Dr. Mohamed Farid- FRA Chairman:
- Digitalization is the foundation of economic progress worldwide and Egypt is fully embracing this global digital transformation.
- The main objective of digitizing non-banking financial transactions is to maximize benefits for citizens and clients.
- The rapid advancement in Artificial Intelligence underscores the critical need to enhance the capabilities of companies and markets within our financial landscape.
- Significant progress has been made, with 7 companies now providing outsourcing services and 70 companies in the non-banking financial sector having started offering their services digitally.
- 80,000 digital contracts have been issued and 120,000 digital verification operations have been performed, 60% of which are in the capital market and the rest in non-banking financing activities.
- The official launch of FRA’s Sandbox was announced today.
- FRA’s Sandbox will empower practitioners in non-banking financial activities to leverage financial technology and conduct rigorous testing on innovative FinTech applications.
During FRA Fintech Forum 2025, Dr. Mohamed Farid, FRA Chairman presented the Authority’s extensive efforts to digitize non-banking financial services. This strategic initiative, underpinned by new legislation and regulations, aims to attract greater investment and bolster the national economy.
Dr. Farid underscored that digitalization is the global cornerstone of economic progress. He highlighted compelling statistics: approximately 64% of consumers worldwide now use digital applications daily, and nearly 80% of adults engage with digital financial services. This rapid shift has prompted over 60 countries to establish digital finance regulatory platforms, making it crucial for Egypt to keep pace.
“Egypt holds a strong position in this evolving landscape,” Dr. Farid stated, “driven by a large base of smartphone users with an average age under 24. This reflects a significant uptake of digital and technological services, a trend consistently supported by our political leadership, including His Excellency President Abdel Fattah El-Sisi.”
The primary objective of this digital transformation is to maximize the benefits of non-banking financial services for both citizens and clients. Dr. Farid detailed FRA’s proactive legislative journey, which began with Resolution No. 122 of 2014, regulating the electronic distribution of standard insurance policies. This was followed by Resolution No. 316 of 2014, addressing technological infrastructure requirements in the non-banking financial sector and Resolution No. 1005 of 2013 which set standards for technological infrastructure and information security systems for brokerage firms.
The non-banking financial sector has recently witnessed a significant acceleration in its digital transformation, a momentum driven by FRA’s issuance of a comprehensive package of executive decisions. These decisions operationalize Law No. 5 of 2022, a pivotal piece of legislation that established the overarching regulatory and legislative framework for fostering and governing technology’s use within non-banking financial activities and services. Building on this foundational law, FRA has since rolled out a series of critical resolutions. Resolution No. 69 mandated the digitalization and direct integration of insurance companies’ databases with the Authority’s central system, streamlining data management. This was followed by Resolution No. 58 which provided clear rules for the establishment and licensing of new entities.
Further solidifying the regulatory landscape, Resolution No. 139 of 2023 outlined the necessary technological infrastructure, information systems and robust security measures required for leveraging FinTech in non-banking financial activities. A standout measure, Resolution No. 140 of 2023, represents a pioneering regulatory decision from a financial sector oversight body. It precisely defines the requirements for digital identity, digital contracts, digital records, and the scope of FinTech use in non-banking financial activities, including compliance requirements for electronic customer identification. Additionally, Resolution No. 141 of 2023 established a dedicated register for outsourcing in FinTech, enabling specialized firms to provide essential electronic customer identification and contract record services to financial companies operating in the field.
Rounding out these key regulatory advancements, Resolution No. 57 was issued to regulate the operations of Robo-advisors. Finally, Resolution No. 268 notably permits the establishment of new FinTech startups with a capital of EGP 15 million specifically for conducting non-banking financing activities through technology.
Dr. Mohamed Farid highlighted the rapid and revolutionary advancements in Artificial Intelligence (AI). He emphasized the critical need for financial institutions and markets to enhance their capabilities to harness these developments effectively. Dr. Farid cautioned that technological progress inevitably introduces risks, underscoring the necessity of elevating preparedness and readiness. This proactive approach aims to cultivate a resilient non-banking financial sector that can effectively capitalize on technological innovations while managing associated risks efficiently. FRA recognized that true transformation had to begin internally. To this end, the Authority has forged strategic partnerships to bolster its technological infrastructure. Key internal developments include the creation of a digital professionals’ platform and the establishment of a central registry for digital contracts and electronic signatures.
These concerted efforts have yielded tangible results across the non-banking financial sector. So far, 70 companies have embarked on digitizing their services, with 24 already delivering services digitally and 46 actively fulfilling the necessary requirements. Additionally, seven companies now offer FinTech outsourcing services; four are registered in FRA’s registry, and three more are completing their registration. This push has facilitated approximately 120,000 digital verification operations, with 60% in the capital market and the remainder in non-banking financial activities. To date, 80,000 digital contracts have been issued.
Dr. Farid also underscored FRA’s continuous efforts and commitment to support companies’ growth. This support is grounded in intangible asset valuation standards and the Authority’s introduction of operating rules for Special Purpose Acquisition Companies (SPACs). These measures led to the establishment of Egypt’s first venture capital SPAC, formed under FRA Board of Directors Resolution No. 2323 of 2024, which is now listed on the Egyptian Exchange. Furthermore, FRA has issued valuation standards specifically for startups.
Dr. Mohamed Farid, FRA Chairman announced a significant step to support technology-driven startups offering non-banking financial services. He revealed that FRA’s Board of Directors issued Resolution No. 163 of 2024, authorizing the establishment and operation of FRA’s Regulatory Sandbox. This innovative sandbox will allow practitioners in non-banking financial activities, as well as entities listed or seeking to be listed on FRA’s FinTech outsourcing register, to test innovative financial technology applications, including business models and related mechanisms.
FRA’s Sandbox aims to facilitate the market entry of startups with smart digital solutions and enhance regulatory understanding of FinTech. It will also improve regulatory practices to support sustainable and inclusive financial growth, while boosting innovation within the non-banking financial sector. FRA’s continuous efforts are focused on creating a favorable regulatory environment that supports innovative financing, investment and insurance solutions for individuals and businesses.
Dr. Farid added that the Authority is committed to keep pace with unprecedented technological advancements, always prioritizing the interests of consumers. This involves fostering an interactive environment among companies providing smart solutions for non-banking financial institutions, research centers, universities, business incubators, accelerators, investors and global technology firms.
He explained that this Sandbox will also help FRA achieve its vision of supporting and encouraging innovation in non-banking financial services. Simultaneously, it will work to ensure consumers benefit from emerging technologies while upholding regulatory standards. Ultimately, FRA’s Sandbox will assist startups in gaining investor trust and attracting capital, fostering an interactive environment geared towards sustainable growth.
In a significant move to propel FinTech innovation, FRA Chairman announced the official launch of FRA’s Sandbox website: https://frasandbox.com. This new platform will serve as a central hub for information on sandbox activities and services, allowing stakeholders to track its progress in facilitating innovative FinTech applications. This initiative further solidifies FRA’s commitment to support digital-first startups offering non-banking financial services.
Dr. Farid outlined the diverse ecosystem of development partners collaborating with the Regulatory Sandbox, including regulatory and supervisory bodies, academic and research institutions, startups, business incubators and accelerators, financial institutions, technology providers, consumers and investors.
When discussing eligibility criteria for joining the Regulatory Sandbox, Dr. Farid emphasized several key requirements: a company’s innovation must be original within the Egyptian non-banking financial sector, ready for implementation and demonstrably improve market efficiency. Moreover, it must enhance consumer benefit and protection, all supported by a robust feasibility study and an effective plan.
The application process is streamlined: it begins with submitting a proposal, followed by a review, approval and a rigorous testing period. The process culminates in an evaluation which can lead to market entry, an extended testing phase or a rejection of the application.
FRA Chairman also highlighted the comprehensive services offered by FRA Sandbox platform which include the Regulatory Sandbox itself, innovation programs and competitions (hackathons), regulatory guidance and a marketplace for the FinTech ecosystem. Dr. Farid unveiled the first-ever hackathon launched through the Regulatory Sandbox in partnership with Mercatura Forum. The competition will unfold in three stages: a national phase in August, a continental phase in September, and a global phase in October. Full details and registration for the national phase will be announced on August 1st via the platform, with a total prize pool of $300,000. Additionally, details and registration for insurance technology-focused hackathons, in partnership with AUC Vlab through the Regulatory Sandbox, will be announced on September 1st.
FRA Chairman outlined ambitious future plans aimed at achieving exceptional results and adding significant value to the national economy. These include issuing regulatory rules for digital platforms facilitating investment in real estate investment fund certificates, which will be followed by equities and fixed-income instruments. Other strategic goals include simplifying the procedures for participation in venture capital companies and funds through a phased approach, streamlining procedures for disposing of unpaid securities and opening the field to all legal forms of investment funds. The latter will necessitate legislative amendments that FRA will be working on in the upcoming period
Last modified: July 27, 2025