Dr. Islam Azzam – FRA Vice Chairman:
- Insurance is a strategic partner in protecting both human and material components of the educational process, thereby ensuring the future of coming generations.
- Listing shares on stock exchanges and issuing bonds are among the most vital financing solutions for the sector.
- Direct funding to education companies has reached EGP 2 billion through securitization bond issuances.
- Consumer finance and financial leasing offer essential alternative funding, empowering all participants in the educational process to effectively carry out their roles.
Dr. Islam Azzam, FRA Vice Chairman delivered the opening keynote address at the 4th Annual Education Investment Summit. Held under the theme “Investing in Education: Between Pluralism, Integration and Regional Expansion”, the summit served as a crucial platform to explore how to leverage the diverse financing solutions and services available within non-bank financial sector. Throughout its sessions, the summit focused on the latest developments and mechanisms for cooperation among all stakeholders to boost investment in education. It also highlighted promising opportunities for collaboration between Egypt and various Arab and foreign countries. The event witnessed strong attendance from key figures, including representatives from the Ministry of Finance and the Central Bank, as well as a distinguished group of Egyptian and international private sector investors.
In his address, Dr. Azzam highlighted various financing solutions provided by sectors under FRA’s supervision and oversight. He underscored their collective role in robustly supporting and significantly enhancing investment within the education sector. At the absolute forefront of these critical sectors, he particularly emphasized the insurance sector, which, he stressed, has definitively emerged as a strategic partner in safeguarding both the invaluable human and essential material components of the entire educational process, thereby playing a fundamental role in securing the prosperous future of successive generations.
Dr. Azzam further elaborated on the insurance sector’s profound and multi-faceted contribution. He specifically detailed the vital role of the Government Insurance Fund for School Students and Al-Azhar students. This crucial fund provides an essential and comprehensive protection that cover students against a spectrum of critical risks, including, but not limited to, accidental death, natural death, various physical injuries and any resulting total or partial disability.
FRA is proactively developing and issuing new legislation to govern specialized insurance products. This includes crucial insurance solutions aimed at ensuring families can continue to cover education expenses in the unfortunate events of death or disability, through programs like family education insurance. FRA is also committed to provide health insurance services for students at all educational levels and insuring educational institutions against various operational risks.
Furthermore, FRA’s Vice Chairman highlighted the Authority’s dedication to enhance specialized academic education. This involves forging agreements between key players in the insurance market and various universities and educational institutions. A prime example is the collaboration between the Insurance Federation of Egypt and universities to develop actuarial education, preparing students specifically for the demands of the insurance sector, all under the direct patronage of FRA.
Regarding the capital market sector, Dr. Azzam affirmed that listing and offering shares on the stock exchange provide a wide array of solutions and opportunities that enable companies to achieve their strategic goals. He specifically pointed to securitization bonds and sukuk (Islamic bonds) as vital financing mechanisms accessible through the securities market, emphasizing that even unlisted companies can leverage these tools. Additionally, he noted that recently developed accounting standards assist companies in re-evaluating their assets at market value.
Dr. Azzam particularly emphasized future cash flow securitization bonds, describing them as a crucial and promising financing instrument for the education sector. These bonds are designed to provide essential liquidity, facilitating the funding of expansion projects and the construction of new educational facilities. Moreover, they play a key role in diversifying funding sources and lowering costs, directly bolstering efforts to enhance and improve the overall quality of education.
Egypt has witnessed a notable surge in securitization bonds between 2022 and 2024, particularly those backed by future cash flows. The education sector was a major beneficiary, with three issuances for educational institutions alone amounting to approximately EGP 2 billion.
FRA Vice Chairman also highlighted how non-bank finance solutions like financial leasing can empower the education sector. For instance, institutions can lease essential buildings and equipment. Financial leasing further extends to funding student transportation, offering flexible medium-term repayment periods typically ranging from three to five years.
Dr. Azzam further noted that consumer finance products empower students by facilitating payment for tuition fees, books and stationery. This support extends across all educational levels, from basic and university education to postgraduate studies and professional certificates in various fields. Ultimately, these solutions significantly enhance access to high-quality education for a wider student base and cultivate a stronger culture of continuous learning.
Last modified: July 17, 2025