الهيئة العامة للرقابة المالية

Dr. Mohamed Farid – FRA Chairman:

• Non-banking financial services are a key driver in supporting the national economy
• Stock exchange, insurance and non-banking finance offer diverse financing, investment and insurance solutions critical for achieving economic nd social development goals.
• Financial awareness and literacy are essential pillars in the fight against financial fraud.
• The stock exchange is ready to receive new listings, supported by a visible upward trend in liquidity and trading.
• Insurance is a necessity, not a luxury, and stock market investing is now open to everyone, not just the wealthy.
• Legalizing all financing and investment activities preserves the rights of all stakeholders, ensures market stability, and enhances the levels of risk management and measurement.
• Higher efficiency in managing private insurance fund investments directly translates into increased benefits for subscribers and pensioners.
• The significant enhancement of Egyptian Accounting Standards boosts transparency and ensures accurate financial reporting, ultimately strengthening investors’ decision-making.
• The press is an essential partner in formulating economic development strategies and ensuring their real-world impact.
• We appreciate and value your efforts to raise public awareness and highlight all developments.
• The launch of the new insurance campaign aims to change perceptions and drive citizen participation. This will be followed by targeted campaigns for the capital market and financing sectors.
• The implementation of Basel III solvency standards will strengthen the ability of non-banking finance firms to meet obligations and significantly improve risk management and measurement.
• FRA is committed to relentless supervision and permanent monitoring to proactively combat financial fraud. Any non-banking financial company found to be non-compliant or operating without a license will be immediately shut down.
• We have zero tolerance for violations of the law across all non-banking financial markets.
• Regulating and formalizing consumer finance and MSME finance was a necessary step to successfully integrate these vital activities into the formal economy.
• FRA is actively coordinating with various government bodies to strengthen market regulation and combat financial fraud.
• The objective of market supervision is to protect stakeholders to achieve stable and sustainable growth.
• We remain firmly committed to the fundamental principles of market stability and consumer protection. Development is a continuous process aimed at boosting the efficiency and competitiveness of non-banking financial services.
• Integrity, transparency, and sound transactions are the core objectives for expanding the influence of non-banking financial markets across Egypt.
• Gold Investment Funds, enabled by innovative legislation, have successfully attracted over 200,000 investors and amassed EGP 2.7 billion in net assets.
• The regulation of digital platforms for real estate fund certificates provides simple, monitored solutions for acquiring real estate shares.
• FRA key objective is to expand the number of individuals and businesses benefiting from non-banking financial services.
• Digital transformation and innovation are essential pillars for achieving financial, investment and insurance inclusion.

Dr. Mohamed Farid, FRA Chairman met with a number of Egyptian editors-in-chief to highlight FRA’s strategy for developing the non-banking financial sector. The meeting underscored the sector’s crucial role – delivered through the capital market, insurance and finance – in supporting the national economy. FRA Chairman specifically urged media leaders to participate in a crucial public awareness campaign for insurance activities which will launch in the coming days.

In his speech, Dr. Farid emphasized that non-banking financial services are the key driver supporting the national economy. He noted that the stock exchange, insurance and non-banking finance provide diverse financing, investment and insurance solutions that directly contribute to achieve goals of Egypt’s economic and social development plans.

Additionally, Dr. Farid noted a positive upward trend in liquidity and trading, affirming the Egyptian Stock Exchange’s capacity to receive new listings. He underscored the dual imperative to balance market stability and client protection with the need to ensure trading freedom operates strictly under supply and demand mechanisms.

Dr. Farid explained that establishing controls and regulations for all non-banking finance and investment activities preserves the rights of all stakeholders, ensures market stability and enhances risk management and measurement levels. He also pointed out that improving the efficiency of investment management in private insurance funds contributes to increasing benefits for subscribers and pensioners.

He added that private insurance funds are insurance schemes registered with the Financial Regulatory Authority, gaining independent legal personality. They are established to grant benefits to a group of employees linked by a common connection. These benefits can take the form of insurance advantages, additional pensions, social benefits, or healthcare. The benefits provided by private insurance funds can be categorized as insurance, savings, additional pensions, social benefits or healthcare advantages.

FRA Chairman affirmed that Egyptian Accounting Standards have undergone exceptional development and now largely reflect global practices and developments, which is a source of pride. He explained that this effort was achieved in integration with the reform efforts adopted and implemented by the Egyptian government to enhance levels of growth and sustainable development.

Dr. Farid noted that development and reform efforts are continuous, recognizing that a long path lies ahead to fully support the national economy. Also, he highlighted that the core importance of developing Egyptian Accounting Standards lies in their ability to help companies accurately express their financial position and operating results. This accuracy, in turn, supports sound financial and investment decision-making. Dr. Farid added that the recent comprehensive overhaul of these standards covered key areas such as valuing assets at fair value (replacing book value), real estate investment and equity.

On the other hand, Dr. Farid explained that the coming days will witness the launch of a long-term advertising campaign to raise awareness about the insurance sector. The campaign will primarily target increasing savings rates among Egyptians, which will have positive effects on the national economy and the economic growth rate.

He pointed out that the launch of the insurance advertising campaign will change the public perception and will encourage citizens to engage with insurance. This will be followed up with other advertising campaigns specifically for the capital market and non-banking finance sectors.

FRA Chairman confirmed that issuing new solvency standards, aligned with international “Basel III” rules, is designed to strengthen the financial positions of non-banking finance firms and enhance their resilience to risks. This measure directly supports FRA’s core objective: maintaining the financial stability of the entire non-banking sector.

These standards significantly enhance the ability of non-banking finance companies to manage credit, operational and market risks. By ensuring sufficient liquidity, the firms can meet all short- and long-term obligations, cover potential losses and ultimately promote the safety and stability of the non-banking financial sector.

Dr. Farid highlighted FRA’s continuous regulatory efforts and permanent monitoring to combat financial fraud, aimed at immediately shutting down all companies practicing unlicensed or non-compliant non-banking financial activities.

He stressed that financial awareness and literacy are the most important pillars for confronting such fraud. To this end, FRA began publishing a periodically updated list last May detailing “negative entities” identified through public complaints that are operating in violation of non-banking financial laws. This list will be updated regularly as new cases arise.

Additionally, FRA Chairman affirmed that the regulation and legalization of consumer finance and MSME finance was a necessary measure. This action ensures these activities are integrated into the formal economy, providing funding for all citizen segments and achieving comprehensive financial, investment and insurance inclusion.

FRA Chairman explained that the innovative legislation establishing Gold Investment Funds has been highly successful. As of the end of last August, these funds attracted over 200,000 clients and achieved EGP 2.7 billion in net assets.

Furthermore, he noted that regulating digital investment platforms for real estate fund certificates now offers simple and supervised solutions for investing in real estate shares/units.

Dr. Farid clarified that digital transformation and innovation serve as the essential pillars for achieving comprehensive financial, investment and insurance inclusion.