الهيئة العامة للرقابة المالية

FRA Hosts Workshop to Strengthen Administrative Capabilities of Private Insurance Funds – Saturday 16 May 2026

• Broad engagement from funds’ representatives on modern economic resilience and conflict-of-interest safeguards.
• Islam Azzam – FRA Chairman: Enhanced governance and transparency drive efficiency and maximize returns.

Financial Regulatory Authority (FRA) chaired by Dr. Islam Azzam, in collaboration with the World Bank, hosted a high-level workshop titled “Capacity Building for Private Insurance Fund Boards.” The event witnessed extensive participation from board members and representatives of various private insurance funds.

This workshop aligns with FRA’s strategic commitment to bolster governance efficiency and elevate professional standards of fund managers in parallel with digital transformation and major updates introduced by the Unified Insurance Law (No. 155 of 2024) to disclosure systems and regulatory oversight.

Mark Davis, a World Bank Senior Financial Sector Specialist and global pension governance expert, facilitated the sessions. The workshop attracted a broad audience of industry leaders, providing a platform for dynamic discussion , sharing practical insights on refining management frameworks and maximizing member returns within a volatile economic climate.

The agenda highlighted the core components of private insurance fund governance, emphasizing global management standards and the importance of monitoring and adapting to economic volatility to maximize member benefits. Key topics included board operational controls, conflict-of-interest prevention and implementation of robust risk management and compliance frameworks designed to bolster the financial and administrative stability of each fund.

Dr. Islam Azzam emphasized the Authority’s commitment to support training and capacity-building programs for professionals within the non-banking financial sector. He highlighted the vital role of private insurance funds in providing essential insurance and social benefits, noting that the financial and administrative stability of these funds directly impacts the long-term security of their members.

Dr. Azzam further noted that embedding governance and transparency within these funds bolsters management efficiency and streamlines decision-making. He emphasized that these efforts balance stakeholder interests and safeguard their rights, aligning with the Unified Insurance Law and recent FRA mandates designed to modernize investment oversight, ensure solvency, and maximize returns.

Currently, Egypt’s private insurance fund sector comprises over 660 active funds serving nearly 4 million members. These funds provide critical savings, insurance, and supplementary pension benefits, playing a pivotal role in supporting state efforts to expand social safety nets and enhance the financial stability of Egyptian families.

FRA Chairman Highlights Insurance Innovation at Closing Ceremony of ‘Insurtech Challenge 2026’ at AUC –  Saturday 16 May 2026

Dr. Islam Azzam:

• FRA Sandbox bridges the gap between regulation and innovation.
• We are committed to digital transformation, FinTech and evolution of regulatory frameworks.

Dr. Islam Azzam, FRA Chairman participated in the closing ceremony of the Insurtech Challenge 2026. The initiative, a collaborative effort between the AUC Venture Lab and FRA Regulatory Sandbox, featured high-level participation including, Eng. Ahmed Khalifa, Executive Director of the Regulatory Sandbox; Dr. Ayman Ismail, Founder and Director of the AUC Venture Lab; and Mr. Alaa El-Zoheiry, Chairman of the Insurance Federation of Egypt (IFE), alongside a prominent cohort of entrepreneurs and FinTech leaders.

This participation underscores the Authority’s commitment to fostering innovation within non-banking financial activities and strengthening integration between regulators, academic institutions, and market players. Such collaboration aims to develop practical technological solutions that address the insurance sector’s needs while keeping pace with the rapid shifts in the digital economy.

During his remarks, FRA Chairman emphasized that strategic partnerships between the Authority’s Regulatory Sandbox and business accelerators/incubators serve as an effective model for bridging the gap between innovation and regulatory oversight. He explained that FRA’s role extends beyond supervision and regulation to actively nurturing the innovation ecosystem, enabling startups to test their solutions in a flexible and secure regulatory environment through the Sandbox.

Dr. Islam Azzam further noted that the Authority remains dedicated to supporting initiatives that promote financial literacy, digital transformation, and the evolution of regulatory frameworks. These efforts are designed to align with global trends, contributing to a more efficient, inclusive and sustainable non-banking financial sector that balances innovation with sound regulation.

Eng. Ahmed Khalifa, Executive Director of FRA’s Regulatory Sandbox, noted during a panel discussion that the event provides a unique platform blending regulatory expertise, market knowledge and entrepreneurial spirit. He highlighted its role in transforming promising ideas into viable business models – particularly in the insurance sector – where technology offers significant opportunities to enhance service efficiency and expand the beneficiary base.

Additionally, Dr. Ayman Ismail, the Abdul Latif Jameel Endowed Chair of Entrepreneurship, associate professor at the Onsi Sawiris School of Business and the founding director of the AUC Venture Lab, noted that the Insurtech Challenge serves as a vital nexus for regulators, corporations, and academia. He emphasized that by aligning innovative solutions with regulatory frameworks, this collaboration transforms visionary ideas into impactful, market-ready projects that accelerate growth within Egypt’s insurance and FinTech ecosystems.

The challenge drew applications from 68 teams, with 22 initial proposals receiving preliminary acceptance. Over the course of the three-day event, 17 teams presented their innovative solutions to a judging panel composed of regulators, insurance industry leaders, and technology experts. Following a rigorous evaluation, five finalists were selected to move forward. The event also featured a dedicated panel discussion exploring innovative insurance projects and strategies to scale FinTech applications within this vital sector.

The three-day program offered an intensive series of workshops, technical mentorship sessions and collaborative meetings between FRA’s Regulatory Sandbox and insurance companies. These sessions were designed to support participating teams in refining their business models, ensuring they aligned with both regulatory requirements and actual market demands.

The event concluded with the announcement of three winning teams who presented groundbreaking models for enhancing insurance services through technology. Their projects focused on improving customer experience, streamlining service delivery and boosting the operational efficiency of insurance firms, while introducing digital solutions to reach new market segments.

FRA Statistics: Non-Banking Financial Portfolios Reach EGP 417 Billion by the end of 2025 – Thursday 14 May 2026

• 64 Million clients benefit from FRA-regulated activities, with financing contracts exceeding 9.8 million and a default rate below 3%.
• All companies and entities across various sectors are now mandated to implement “Basel III” standards and adhere to “Creditworthiness” principles.
• Capital market indicators show an upward trend, with strong performance from investment funds led by “Precious Metals.”
• Growth continues across insurance, finance and factoring.

The latest statistics released by the Financial Regulatory Authority (FRA) chaired by Dr. Islam Azzam, reveal significant growth across Egypt’s non-banking financial sector (NBFS). Despite emerging market uncertainty and economic volatility driven by rapid regional and international developments -including global interest rate shifts and fluctuating capital flows – the sector has demonstrated remarkable resilience.

The data indicates that total financing granted by FRA-regulated entities reached approximately EGP 1.4 trillion by the end of 2025. This figure represents roughly 54% of the total financing provided by the Egyptian financial sector to the private sector, households, and individuals.

The NBFS currently comprises 2,532 regulated companies and entities, serving a massive client base of over 64 million. These institutions and their branch networks span the entire republic, maintaining a strong presence in underserved and high-need areas.

Regulatory Oversight Drives Sector Growth

By the end of 2025, the total value of non-banking financial portfolios reached EGP 417 billion, with the number of financing contracts exceeding 9.8 million. Notably, default rates remained exceptionally low, recorded at less than 3%.

Dr. Islam Azzam explained that these positive developments are a direct result of FRA’s rigorous regulatory role. By ensuring the integrity and resilience of this vital sector while balancing the interests of citizens and investors, FRA bolsters stakeholder confidence and enhances market depth and stability.

Dr. Azzam further highlighted the mandatory implementation of Basel III international standards across all non-banking financial activities. Under FRA Board Resolution No. 137 of 2025, all companies and entities are required to adhere to these standards when calculating capital adequacy, financial leverage, liquidity ratios and individual or sectoral concentration limits.

The same resolution mandates that non-banking finance companies adhere to ‘Creditworthiness’ standards prior to granting credit. These standards aim to verify compliance with technical benchmarks that ensure the quality of the credit portfolio and the credit standing of clients before disbursement, as well as the financial solvency required to guarantee repayment capacity. This process further includes reviewing credit policies, conducting background checks, performing risk analysis, and inspecting concentration limits and ratios.

Dr. Azzam added that this approach stems from the Authority’s conviction that the “pre-granting” stage serves as the primary line of defense against non-performing loans (NPLs). This ensures that financing decisions are predicated on sound technical foundations rather than mere quantitative expansion, thereby bolstering investor confidence in the non-banking financial sector.

Furthermore, should a finance company seek to securitize its future financial rights, it is required to undergo a technical and regulatory audit of its securitization portfolios by FRA to ensure asset quality and safeguard bondholders’ rights. The Inspection and Oversight Sector, in coordination with the Corporate Finance Sector, conducts a rigorous review of the “future financial rights portfolio”—comprising assets such as auto installments, real estate mortgages, or consumer loans—prior to granting final approval for the issuance of securitization bonds. Additionally, the process entails more audit requirements to ensure stringent compliance with technical and legal standards. These include the verification of legal documentation for the assignment of rights by the transaction’s legal counsel, alongside the submission of an independent auditor’s report

FRA also conducts inspections of licensed custodians to monitor outstanding securitization issuances, ensuring the seamless repayment of the assigned portfolios backing the issued bonds.

Notable Surge in Capital Market Performance

In the capital markets sector, the number of operating entities reached 978 by the end of 2025, comprising 253 listed companies, 538 operating firms and 172 investment funds.

Capital market indicators reflected improved liquidity levels, an expanding investor base and increased engagement with various market mechanisms. This progress was underpinned by strict adherence to regulatory frameworks, disclosure requirements and governance standards. Consequently, the Egyptian Exchange (EGX) indices recorded significant growth from the beginning of the year until April 30, 2026.

The benchmark EGX30 surged by 26.56%, while the EGX35-LV index rose by 25.6%. Additionally, the EGX30 Capped increased by 25.4% and the EGX33 Shariah index grew by 22.42%.

Regarding market valuation, total market capitalization climbed to approximately EGP 3.668 trillion by the end of April 2026 – an increase of roughly EGP 669 billion (22.3%) compared to December 2025. This rise reflects the increasing value of listed companies and a heightened investment appetite within the securities market.

On the other hand, trading values and volumes have witnessed clear growth since the beginning of the year until the end of April. Daily trading values exceeded EGP 13 billion, while total trading for listed shares during this period reached approximately EGP 579 billion, marking a 62% growth rate compared to the same period last year.

Furthermore, trading value of bonds and treasury bills rose by approximately 50%, reaching EGP 7.654 trillion during the first four months of 2026. This momentum was driven by increased activity from both individual and institutional investors, alongside the diversification of available investment instruments.

During the first four months of the current year, the number of newly registered investors (coded investors) more than doubled, reaching 228,000 compared to approximately 83,000 during the same period last year.

This surge is attributed to the issuance of executive regulations for Law No. 5 of 2022 which governs the use of Financial Technology (FinTech) in non-banking financial activities. The law facilitates the establishment, licensing, and approval of entities wishing to conduct non-banking financial activities via FinTech solutions, significantly streamlining the onboarding process for new investors.

Positive Indicators for Investment Funds

FRA statistics for the first quarter of 2026 reveal a strong performance across the investment fund sector. Notably, precious metals investment funds (Gold and Silver) recorded the highest returns, reaching 20.37% quarterly. These funds provide a strategic gateway for investors to gain exposure to precious metals through small-scale capital outlays.

Meanwhile, Index Funds and Private Equity Funds recorded returns of 7.54% and 7.21%, respectively, during Q1 2026. These quarterly figures reflect annual returns of 30.16% and 28.84%, respectively, excluding dividend distributions.

The volume of investment fund units also witnessed significant growth, rising to 31.4 billion units during the same period, compared to 20.3 billion units at the end of December 2025. This surge underscores a rising level of investment awareness and a broadening participant base within the investment fund ecosystem.

The Insurance Sector: A Strategic Transition Under the “Unified Law”

The insurance sector is currently navigating a pivotal transitional phase following the enactment of the Unified Insurance Law No. 155 of 2024.  FRA Statistics reveal that the sector now comprises 169 active entities, including insurance companies, brokerage firms, loss adjusters, and insurance consultancy firms, in addition to 6 insurance pools.

By the end of 2025, the number of policyholders rose to approximately 15 million. Total Premiums reached EGP 130.8 billion, compared to EGP 106.7 billion at the end of 2024—a 22.5% increase. Furthermore, total claims paid by insurance companies amounted to EGP 64.4 billion at the end of 2025, compared to EGP 46.6 billion in 2024, marking a 38.2% increase.

Private Insurance Fund sector grew to 671 funds serving 5 million members by late 2025. Total investment value saw a 20% upswing, climbing to over EGP 201 billion from EGP 168 billion in the previous year.

Meanwhile, the number of Government Insurance Funds reached 6 funds, serving 30 million members. The total value of their investments stood at approximately EGP 2.1 billion, compared to EGP 1.5 billion at the end of 2024.

Significant Growth in the Non-Banking Financial Sector

The non-banking financial sector has witnessed a notable growth, driven by recent legislative developments regulating various financing activities and the Authority’s regulatory resolutions. These measures introduced frameworks for conducting activities through Financial Technology (FinTech) and mandated that licensed companies provide diverse insurance coverages. Furthermore, the resolutions established governing conditions and rules for market practice, required financial solvency standards, and defined supervisory and oversight protocols. They also encompassed the regulation of client-provided guarantees, alongside the introduction of collaborative mechanisms with relevant federations to combat fraud, unauthorized liquidations, and other harmful practices or violations.

By the end 2025, mortgage Finance sector demonstrated robust expansion, with 25 licensed companies extending approximately EGP 42.7 billion in financing to 115,000 clients—a significant 67.5% increase from EGP 25.5 billion in 2024. Similarly, the Financial Leasing contract values expanded by 50.8%, totaling EGP 179.2 billion across 44 licensed entities.

Consumer Finance sector maintained its upward trajectory with 48 active licenses, providing over EGP 96.3 billion in funding 10.8 million beneficiaries, marking a 57% growth rate over the previous year.

On the other hand, microfinance sector comprises 23 companies, 494 associations, and one micro-leasing firm. Additionally, it includes 11 companies, one association, and one civil foundation dedicated to Small and Medium Enterprises (SMEs). By the end of 2025, the total value of financing granted to SMEs and micro-enterprises reached EGP 106.9 billion, compared to approximately EGP 95.8 billion the previous year—reflecting a 24% growth rate. Conversely, the number of beneficiaries witnessed a slight decline from 3.7 million by the end of 2024 to 3.6 million by the end of last year.

Despite a strategic suspension of new licenses for consumer and microfinance, the sector maintained an upward trajectory through 2025.

The total value of secured movable assets reached EGP 4.3 trillion by the end of 2025. Total registrations reached 248,000, marking a significant 39.7% annual growth

Meanwhile, factoring activity witnessed substantial momentum in 2025, supported by 41 licenses. The number of active clients (assignors) grew by approximately 30% compared to 2024, while the total value of factored receivables climbed to EGP 132.2 billion, up from EGP 74.6 billion in 2024—achieving a remarkable growth rate of 77.3%.

Dr. Islam Azzam underscored the Authority’s commitment to bolster non-banking financial activities through strategic insurance integration. By establishing a comprehensive protection umbrella, the Authority aims to provide market participants with tailored insurance solutions designed to meet the specific risk profiles of diverse sectors. Additionally, he emphasized the activation of investor protection funds as a vital mechanism for enhancing risk management efficiency.

The Authority also continues its efforts to raise levels of financial literacy among market stakeholders and participants. These efforts focus on defining the benefits and risks of non-banking financial activities, hosting community dialogues to foster transparency, trust and market stability, and exchanging expertise to combat harmful practices and resolve emerging obstacles within the various sectors.