الهيئة العامة للرقابة المالية

• FRA’s participation underscores its commitment to foster direct dialogue with the global investment community and sharing insights on regulatory and supervisory developments in financial markets.

Dr. Mohamed Farid – FRA Chairman:

• Reforms in the non-banking financial sector (NBFS) are strategically designed to complement macro-economic reforms, maximizing the positive impact of policies on citizens and businesses.
• The NBFS ensures economic reforms directly benefit citizens and companies by rapidly developing markets and diversifying financing tools.
• We are committed to build a disciplined, flexible financial market. This involves comprehensive regulatory and legislative reforms that carefully balance investor protection with economic growth, ensuring the market operates with transparency, efficiency and sustainability.
• Capital market development aims to boost transparency and discipline, encourage citizens to participate in stock investments and directly benefit from economic growth.
• FRA is leveraging FinTech and developing robust electronic infrastructure to lead the digital transformation of the NBFS. This effort is crucial for enhancing financial inclusion and significantly broadening the scope of financial services.

Dr. Mohamed Farid,  FRA Chairman held high-level open dialogues with leading international investors, asset managers and global financing institutions during the World Bank Group-IMF Annual Meetings in Washington.  Hosted by Standard Bank Group and Citibank, the sessions focused on reviewing Egypt’s regulatory and supervisory policy developments, particularly within the context of Egypt’s comprehensive financial, monetary, structural and non-banking financial sector (NBFS) economic reform program.

FRA’s presence at these global gatherings underscores its dedication to build bridges of communication with the global investment community. The Authority actively uses these forums to exchange views on regulatory developments and to showcase the significant progress made in reforming and developing the Egyptian NBFS – a crucial pillar supporting economic growth and financing sustainable development.

During the discussions, Dr. Farid emphasized that FRA’s comprehensive reforms to develop and regulate non-banking financial markets are a direct extension of Egypt’s broader macro-economic reforms. He clarified that the true measure of economic reform success is its capacity to reach companies and individuals through well-regulated financial markets and effective supervision.

This strategic integration between macro-level and sectoral reforms significantly enhances “Transmission Mechanism.” This mechanism ensures that the benefits of macro-economic stability are effectively reflected in improved market performance and in increased financing and investment opportunities for both citizens and businesses.

Dr. Farid further explained that the Authority focused on deepening markets, expanding the base of participants and enhancing efficiency and transparency. This strategic approach is essential for converting overall economic growth into real financing opportunities for companies and encouraging wider societal participation in economic activity. He concluded that the NBFS plays a vital role in effectively mobilizing domestic resources and channeling them towards diverse, productive and sustainable investment projects.

In his address, Dr. Farid reviewed the key structural, legislative and regulatory reforms recently implemented across the insurance, capital market and non-banking finance sectors. These comprehensive changes are designed to create a financial sector that is more efficient, sustainable and resilient against global challenges.

In the insurance sector, FRA is enhancing protection by raising insurance companies’ capitalization, financial solvency and administrative and technical capabilities. This push is underscored by a legislative milestone: the implementation of the Unified Insurance Law No. 155 of 2024. This new law marks a major turning point by unifying the legislative framework, significantly enhancing insurance inclusion and expanding the base of beneficiaries, thereby contributing directly to the financial stability of individuals and institutions.

For Capital Market Development, the Authority has enacted deep institutional reforms focused on boosting discipline, transparency, disclosure, and investor protection. A key goal of these efforts is empowering citizens by actively encouraging their participation in stock market investments, thus directly linking the public to national economic activity, wealth creation and growth. He added that FRA is actively working to launch new financing and investment tools tailored for startups and SMEs. Furthermore, efforts are underway to develop sustainable finance markets and the voluntary carbon market, an initiative that solidifies Egypt’s position as a regional hub for green and sustainable finance.

FRA Chairman emphasized that legislative and regulatory progress is incomplete without a robust commitment to digital transformation and technological innovation. FRA is therefore taking a pivotal role in leading the digital overhaul within the Non-Banking Financial Sector (NBFS) by strategically adopting Financial Technology (FinTech). This is a core strategy to both expand access to financial services and significantly enhance financial inclusion. Driven by its vision for a more efficient and innovative financial sector, the Authority is actively fostering a flexible and advanced regulatory environment. This framework specifically encourages the use of technological solutions across key areas, including micro-finance, financial leasing, mortgage finance and consumer finance. This strategic approach not only allows financial services to reach wider segments of individuals and SMEs but also reduces the cost of financial services, accelerates financing cycle and improves quality of credit decisions. Additionally, FRA is simultaneously focused on developing the digital infrastructure of the markets. This includes launching essential electronic platforms for licensing, supervision and disclosure. Furthermore, the Authority is integrating smart data analytics to significantly boost supervisory efficiency and ensure the highest quality of market information.

FRA is leading integrated efforts to foster the crucial link between FinTech and financial inclusion. This is achieved by establishing a supportive legislative and regulatory system that champions innovation and creates space for startups and digital service providers to develop new products that meet diverse needs. A key initiative is FRA Sandbox which is an experimental platform the Authority launched to evaluate and develop financial innovations under its direct supervision. In this respect, FRA manages to strike a balance between providing robust consumer protection and fostering an environment that actively encourages innovation and new ideas.

The Authority recognizes that technology is a means, not an end. To that effect, FRA is dedicated to raise the digital financial awareness and literacy of consumers and institutions. This approach is designed to deliver real and sustainable financial inclusion, empowering citizens with fair access to finance. Ultimately, this effort makes the Non-Banking Financial Sector (NBFS) more flexible and capable of supporting economic growth and social development, contributing directly to job creation and increased productivity.

Dr. Farid affirmed that the comprehensive regulatory and supervisory reforms led by the Authority are the fundamental pillar for building a disciplined, flexible and fair market that effectively balances investor protection with growth stimulation. He stressed that supervision is not a goal unto itself; rather, it is a vital tool for achieving market stability, ensuring the efficient allocation of resources and stimulating innovation in financial products and services.

He pointed out that FRA is committed to implement the best standards of governance and international practices in supervision and regulation. This commitment is paired with a focused effort to develop the capabilities of technical and professional staff within the Authority and across non-banking financial institutions. Furthermore, FRA is actively working to enhance financial and investment literacy to ensure all participants have a deeper understanding of new tools and markets.

Dr. Faird added that the Authority remains focused on continually developing the regulatory and legislative framework and adopting policies that stimulate financial innovation without compromising institutional discipline. This strategic approach is crucial for boosting the confidence of local and international investors and ensuring that Egyptian financial markets can effectively finance economic development and support the transition toward a more flexible, sustainable and competitive economy.

In conclusion, FRA Chairman affirmed that the development of the non-banking financial sector is a continuous journey and a top priority for FRA. It stands as one of the main engines for achieving comprehensive and sustainable growth in the Egyptian economy.