الهيئة العامة للرقابة المالية

• The meeting introduces investment opportunities and the legislative framework in the non-banking financial sector, aiming to coordinate strategies with foreign missions to attract international investment.
• An agreement was reached on the crucial need to unify efforts. The goal is to strengthen economic partnerships with key countries and to proactively seek out new investment opportunities.
• The newly assigned ambassadors will be assigned to various countries across Europe, Africa and Asia.

Dr. Mohamed Farid- FRA Chairman:

• Egypt has an economic reform journey rich with investment opportunities, and integration with the Ministry of Foreign Affairs is essential for promoting and marketing them abroad.
• Consistency and continuity in communicating Egypt’s economic developments abroad are essential for boosting foreign investments.
• The non-banking financial sector has undergone exceptional transformations in digitalization, sustainability, carbon initiatives, capital markets and insurance. These developments have created diverse investment opportunities that must be actively promoted internationally.
• We extend our gratitude to the Ministry of Foreign Affairs and Minister Badr Abdelatty for this initiative. It is a crucial effort to enhance coordination among various state agencies, institutions and our ambassadors abroad.
• An agreement was reached to implement several programs designed to introduce global investment funds and institutions to investment opportunities in the stock market and fintech startups.
• Regular coordination will take place with the Ministry of Foreign Affairs to inform our communities abroad about investment opportunities in non-banking financial services and to cooperate on simplifying the procedures for their participation.
• Continuous coordination and integration are essential for propelling development efforts and achieving the goals of economic and social development plans.
• Innovative legislation is designed to attract funding, support the national economy and promote many promising investment opportunities.
• The laws regulating non-banking financial activities are the main pillar for ensuring the stability of this sector and protecting its participants.
• The primary goal of digitizing transactions is to maximize the benefits of non-banking financial services for both citizens and clients.

In a move to integrate institutional efforts and attract foreign investment, Dr. Mohamed Farid- FRA Chairman held a comprehensive meeting with newly assigned ambassadors at the Ministry of Foreign Affairs. During the meeting,  Dr. Farid delivered a presentation on the Authority’s activities and its ambitious strategy to develop the non-banking financial sector, highlighting its role as a key driver of the national economy

The presentation also highlighted the most significant investment opportunities available in the non-banking financial sector. The goal is to coordinate efforts with Egypt’s missions abroad to promote and market these opportunities as a collective effort to enhance foreign investment in Egypt.

The meeting comes at a crucial time as Egypt works to solidify its position as a regional investment hub and expand financing available for projects of all sizes. These national efforts are designed to increase growth and create new jobs. Dr. Farid emphasized that the purpose of the meeting was to brief the ambassadors on the latest developments in the non-banking financial sector, empowering them to effectively promote investment opportunities to international investors and institutions in countries where they represent Egypt.

He added that equipping Egyptian ambassadors with sufficient knowledge of investment tools and regulatory laws gives them the ability to convey a clear and accurate picture of Egypt’s investment environment which in turn enhances the chances of attracting foreign capital.

Dr. Farid began the meeting by congratulating the ambassadors and heads of Egyptian missions abroad and wishing them success. He then outlined FRA’s crucial role in regulating the non-banking financial sector. He emphasized that integrating regulatory oversight with diplomatic work is a vital element of Egypt’s strategy to boost both direct and indirect foreign investment.

He  highlighted the diverse areas of the non-banking financial sector, including: capital markets , insurance , investment funds , real estate financing ,financial leasing, factoring,

consumer and micro-finance.

Dr. Farid explained that FRA’s regulatory role is to ensure the safety and stability of these activities by adopting international best practices for governance, risk management and investor protection.

He also shed light on the innovative legislations designed to attract funding, support the national economy and promote Egypt’s promising investment opportunities. The non-banking financial sector is considered a cornerstone for providing diverse financing, enhancing financial inclusion and achieving sustainable development.

The presentation detailed recent legislative and regulatory updates, stressing that these Laws are the primary pillar for the sector’s stability and for protecting participants. By setting clear standards for solvency, risk management and disclosure, this legislative framework boosts transparency and increases confidence among both local and international investors. The ultimate goal is to support financial inclusion, make financing more accessible, create a competitive environment, and align Egypt’s market with global standards to attract investment and limit systemic risks.

Additionally, he explained that the Authority is working to create an attractive regulatory environment that encourages innovation, supports the digitalization of financial services, and expands opportunities for the private sector, all of which will positively impact the national economy. Dr. Farid noted the significant workforce within the sector, with 6,791 professionals in the capital market, over 14,600 in insurance, 437 in real estate finance and 815 auditors.

Regarding Capital Market, FRA Chairman pointed to a notable increase in several key indicators for the first half of the year. The value of stock issuances rose to EGP 335 billion, compared to EGP 299 billion in the same period last year.  The total value of other issuances grew significantly to EGP 52.5 billion, up from EGP 17.3 billion. On the other hand, market capitalization also increased substantially, reaching EGP 2.4 trillion in June 2025, a considerable jump from EGP 1.8 trillion in June 2024.

Dr. Farid also highlighted strong growth in the insurance sector’s performance indicators, where

total premiums reached EGP 56.8 billion during the first half of 2025, compared to EGP 43.7 billion in the same period last year. Total compensation also grew to EGP 28.9 billion, up from EGP 20 billion in the previous year.

Additionally, real estate financing has been a key driver of growth. The total annual value of financing granted by companies surged to EGP 22.1 billion, marking a substantial increase from the EGP 12 billion recorded in the same period last year. The value of financial leasing contracts jumped to EGP 84.4 billion from EGP 49.3 billion, and factored securities more than doubled, reaching EGP 59 billion from EGP 27.6 billion.

Further demonstrating this upward trend, the consumer-financing sector also witnessed a significant boost. The value of consumer financing reached EGP 29.2 billion between January and June 2025, benefiting 3.8 million beneficiaries, which is a considerable increase from the EGP 19.9 billion that benefited 1.424 million customers in the prior year.

Furthermore, MSME finance surged, with balances climbing to EGP 84.8 billion by the end of June 2025, up from EGP 65.2 billion a year earlier. The total value of registered assets in the Egyptian Collateral Registry also reflected this expansion, growing to EGP 3.7 trillion from EGP 2.7 trillion.

Regarding the digitization of non-banking financial services, Dr. Farid stated that the main goal of digitizing these transactions is to maximize the benefits for citizens and customers. This is supported by Egypt having 73 million mobile phone users with an average age of 24, and an internet penetration rate of 81.9%. This reflects a high rate of adoption for digital and technological services, a point that has been affirmed by the political leadership, led by His Excellency President Abdel Fattah El-Sisi, over the past period.

He confirmed that the journey to regulate the legislative structure in the markets under the Authority’s supervision began with the issuance of Board resolution No. 122 of 2014 regarding the regulation of electronic distribution of standardized insurance policies. This was followed by resolution No. 316 of 2014 concerning the technological infrastructure requirements in the non-banking financial sector, and resolution  No. 1005 of 2013 regarding the regulation of technological infrastructure and information security systems necessary for brokerage firms.

Subsequently, the pace of efforts to digitize non-banking financial transactions accelerated. The Authority issued a package of executive decisions to implement Law No. 5 of 2022 which established the regulatory and legislative framework for organizing and developing the use of technology in non-banking financial activities and services. This was followed by the issuance of resolution No. 69 which focused on digitizing and linking insurance companies’ databases with the Authority’s database and then resolution No. 58, which regulated the rules for establishment and licensing.

FRA Board of Directors also issued resolution No. 139 of 2023, which outlined the necessary technological infrastructure, information systems and security measures for using fintech in non-banking financial activities.

Following this, resolution No. 140 of 2023 was issued, focusing on digital identity, digital contracts and digital registry. This was the first regulatory decision of its kind from a financial sector supervisory body, and it detailed the Electronic Know Your Customer (eKYC) requirements. Additionally, resolution No. 141 of 2023 established Fintech Outsourcing Registry for companies allowed to provide essential electronic customer identification and contract record services to financial companies operating in the field. The Authority continued its legislative push with resolution No. 57, which regulated the work of the Robo-advisor and resolution  No. 268, which allowed the establishment of fintech startups with capital of EGP 15 million.

Dr. Farid highlighted the rapid and revolutionary pace of artificial intelligence (AI), emphasizing the critical need for institutions and markets to enhance their capabilities. He stressed that while these technological advancements offer immense potential, they are also accompanied by risks. A high level of preparedness, he noted, is essential to build a resilient non-banking financial sector that can effectively leverage new technologies while efficiently managing their associated risks.

He further explained that true change had to begin within the Authority itself. To this end, FRA formed strategic partnerships to bolster its own technological infrastructure, which now includes a digital professional’s platform and a central registry for digital contracts and electronic signatures.

The strategic efforts to digitize Egypt’s non-banking financial sector are already showing significant results. 70 companies have begun their digital transformation journey, with 24 already providing services digitally and 46 more in the process of meeting regulatory requirements. Additionally, seven companies now offer outsourcing services in financial technology, with four already officially registered and three more working on their registration. This push has led to tangible outcomes, including 120,000 digital verification operations and 80,000 digital contracts issued so far.

On the other hand, the Authority is establishing a regulatory sandbox for technological applications under resolution No. 163 of 2024.  FRA Sandbox will allow fintech startups and outsourcing companies to test new technologies and business models in a controlled environment. The sandbox’s primary goal is to make it easier for smart digital solutions to enter the market, improve regulatory understanding of fintech and support sustainable growth by fostering innovation in the non-banking financial sector.

The meeting featured an open dialogue between FRA Chairman and the ambassadors, touching on a number of topics. These included partnership opportunities between Egyptian and global companies, mechanisms to encourage international financial institutions to enter the Egyptian market, the exchange of expertise in innovative financing and the importance of leveraging opportunities in sectors like green and sustainable finance and financial technology (FinTech).

In closing, Dr. Mohamed Farid expressed his appreciation for the Ministry of Foreign Affairs’ role in supporting efforts to promote market and defend Egypt’s interests on the international stage, as well as in strengthening economic partnerships and exploring new opportunities for investment and trade. He affirmed that the upcoming period will witness greater coordination and cooperation with Egyptian diplomatic missions to enhance Egypt’s position on the global investment map and attract more investments that contribute to driving economic development.