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, convened an expanded meeting at its headquarters to discuss the new regulatory framework for Short Selling on the Egyptian Exchange scheduled for release in the coming days.

The meeting was attended by Mr. Omar Radwan, EGX Chairman ; Dr. Khaled Serry Seyam, Chairman of Misr for Central Clearing, Depository and Registry (MCDR); Mr. Mohamed Al-Sayyad,  FRA Vice Chairman. In addition to Mr. Mohamed Sabry, EGX Vice Chairman; Eng. Hisham Mabrouk, Managing Director of MCDR; along with senior leaders and technical teams from FRA, EGX, capital market stakeholders and brokerage firm representatives.

Dr. Islam Azzam emphasized that discussions surrounding the new short-selling framework reflect the Authority’s commitment to maintain continuous dialogue with market participants. He noted that listening to diverse perspectives and proposals helps refine regulatory frameworks by consensus, enhancing overall market readiness for upcoming developments and boosting the Egyptian market’s appeal to both domestic and foreign investors.

Short selling is a trading mechanism that enables investors to trade securities when anticipating a decline in a stock’s price. Under this mechanism, an investor borrows shares from their owner, sells them at the current market price and repurchases them later at a lower price to return them to the original owner.

The mechanism operates through a Lender (the original owner of the securities) and a Borrower (the investor borrowing the securities to sell and rebuy based on downward price expectations), allowing the borrower to profit from the price differential between the sale and repurchase based on the investor’s expectations of market movements and stock price fluctuations.

When anticipating a price decline in a specific security, an investor may borrow shares from an eligible lender and execute a market sale, backed by a required cash margin.

Upon price drop, the borrower repurchases the shares, realizes a net profit after deducting borrowing costs and returns the securities to the original owner.

Conversely, if shares’ price rises and the borrower wishes to limit their losses, they repurchase the shares at a loss and return them to the lender, incurring additional borrowing costs.

In both scenarios, the lender earns a return on lending their shares while retaining all other ownership rights and benefits associated with the security.

During the meeting, participants reviewed the latest developments in finalizing the regulatory and operational infrastructure for the short-selling mechanism. The objective is to ensure a fully integrated rollout that aligns with international best practices regarding transparency and governance, while guaranteeing continuous connectivity among all market participants to expand and deepen the market.

Attendees also reviewed key components of the new regulatory framework governing short selling. The framework aims to streamline procedures for all investor segments and drive adoption upon its official launch on the Egyptian Exchange.

For his part, Dr. Islam Azzam emphasized that the success of short selling requires intensifying market awareness and promoting investment literacy among prospective borrowers and lenders alike, ultimately driving market efficiency and boosting liquidity.

FRA Chairman further commended the pivotal role played by Misr for Central Clearing, Depository and Registry (MCDR) in establishing the Central Lending System. The system documents all operational stages and procedures—specifically displaying available lendable securities by name, quantity, lending duration, and acceptable rate, while maintaining comprehensive records of borrowing transactions, lenders, borrowers, and transaction closures—serving as the core technical foundation for the new system’s success.

He added that the new regulatory framework will boost participation in short selling among foreign and younger investors. It expands available investment avenues, enables more efficient portfolio management, creates greater opportunities to generate returns, capitalizes on price movements, and allows reinvestment of profits into new opportunities.

FRA Chairman explained that the updated rules ensure rapid responsiveness to market shifts, driving efficient risk management and investor protection. This is achieved through full integration between brokerage firms and MCDR, explicitly defining the duties and responsibilities of each party at every stage of short-selling transactions—from stock lending availability to final settlement.

Regarding the insights and proposals shared by brokerage representatives and investors during the session, Dr. Islam Azzam stated that FRA takes all market perspectives into account when drafting or amending non-banking financial sector regulations to proactively resolve potential operational challenges.

Concluding the meeting, FRA Chairman noted that coordination remains ongoing with the EGX, MCDR, and market participants to launch short selling after years of anticipation and technical and legal deliberations. Highlighted as one of the most successful instruments in regional and global capital markets, Dr.  Islam Azzam urged brokerage firms to swiftly build technical and operational readiness to seamlessly integrate into the new system as soon as possible.

FRA Approves Real Estate Crowdfunding – Wednesday 29 July 2026

• • The Authority mandates each company individually to abide by financing controls for individuals and legal entities, while applying financial solvency standards.
  • The Authority emphasizes the necessity of adhering to concentration ratios and the legislative and regulatory frameworks of the activity.

   Dr. Islam Azzam – FRA Chairman:

  • Allowing crowdfunding aims to curb the adverse impacts of rising prices on market competitiveness.
  • FRA is keen to balance business growth with effective market controls to safeguard the rights of all market participants.

  Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, has authorized real estate financing companies to extend credit to clients through a “crowdfunding” mechanism. Under this system, multiple companies can jointly participate in financing clients seeking to purchase high-value properties, provided that each participating firm strictly adheres to all governing rules and regulations for real estate financing.

  Dr. Rehab Taha, Assistant to FRA Chairman, addressed an official letter to the Egyptian Real Estate Finance Federation approving crowdfunding operations following a formal request from the Federation. The request cited sector challenges facing both companies and market participants—most notably rising unit prices, limited capital bases for certain firms and constrained lending capacities relative to their statutory capital limits.

  FRA outlined several key mandates that real estate financing companies must follow when engaging in crowdfunding mechanism. In this respect, each company must independently adhere to core lending rules for individuals and institutions under Real Estate Finance Law No. 148 of 2001, its executive regulations, and FRA resolutions. Furthermore, each lender must individually meet financial solvency standards outlined in FRA Board Resolution No. 158 of 2020.

  Moreover, participating lenders must execute real estate financing agreements using standard contract templates issued by FRA, duplicating co-lender data fields within the template where applicable. Companies must ensure they do not individually breach statutory concentration limits for residential financing to natural persons, nor statutory limits for non-residential financing to natural or legal entities.

  Under FRA Board Resolution No. 111 of 2015, financing granted to natural persons for residential purposes may not exceed 90% of the property’s value—with the exception of leasing arrangements (ijara), which are permitted up to 100%. Total financing extended to a single investor, their spouse and minor children is capped at 15% of the company’s capital base, while monthly installments cannot exceed 50% of the investor’s income.

  For non-residential purposes, the resolution caps financing at 80% of property value and limits exposure to a single investor to a maximum of 30% of the company’s capital base.

  Dr. Islam Azzam, FRA Chairman affirmed that the Authority remains dedicated to ongoing dialogue with non-banking financial federations to stay attuned to market shifts and emerging trends. He stressed that FRA aims to maintain a delicate balance between fostering industry growth, ensuring market stability, protecting consumer rights and maintaining strict compliance with legislative frameworks.

  FRA Chairman noted that approving real estate crowdfunding directly addresses challenges related to price inflation, reduced competitiveness and restricted financing avenues for certain corporate and retail segments. He reiterated that these transactions remain fully governed by established legal frameworks, mandating absolute compliance with solvency and regulatory standards.

  Notably, statistics for the first quarter of 2026 revealed a drop of over 21% in the number of new real estate finance clients, alongside a 17.5% increase in total financing value compared to the same period in 2025. Residential units accounted for approximately 78% of the total funds granted.