الهيئة العامة للرقابة المالية

Dr. Islam Azzam – FRA Vice Chairman:

• Following collaborative discussions with non-bank finance companies, the implementation of “Basel III” solvency standards is set to begin soon.
• Ongoing development of Egyptian Exchange listing rules has boosted financing opportunities and investment inflows for various economic entities.
• The regulation of Special Purpose Acquisition Companies (SPACs) offers a significant and non-traditional pathway for startups seeking finance.
• A regulated voluntary carbon market offers an innovative way to support the government’s carbon neutrality goals via issuing and trading carbon credits.
• Gold investment funds have attracted 200,000 individual investors with investment values amounting to 2.1 billion Egyptian pounds.
• The Unified Insurance Law represents a qualitative leap in the development of the legislative framework regulating the Egyptian insurance market.
• The Authority’s launch of the Regulatory Sandbox demonstrates its proactive approach to foster innovation and tackle all challenges within the non-bank financial sector.

Dr. Islam Azzam, FRA Vice Chairman presented a keynote address at Africa Development Club Conference by Attijariwafa Bank, themed ” Bridging Markets, Building Future.” The conference addressed strategies for economic integration across the African continent and was attended by numerous corporate entities and investors.

Dr. Azzam stated that the implementation of “Basel III” standards concerning the financial solvency of non-bank finance companies would commence shortly, following collaborative engagement with the sector. He also noted the significant level of compliance (95%) with the Authority’s directive on minimum capital requirements of EGP 75 million instead of EGP 100 million for non-bank financial institutions.

He added that FRA is currently working on finalizing the development of listing rules on the Egyptian Stock Exchange to help companies explore financing opportunities and expansion, thereby injecting new investments that will achieve growth rates that encourage companies to list and offer shares on the exchange.

In this context, FRA Vice Chairman highlighted the Authority’s ongoing development of Egyptian Exchange listing rules, including SPAC regulation to facilitate startup equity financing and support entrepreneurship. This involved introducing flexible and simplified SPAC rules, diversifying acquisition methods (merger, share swap, credit balance) and enabling trading of both subscribers’ shares (at fair value) and public SPAC shares post-acquisition.

This regulatory framework led to the first SPAC listing with an initial capital of 10 million EGP, which later grew to 235 million EGP through qualified investors. The Vice Chairman explained this as a non-traditional financing solution designed to ease startups’ access to capital markets.

In support of Egypt’s carbon neutrality objectives, Dr. Azzam highlighted FRA’s launch of the first regulated voluntary carbon market for trading carbon credits, which includes registered projects from India, Oman, Bangladesh, and Egypt and has seen 5,000 trades with 170,000 credits registered.

Dr. Azzam also highlighted FRA’s comprehensive framework designed to facilitate secure and regulated gold investments for Egyptians. This framework has led to three active gold investment funds: AZ – Gold, Al Ahly, and Beltone-Evolve, with an additional fund having received approval. These funds have collectively attracted 200,000 investors and garnered a total investment of 2.1 billion Egyptian pounds as of April 23, 2025.

Furthermore, he affirmed ongoing efforts to boost the insurance sector’s efficiency through supportive legislation like the Unified Insurance Law, a significant step in regulating the Egyptian insurance and reinsurance market, along with related services and professions.

The law exclusively grants the Authority the right to establish, license, supervise and regulate entities operating in this field, which enhances the effectiveness of regulation and provides a more stable and transparent environment.

He pointed out that since the issuance of the Unified Insurance Law, FRA has embarked on serious steps towards regulating and developing the Egyptian insurance market by establishing legislation and controls that ensure a stable and growth-stimulating regulatory environment.

Regarding non-bank financial activities, Dr. Azzam stated that FRA is continuously keen to ensure the financial solvency and technological requirements of non-bank financial institutions. Therefore, the Authority held a community dialogue with companies operating in non-bank financial activities before the upcoming implementation of financial solvency standards in accordance with Basel III.

As part of its continuous oversight, FRA is reviewing the compliance of non-bank financial companies with its stipulated minimum capital of 75 million EGP (100 million EGP for real estate), noting that 95% are currently meeting this requirement.

For his part, he indicated that FRA will soon launch the Regulatory Sandbox for the non-bank financial sector, and that this confirms the Authority’s seriousness in promoting innovation in the sector to provide innovative solutions that address all challenges.

He explained that the launch of the Regulatory Sandbox for the non-bank financial sector will also help the Authority achieve its vision of working to ensure that consumers benefit from emerging technologies, as well as maintaining regulatory standards, noting that the Regulatory Sandbox will help startups gain investor confidence and attract capital, thereby creating an interactive environment towards sustainable growth.