FRA Chairman Meeting with Staff After Reappointment:
- Through the combined strength of one heart, hard work, and genuine commitment, we will raise Egypt’s name high.
- Our efforts are focused on creating decisions and policies that benefit people and boost the economy.
- We are committed to completing reforms that empower the non-banking financial sector to contribute significantly to the national economy and achieve our development goals.
- Our constitution guides us in using financial technology to create a stable financial ecosystem, protect consumers, and empower more citizens through non-banking financial services.
- We are committed to building a supportive environment that enhances the sector’s competitiveness and attracts both domestic and foreign investors.
President Abdel Fattah Al-Sisi issued Decree No. 323 of 2024, renewing the appointment of Dr. Mohamed Farid Saleh as FRA Chairman for one more year, as of 7 August 2023.
Dr. Mohamed Farid Saleh was appointed as Acting FRA Chairman for a one-year term, effective August 7, 2023 pursuant to Presidential Decree No. 326 of 2023.
Dr. Mohamed Farid Saleh serves as a member of the Central Bank of Egypt’s Board of Directors. He also chairs both the Egyptian Accounting Standards Committee and the Egyptian Standards on Auditing Review and Other Assurance Services (ESAROAS) as per a ministerial decree.
Dr. Farid is Vice President of IOSCO and Chair of its GEMC, the world’s largest financial market regulatory committee. He holds influential positions, as Vice-Chairman on the Board of Directors of the African Reinsurance Company and he currently holds the position of Vice-Chairman of the African Advisory Board, which is a part of the Glasgow Financial Alliance for Net Zero Emissions Africa (GFANZ).
He occupied a variety of influential leadership roles spanning local, regional, and global levels across his professional life, including:
He has served as EGX Chairman since August 2017, appointed by Prime Minister’s Decree No. 1759/2017 and extended by Ministerial Decree No. 326 of 2022. Concurrently, he held the presidency of the Federation of Euro-Asian Stock Exchanges (FEAS) from 2017 to 2019 and again from 2021 to August 2022.
He served as President of the Arab Federation of Capital Markets (AFCM) from 2019 to 2021 and member of the Board of Directors of the Federation until August 2022. He chaired the Emerging Markets Working Group at the Federation of Global Exchanges (WFE) from 2017 to 2021. Before assuming the presidency of the Egyptian Stock Exchange, he served as Chairman and CEO of Dcode EFC – a leading economic forecasting firm in Egypt.
Between 2013 and 2016, he served as an advisor on financial leasing and risk capital for the World Bank in Egypt. He was also a member of the Capital Market Advisory Committee established by FRA. Prior to this, he held the position of Vice Chairman at the Egyptian Stock Exchange from 2010 to 2011.
He is a lecturer in financial markets, international finance, and derivatives at both the American University in Cairo (AUC) and the Arab Academy for Science, Technology, and Maritime Transport (AASTMT).
His academic qualifications:
He holds a Ph.D in Economics of Finance at Cardiff Metropolitan University, UK, followed by a Master’s in Commercial Law and International Finance at King’s College London.
He holds a Master of Science in Quantitative Finance from Bayes Business School – City, University of London, and another Master of Science in Economics specializing in project analysis, investment, and finance from the University of York.
Also, he holds a Master of Business Administration (MBA) in Finance and Banking from the Arab Academy for Science, Technology, and Maritime Transport in Egypt.
Dr. Farid attends Venture Capital Program at UC Berkeley and he holds a Certificate in the Specialized Program for Investment in Economics Analysis – Econometrics Summer School at Cambridge. Dr. Farid holds a Bachelor’s degree in Foreign Trade and Economics from Helwan University.
During his meeting with FRA’s staff , Dr. Farid emphasized that achieving the Authority’s goals requires complete unity, dedication, and hard work from everyone involved. He added that by working together with shared purpose, FRA could establish a global leadership position and enhance Egypt’s reputation.
“We are committed to completing the reform and development process to enhance the non-banking financial sector’s contribution to the national economy and align it with comprehensive development goals,” he stated. “Ensuring the financial stability of markets and institutions, while safeguarding consumer rights within the financial technology landscape, is paramount to achieving financial inclusion and expanding access to non-bank financial services for a wider population.”
Dr. Farid emphasized that the Authority’s leadership is dedicated to fostering a conducive business environment that boosts sector competitiveness and attracts both domestic and foreign investment.
Key Non-Banking Financial Sector Developments:
- Finalizing regulatory and procedural frameworks to establish the first African Voluntary Carbon Market (VCM).
Consequently, three local and international entities have been accredited as Validation and Verification Bodies in Egypt. The Authority is actively engaging with various organizations, federations, and business councils to educate their members about the carbon market and its potential benefits.
- A comprehensive legislative and regulatory framework has been established to expedite digital transformation and expand financial inclusion within the non-banking financial sector.
As a result, four technology outsourcing service providers have partnered with approximately forty non-bank financial institutions, with contracts pending finalization for an additional sixty. Moreover, four companies, including fintech startups, have secured licenses to offer financial technology services.
That is besides a groundbreaking partnership between Misr Life Insurance and Etisalat has been formed to digitize insurance product marketing and distribution. Additionally, a collaborative agreement with the National Telecommunications Regulatory Authority has been established to streamline customer data verification, thereby accelerating digital transformation within the non-banking financial sector.
- To support economic growth and align with global best practices, Egyptian Accounting Standards are being comprehensively developed. This will enable businesses operating in diverse sectors to accurately reflect their financial health and performance. The rapid pace of economic change at local, regional, and global levels has necessitated these enhancements to equip companies with the tools to navigate evolving challenges and achieve their goals.
Subsequently, several major Egyptian economic entities, such as the Talat Mostafa Group, have revalued their assets to accurately represent their financial standing and business performance. This unprecedented step has encouraged numerous companies to explore similar asset revaluation opportunities.
- A robust legislative and regulatory framework has been established to facilitate the operation of gold investment funds and expand investment opportunities.
This framework has catalyzed the launch of three pioneering gold investment funds: AZ-Gold, Belton Evolve, Ahli Financial Investment Management, and Evolve Investment Fund for Daily Cumulative Return (Dahab), affiliated with the National Bank of Egypt (NBE). As of June 27, 2024, these funds have collectively attracted investments of approximately 790 million pounds from 119,000 investors.
- A pioneering actuarial diploma program was established. Simultaneously, the first dollar-denominated pension plan for expatriates was launched in cooperation between the Insurance Federation of Egypt “IFE” and the American University. This initiative resulted in two actuarial diploma programs training 80 participants and the successful introduction of the new pension product.
- To bolster the stability of non-bank financial institutions and align with a risk-based supervisory approach, the Authority has implemented several measures to strengthen their capital positions and risk management capabilities. These initiatives aim to enhance the institutions’ resilience against credit and operational risks.
- After a five-year hiatus, the Egyptian securities industry marked a historic milestone with the establishment of the first Egyptian Securities Federation (ESF).
This pivotal development culminated in the election of the Union’s inaugural board of directors, including the appointment of the Chairman in August 2023.
- The Unified Insurance Law was finally enacted after a nine-year legislative process
- Launching the first responsible pricing index, empowering consumers to make informed financing decisions by comparing available prices and costs across different lenders.
- To bolster the initial public offerings (IPOs) program, comprehensive listing and trading regulations have been established to incentivize companies to join the market and enhance liquidity. These measures aim to expand the ownership base of state-owned enterprises through the capital market.
The Egyptian Stock Exchange has witnessed a surge in trading activity, with total securities and financial instrument transactions reaching a staggering 5.2 trillion pounds between the start of 2024 and April 30th , compared to a mere 239 billion pounds in the same period last year. This dramatic increase is primarily attributed to the introduction of treasury bills as a tradable financial instrument on the Exchange.
Trading surged during the first four months of 2024, witnessing an increase by 152.5% to reach 404 billion pounds compared to the previous year. This growth coincided with a remarkable influx of new investors. In 2022, 178,000 investors entered the market, followed by a staggering 329,000 in 2023, representing an 84.8% increase. The momentum continued into 2024, with 81,000 new investors joining the Exchange through April 30th .
- A decree issued by the Prime Minister on amending the Executive Regulations of Capital Market Law to introduce hedge fund regulations and streamline the IPO process. Additionally, other amendments were implemented to expedite Initial Public Offerings (IPOs), increase corporate capital, and streamline the trading of subscription rights, thereby supporting corporates.
Organizational Development within the Authority
The Authority has undertaken a comprehensive digital transformation initiative. Key systems implemented and developed include the following:
- A comprehensive document management system has been implemented to enhance oversight and accountability. This system enables executive management to monitor workflow and performance. Performance metrics derived from system data are integrated into the employee reward structure.
- The launch of the first interactive map detailing the locations of non-banking financial services branches aims to enhance financial inclusion by making it easier for people to find these institutions.
- The Authority is implementing a comprehensive digital transformation strategy. A key focus is automating committee workflows and decision tracking. Additionally, the Authority is working towards the complete automation of all workflows. Key departments have already initiated the automation of their respective processes.
- Finalizing the development of the Authority’s IT infrastructure and implementing comprehensive cybersecurity measures through software and hardware upgrades.