الهيئة العامة للرقابة المالية

Dr. Islam Azzam Outlines Capital Market Updates at “Portfolio Egypt 2026” – Monday 8 June 2026

Dr. Islam Azzam , FRA Chairman:

• Launching derivatives amid regional conditions signals the Egyptian market’s growth potential.
• Full EGX coordination is underway to launch futures contracts on listed stocks this June.
• Short-selling frameworks will be finalized soon, and activating “Market Makers” will significantly drive liquidity.
• Raising awareness is vital for new financial instruments, with rising youth interest expected in derivatives.

Dr. Islam Azzam, FRA Chairman reviewed the latest developments in Egypt’s capital market, highlighting the rollout of new financial mechanisms designed to deepen liquidity and boost market attractiveness. He shared these updates during his address at “Portfolio Egypt 2026” conference, organized by Al-Mal newspaper in partnership with London Stock Exchange Group (LSEG).

Dr. Azzam addressed the opening panel discussion, titled “Main Trends Shaping the Region’s ECM and DCM in 2026,” which brought together a distinguished lineup of regional financial leaders. The high-profile session featured insights from Omar Radwan, Executive Chairman of the Egyptian Exchange (EGX); Rami El-Dokany, Secretary-General of the Arab Federation of Capital Markets (AFCM) and Zahi Bsaibes, Head of Middle East Primary Markets at the London Stock Exchange Group (LSEG). Ahmed Darwish, Assistant Managing Director of Wholesale Banking at Attijariwafa Bank Egypt, moderated the discussion.

Dr. Islam Azzam emphasized that the Financial Regulatory Authority (FRA) continuously enhances regulatory and supervisory frameworks in line with international best practices. These efforts aim to boost the efficiency of non-banking financial markets mainly the capital market while expanding the investor base and diversifying investment instruments to drive economic growth and enhance financial inclusion.

He noted that the Egyptian Exchange (EGX) has experienced remarkable growth since last year, reflected in average daily trading volumes surpassing EGP 12 billion and total market capitalization soaring to over EGP 3.8 trillion – the highest in the market’s history.

Dr. Azzam added that launching financial derivatives amid current regional geopolitical conflicts, coupled with the EGX’s strong performance despite global economic volatility, sends a powerful, positive message. It underscores the stability of the Egyptian market and its vast potential for development in line with the national objectives of Egypt Vision 2030.

FRA Chairman explained that finalizing the financial derivatives ecosystem is a core pillar of Egypt’s capital market development strategy. This involves launching a futures market based on EGX30 index, activating Market Maker activities and finalizing the rollout of Short Selling mechanisms. The latter includes amending the Executive Regulations of the Capital Market Law to expand acceptable collateral types, ensuring greater flexibility for all market participants.

He stressed that full and ongoing coordination with the EGX is underway to launch futures contracts this June, initially targeting listed stocks within the banking and real estate sectors.

He added that these new mechanisms will provide sophisticated hedging and risk-management tools, deepening market liquidity and improving pricing efficiency, which will ultimately enhance the EGX’s attractiveness to both local and foreign investors. Meanwhile, the activation of the Market Maker system is expected to significantly drive daily liquidity rates.

Dr. Azzam expressed optimism that financial derivatives will primarily attract younger investors. He pointed out that the 18-to-40 age demographic recently accounted for roughly 79% of total EGX investors, a clear indicator of growing youth interest in financial instruments.

This trend, he noted, underscores the market’s pressing need for intensified financial literacy campaigns by both FRA and EGX. These initiatives will focus on building practical knowledge regarding new investment tools, raising awareness of listing and trading processes, and highlighting the vital role the capital market and non-banking financial sectors play in the national economy.

Furthermore, FRA Chairman reviewed ongoing efforts to upgrade the capital market’s technological infrastructure, which serves as a major draw for diverse investor segments worldwide. He highlighted an ambitious project currently underway at FRA to make all data and information across regulated markets available in both Arabic and English. This initiative targets three primary goals: attracting new investors by keeping them informed of ongoing developments, establishing seamless connectivity with market participants, and enabling FRA, Federations and companies to conduct advanced data analytics to support precise, future decision-making and elevate policy efficiency.

FRA Chairman at AIO Conference: Vast Potential to Expand and Deepen Egypt’s Insurance Sector –  Sunday 7 June 2026

Dr. Islam Azzam – FRA Chairman:

• The legislative and regulatory framework is driving companies to innovate and develop highly efficient products.
• Insurance serves as a vital tool to protect Egyptian families and support comprehensive economic growth.
• Product diversification and awareness are key to transform the insurance landscape across Egypt and Africa, fully backed by FRA’s support for the Insurance Federation.
• Mobile-app insurance policies are now a reality, with over 10 companies preparing to launch digital offerings.
• Scaling micro-insurance is a priority to protect vulnerable groups alongside MSMEs.

Dr. Islam Azzam, FRA Chairman delivered the opening address at the 52^nd Conference of the African Insurance Organization (AIO). Hosted in Cairo, the landmark event was organized by the Insurance Federation of Egypt (IFE) and drew widespread participation from insurance industry leaders, regulatory authorities and experts across Africa.

The conference featured a distinguished lineup of officials, headlined by Dr. Mohamed Farid, Minister of Investment and Foreign Trade who delivered a keynote address on behalf of Prime Minister Dr. Moustafa Madbouly. Also in attendance were Dr. Ahmed Rostom, Minister of Planning and Economic Development; Ambassador Mohamed Abu Bakr, Deputy Minister of Foreign Affairs for African Affairs; Dr. Yared Mola, President of the AIO; and Mr. Alaa El-Zoheiry, Vice President of the AIO and President of the Insurance Federation of Egypt. A broad assembly of regional financial regulators, institutional representatives and insurance and reinsurance CEOs from across the continent joined the conference.

Dr. Islam Azzam emphasized that insurance serves as a vital pillar for economic and social empowerment, providing crucial stability for both individuals and institutions. He noted that this conference coincides with the two-year anniversary of the enactment of the Unified Insurance Law (No. 155 of 2024), which strategically views insurance as a major catalyst for inclusive economic growth.

He added that Egypt’s insurance industry is undergoing a pivotal transformation to boost financial inclusion and expand social protection frameworks. This is being achieved through the expansion of micro-insurance and the development of tailored insurance products for micro, small, and medium enterprises (MSMEs), professionals, laborers and workers within the agricultural and livestock production sectors—ultimately driving socioeconomic development and enhancing risk resilience across productive activities.

FRA Chairman highlighted that the Egyptian market holds immense growth potential under the new legislative and regulatory framework, offering significant opportunities to expand outreach to underserved segments of the population. He pointed out that low insurance penetration rates remain a shared challenge across the African continent; penetration rates do not exceed 3% in most African countries, with the exception of South Africa, where it reaches approximately 12%.

To reshape this landscape, Dr. Azzam stressed the critical need to intensify financial literacy and insurance awareness campaigns. He reaffirmed FRA’s ongoing support for initiatives led by the Insurance Federation of Egypt (IFE) to educate citizens on the importance of insurance in achieving financial and social stability. He also called for the continuous development of innovative products that directly align with the everyday needs and concerns of citizens.

In line with digital transformation strategies, Dr. Islam Azzam explained that FRA has established a flexible and encouraging regulatory environment to drive the adoption of financial technology (Fintech) within the insurance sector. This includes regulatory frameworks that mandate companies operating digitally to deploy robust technological infrastructure and adhere to the highest cybersecurity standards.

To date, FRA has approved two companies to offer products using fintech, covering the digital issuance of insurance policies via mobile applications, digital identity verification, Electronic Know Your Customer (e-KYC) procedures, and the electronic execution and registration of digital contracts. Furthermore, more than 10 other insurance companies have submitted applications to issue policies digitally via mobile platforms. Dr. Azzam also highlighted the role of FRA-Sandbox which has so far approved two innovative projects leveraging technology to improve risk and damage assessment accuracy while accelerating claims processing, noting that FRA continuously welcomes creative solutions that help developing the sector and reach wider consumer demographics.

FRA Chairman noted that current indicators clearly signal a strong market demand for more diverse insurance products. To support this growth, FRA has issued approximately 80 executive regulations under the Unified Insurance Law over the past two years, aiming to construct a flexible regulatory framework aligned with global best practices that enhances the sector’s efficiency and investment appeal while maintaining strict compliance with governance and risk management standards.

Dr. Azzam highlighted that FRA has completed regulating several core professions linked to insurance activities, including actuaries, insurance consultants and insurance/reinsurance brokers. Additionally, FRA continues to engage in dialogue with sector professionals, industry associations, and companies to support capacity building and human capital development through advanced training programs both locally and abroad.

Regarding the development of specialized activities, Dr. Azzam stated that FRA has issued new regulatory standards for reinsurance and, for the first time, has established guidelines and listing criteria for Managing General Agents (MGAs). FRA has also finalized the regulatory framework governing specialized medical insurance companies and healthcare management programs, under which 6 companies have secured temporary licenses to operate and 4 companies have applied for final licensing. Furthermore, FRA Chairman pointed out that FRA has approved the establishment of two new companies specializing in micro-insurance, with a third application currently under review, to expand insurance coverage to broader segments of the population.

FRA has actively worked to diversify insurance product distribution channels, expanding beyond traditional methods to include post offices, banks, e-commerce platforms, and telecommunications companies, with approximately 11 insurance companies currently marketing their products through the branches of 30 banks nationwide. He stressed that bolstering the financial solvency of insurance companies remains a primary focus for the FRA, which is being achieved by upgrading rules for calculating technical provisions and reserves, increasing capital requirements by approximately 10-fold and implementing IFRS 17 to enhance transparency, disclosure and standard accounting practices for insurance contracts.

In closing, Dr. Azzam underscored that safeguarding consumer rights and fostering a fair market ecosystem remain top priorities for FRA. The recently issued specialized complaint-handling guidelines introduce streamlined mechanisms designed to ensure consumers can efficiently resolve issues and access their full rights and services.

Dr. Islam Azzam announced that FRA is currently studying the implementation of a comprehensive electronic linkage project. This initiative will connect the Authority with all non-banking financial sectors through an integrated digital system, enabling advanced data analytics, streamlining procedures and elevating the efficiency of regulatory and supervisory services.

In closing, FRA Chairman emphasized the critical importance of fostering cooperation and integration among African markets, as well as exchanging successful expertise and benchmarks. Such integration will transform the continent’s insurance industry and maximize its contribution to sustainable socioeconomic development under Egypt Vision 2030.

FRA Extends Carbon Footprint Reporting Deadline for NBFS Companies to December 31, 2026 – Thursday 4 June 2026

Dr. Islam Azzam, FRA Chairman: Decision aligns with public dialogue to streamline operations across various sectors.

FRA Board of Directors chaired by Dr. Islam Azzam, has issued a Resolution extending the deadline for non-banking financial services (NBFS) companies with issued capital or equity exceeding EGP 100 million to submit their mandatory carbon footprint reports. Under the new resolution, the compliance deadline has been extended to December 31, 2026, providing a significant grace period from the previously scheduled cutoff of June 30.

Dr. Islam Azzam stated that this decision aims to ease the burden on the mandated companies, following an extensive public dialogue conducted by the Authority with various market sectors. He emphasized that this step reflects FRA’s ongoing commitment to foster a favorable business environment that enables companies to grow and develop by introducing agile regulatory updates that effectively keep pace with shifting economic dynamics.

Resolution No. 115 of 2026 extends the carbon disclosure and offsetting deadline originally set under Article 1 of Resolution No. 36 of 2026. Companies now have until December 31, 2026 – rather than June 30, 2026 – to submit their Carbon Footprint Reports. The regulation mandates that these reports cover both Scope 1 and Scope 2 emissions and be officially audited by an FRA Validation and Verification Bodies (VVB).

This move comes as part of FRA’s broader strategy to develop the regulatory framework governing non-banking financial activities. The Authority seeks to maintain a precise balance between stimulating market activity and supporting companies in achieving their financial and operational targets, ultimately maximizing the sector’s contribution to national economic growth. This is being executed with an absolute focus on ensuring market stability, maintaining transaction integrity, protecting stakeholder rights and enforcing rules that guarantee market efficiency and transparency.