الهيئة العامة للرقابة المالية

FRA Directs Government Insurance Funds to Start Investing in Open-Ended Funds – Sunday 7 December 2025

• FRA seeks to boost returns on government insurance funds by investing via Stock Exchange open-ended funds.

Dr. Mohamed Farid:

• Regulating Government Insurance Funds’ investments is essential to maximize returns.
• Every pound in governmental insurance funds is a public trust belonging to citizens, and it is our duty to preserve and maximize its return.
• The Funds must be managed in the best interest of beneficiaries, adhering to top standards of investment, governance and risk management.
• The resolution mandates Funds with over EGP 100 million in assets to invest 5% to 20% of total assets in listed equities via open-ended investment funds.
• A six-month compliance grace period has been granted. As of June 30, the total investment volume of these Funds stood at EGP 2.1 billion.

In a first-of-its-kind regulatory step aimed at boosting the efficiency and management of government insurance funds, FRA chaired by Dr. Mohamed Farid, issued a resolution mandating these funds to invest in open-ended funds.

The resolution mandates that Funds exceeding EGP 100 million in investments must allocate between 5% and 20% of their total assets to listed equities. Investment in any single open-ended fund must not surpass 5% of the government fund’s assets or 10% of the open-ended fund’s net asset value (NAV), whichever is lower. The Authority set a 6-month grace period for compliance, with the possibility of extension.

Dr. Mohamed Farid asserted that regulating these investments is essential to maximize returns and enhance management efficiency. This move is part of a comprehensive vision to strengthen the Funds’ capacity to achieve their core insurance and social objectives.

Government insurance funds are distinct from social insurance (pensions). Established by state decree and supervised by FRA, these funds protect specific groups – benefiting approximately 29 million people – from risks typically declined by insurance companies or those the government chooses to manage directly.

Dr. Farid added: “These Funds must be managed in the best interest of beneficiaries, adhering to top standards of investment, governance and risk management.”

FRA Chairman explained that every pound in government insurance funds is a public trust belonging to citizens, and their duty is to preserve and maximize its return. He stressed that these decisions safeguard beneficiary rights and guarantee Funds’ ability to meet their obligations.

He affirmed that the future of citizens’ insurance services relies on the professional management of these assets, noting that any improvement in investment return directly translates into an enhanced capacity for the Fund to fulfill its commitments.

He highlighted that deepening coordination between the Capital Market and the Insurance Sector is now a fundamental pillar for improving the investment performance of all insurance funds. This is achieved through strategic partnerships that enable the diversification of financial instruments and expand opportunities for safe investment.

FRA registers approximately six government insurance funds covering diverse sectors, including custody risks, postal services, commercial fishing vessel insurance, fast transport vehicles accidents and insurance/care for Al-Azhar students.

The total investment volume of government insurance funds reached EGP 2.1 billion as of June 30, 2025. These assets are distributed across various channels, including money market and fixed-income funds, unlisted equities, current accounts, treasury bills and bank deposits.

These efforts align with the Authority’s integrated approach to enhance the competitiveness of the non-banking financial sector and ensure professional fund management, benefiting both the State and the beneficiaries.

On the other hand, FRA mandated private insurance funds last February to allocate between 5% and 20% of their assets to invest in open-ended funds that invest in listed equities.

The Authority also required insurance companies to invest at least 5% of their free funds in open-ended funds that invest in listed equities

FRA Chairman Delivers Keynote at EGX Opening, Celebrating Egytrans-Nasco Acquisition; Joined by Deputy PM and Ministers of Investment, Planning , Supply and EGX Chairman – Thursday 4 December 2025

Dr. Mohamed Farid:

• The acquisition is a direct outcome of FRA-led structural reforms and amended EGX listing rules.
• Unprecedented infrastructure development opened wider investment horizons for EGX transport stocks.
• The development of the Capital Market is consistent with the Egyptian state’s vision to support the private sector and enhance the overall business environment.
• We call upon companies to proceed with more merger and acquisition (M&A) deals in the coming period.
• The Capital Market serves as the main pathway for establishing a genuine middle class by enabling cumulative savings.
• The EGX is now a key platform supporting economic entities with broader financing and development opportunities.

Dr. Mohamed Farid, FRA Chairman delivered a keynote speech at EGX opening trading session today. The event, which was attended by several ministers and high-ranking officials, celebrated the successful completion of Egytrans’ acquisition of the National Company for Sea Transport and Services (NOSCO).

The event witnessed the participation of several prominent figures, including Lieutenant General Engineer Kamel El Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport; and Hassan El Khatib ,Minister of Investment and Foreign Trade, Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, and Dr. Sherif Farouk , Minister of Supply and Internal Trade). Also in attendance were key financial sector leaders including Dr. Islam Azzam – EGX Chairman, Dr. Khaled Serry Seyam – MCDR Chairman, Mr. Ashraf Negm – Managing Director of the National Investment Bank. In addition to Dr. Hashem El Sayed – Assistant to the Prime Minister and CEO of the State-Owned Companies’ Unit, alongside Mr. Mohamed Sabry – Vice Chairman of the EGX, Mr. Maged Shawki – Chairman of Egytrans and numerous leaders from FRA and EGX.

FRA Chairman stressed that the acquisition of NOSCO by Egytrans is more than just an investment or takeover operation; it is clear evidence of the extensive efforts taken by the Financial Regulatory Authority and other relevant bodies to implement structural reforms that have successfully enhanced investment climate and overall business environment.

He further added that the deal serves as a prime example of the capital market’s growing role in boosting corporate expansion capabilities, improving competitiveness and facilitating entry into new growth phases. He concluded by noting that the market has become a pivotal platform for supporting economic entities and providing diverse avenues for financing and development.

Furthermore, the deal reflects the unprecedented development achieved in the transport, logistics, and storage sectors since 2014. This progress has significantly improved Egypt’s global competitiveness ranking and opened wider horizons for private sector expansion.

Dr. Farid commended the State for the unprecedented infrastructure boom achieved recently under H.E. Lieutenant General Kamel El Wazir’s leadership. He asserted that these projects are the cornerstone of the current renaissance in the transport and logistics sector, which has positively impacted the sector’s performance on the Egyptian Exchange.

He explained that the comprehensive development of road networks, ports and logistics zones has not only contributed to facilitating trade movement and improving the efficiency of supply chains, but it has also unlocked broader prospects for industrial and investment growth. This development has empowered companies to expand and elevate their competitive capabilities in both local and regional market.

FRA Chairman indicated that the acquisition is a direct result of efforts to develop and regulate the capital market’s listing rules. These efforts are aligned with the state’s direction to boost the private sector’s role, improve the ease of doing business, support more sustainable economic activities, and ensure that all segments of society benefit from the fruits of development.

Dr. Farid elaborated that the global economy’s rapid changes demand constant preparedness and flexible visions to secure the future of nations and companies. He affirmed that the capital market is now more than a trading platform. It is a comprehensive system that ensures stability, supports expansion and establishes strong principles of governance and transparency. This is in addition to its vital role in attracting investment and offering tax incentives to listed companies.

He further added that the capital market serves not only corporations but also acts as a primary tool for protecting citizens’ futures through gradual savings and disciplined investment. Citizens benefit from a wide array of investment instruments introduced by FRA, including equity, gold and real estate funds, Exchange-Traded Funds (ETFs), Private Equity and Venture Capital funds and Special Purpose Acquisition Companies (SPACs). All these tools are managed by licensed investment managers to ensure the highest levels of protection for these savings.

Dr. Farid highlighted the significant importance of increasing the number of listed companies, recognizing this as a key driver for market activation. He noted that the regulatory reforms implemented recently – including amendments to listing, offering and trading rules, as well as the development of an integrated digital infrastructure – are expected to attract more companies and further enhance market efficiency.

He also indicated that the coming period will witness the introduction of new mechanisms and instruments designed to boost liquidity and activity levels. These include financial derivatives, short selling and market maker activities.

FRA Chairman confirmed that the market’s performance over the recent period reflects the success of the taken efforts. The Exchange has registered a rise in market capitalization, a noticeable increase in the number of new investors and growth in the number of listed companies alongside an improvement in their market values, in addition to the evolution of trading volumes and values. He asserted that this success strengthens the capital market’s role in supporting economic growth, protecting savings, and enhancing sustainable development.

Concluding his remarks, Dr. Farid emphasized that the non-banking financial sector, spearheaded by the capital market, focuses on two vital objectives: first, financially empowering citizens through cumulative savings to secure their future; and second, cultivating a resilient middle class by securing Egyptian families. He stressed that the integration of all non-banking financial instruments ultimately serves one mission: delivering a more stable, secure and resilient life for every citizen.

At the conclusion of the event, Dr. Islam Azzam, EGX Chairman honored Dr. Mohamed Farid in recognition of his significant efforts in developing the capital market.

FRA Revokes 260 ‘Additional’ Microfinance Licenses for Legal and Regulatory Violations – Wednesday 3 December 2025

• FRA has canceled 518 licenses, all assigned to non-governmental associations and institutions Category (C).
• The Authority’s inspections revealed that the violating entities were neither actively providing microfinance nor submitting mandatory financial reports.

Dr. Mohamed Farid:

• Building a strong non-banking financial sector requires standardizing regulatory records, eliminating non-compliant firms, and supporting compliant institutions.
• The digitalization of the sector critically depends on the availability of accurate data and metrics concerning the size and performance of its activities.
• Our goal is to build a highly efficient market capable of delivering critical financing to the most vulnerable people.

In the framework of the Financial Regulatory Authority (FRA)’s efforts chaired by Dr. Mohamed Farid, to enhance the discipline and efficiency of the microfinance sector, FRA Board of Directors issued a new resolution to revoke the licenses of 260 non-governmental associations and institutions classified under Category (C). This action follows proven violations of the legal and regulatory controls governing the activity, bringing the total number of revoked licenses to 518.

FRA had previously issued a similar resolution on November 16^th to revoke the licenses of 258 non-governmental associations and institutions (Category C) due to non-compliance with the regulatory controls for practicing microfinance activity.

Continuous inspections conducted by the Authority on entities under its supervision, as part of its strategy to raise market efficiency, revealed that the 260 Category (C) microfinance institutions had completely failed to conduct operations and provide any financing services to the target groups. Furthermore, they showed persistent failure to submit mandatory periodic reports and financial statements, which prevented the Authority from assessing their financial status and monitoring performance.

Dr. Mohamed Farid, FRA Chairman commented that these measures are essentially a restructuring aimed at ensuring the sector’s evolution. He stressed that non-adherence to regulatory controls hinders market efficiency and necessitates the Authority’s intervention.

He asserted that the Authority aims to accelerate the digitization of the sector to ensure data quality and facilitate supervisory monitoring. Dr. Farid warned that the presence of entities failing to send regulatory reports will negatively impact market efficiency, thereby threatening  desired development and growth.

FRA Chairman affirmed the Authority’s primary commitment is to the financial empowerment of the most vulnerable groups. To achieve this, the FRA actively seeks to support and strengthen institutions that demonstrate a responsible and fully transparent ability to deliver financial inclusion. This targeted support is designed to enhance the capacity and operational efficiency of compliant institutions.

Dr. Farid highlighted that the Authority will dedicate resources to provide intensive technical support and advanced training programs in collaboration with the Egyptian Microfinance Federation. This is aimed at enabling serious institutions to lead the next phase of non-banking financial expansion. He concluded that  FRA’s philosophy is rooted in enhancing sector efficiency and building a strong, resilient and sustainable market.

It is noteworthy that the license revocation is strictly limited to the microfinance activity and does not affect the legal entity status of the associations or their other community activities authorized by the Ministry of Social Solidarity.

Dr. Farid called upon the associations subject to the resolution to continue their developmental role and redirect their efforts towards their other community fields of work, such as health, education and social solidarity. He urged their effective participation in the state’s development plans and initiatives, emphasizing that the Authority appreciates the role of NGOs in Egypt and that the cancellation of a financial license does not diminish the importance of their other societal functions.

He pointed out that the Authority did not resort to this measure until after granting the non-compliant associations a sufficient period to rectify their status and meet licensing requirements and after exhausting all means of communication and warnings without any response. This decisive intervention was necessary to preserve market stability and protect the rights of stakeholders.

He affirmed that the Authority, in cooperation with the Egyptian Microfinance Federation and partner entities, will continue to provide technical support to serious associations and institutions, thereby enhancing their operational capacities and supporting the establishment of a strong, disciplined and sustainable sector.

It is worth mentioning that the Authority’s official register now includes 494 licensed microfinance associations and institutions. These entities are distributed by the size of their financing portfolios as follows: category (A) includes 23 associations with portfolio value exceeding EGP 50 million. Category (B) includes 33 associations with portfolio value ranging between EGP 10 million and EGP 50 million.

Category (C) includes 438 associations with portfolio value of EGP 10 million or less.