الهيئة العامة للرقابة المالية

• 64 Million clients benefit from FRA-regulated activities, with financing contracts exceeding 9.8 million and a default rate below 3%.
• All companies and entities across various sectors are now mandated to implement “Basel III” standards and adhere to “Creditworthiness” principles.
• Capital market indicators show an upward trend, with strong performance from investment funds led by “Precious Metals.”
• Growth continues across insurance, finance and factoring.

The latest statistics released by the Financial Regulatory Authority (FRA) chaired by Dr. Islam Azzam, reveal significant growth across Egypt’s non-banking financial sector (NBFS). Despite emerging market uncertainty and economic volatility driven by rapid regional and international developments -including global interest rate shifts and fluctuating capital flows – the sector has demonstrated remarkable resilience.

The data indicates that total financing granted by FRA-regulated entities reached approximately EGP 1.4 trillion by the end of 2025. This figure represents roughly 54% of the total financing provided by the Egyptian financial sector to the private sector, households, and individuals.

The NBFS currently comprises 2,532 regulated companies and entities, serving a massive client base of over 64 million. These institutions and their branch networks span the entire republic, maintaining a strong presence in underserved and high-need areas.

Regulatory Oversight Drives Sector Growth

By the end of 2025, the total value of non-banking financial portfolios reached EGP 417 billion, with the number of financing contracts exceeding 9.8 million. Notably, default rates remained exceptionally low, recorded at less than 3%.

Dr. Islam Azzam explained that these positive developments are a direct result of FRA’s rigorous regulatory role. By ensuring the integrity and resilience of this vital sector while balancing the interests of citizens and investors, FRA bolsters stakeholder confidence and enhances market depth and stability.

Dr. Azzam further highlighted the mandatory implementation of Basel III international standards across all non-banking financial activities. Under FRA Board Resolution No. 137 of 2025, all companies and entities are required to adhere to these standards when calculating capital adequacy, financial leverage, liquidity ratios and individual or sectoral concentration limits.

The same resolution mandates that non-banking finance companies adhere to ‘Creditworthiness’ standards prior to granting credit. These standards aim to verify compliance with technical benchmarks that ensure the quality of the credit portfolio and the credit standing of clients before disbursement, as well as the financial solvency required to guarantee repayment capacity. This process further includes reviewing credit policies, conducting background checks, performing risk analysis, and inspecting concentration limits and ratios.

Dr. Azzam added that this approach stems from the Authority’s conviction that the “pre-granting” stage serves as the primary line of defense against non-performing loans (NPLs). This ensures that financing decisions are predicated on sound technical foundations rather than mere quantitative expansion, thereby bolstering investor confidence in the non-banking financial sector.

Furthermore, should a finance company seek to securitize its future financial rights, it is required to undergo a technical and regulatory audit of its securitization portfolios by FRA to ensure asset quality and safeguard bondholders’ rights. The Inspection and Oversight Sector, in coordination with the Corporate Finance Sector, conducts a rigorous review of the “future financial rights portfolio”—comprising assets such as auto installments, real estate mortgages, or consumer loans—prior to granting final approval for the issuance of securitization bonds. Additionally, the process entails more audit requirements to ensure stringent compliance with technical and legal standards. These include the verification of legal documentation for the assignment of rights by the transaction’s legal counsel, alongside the submission of an independent auditor’s report

FRA also conducts inspections of licensed custodians to monitor outstanding securitization issuances, ensuring the seamless repayment of the assigned portfolios backing the issued bonds.

Notable Surge in Capital Market Performance

In the capital markets sector, the number of operating entities reached 978 by the end of 2025, comprising 253 listed companies, 538 operating firms and 172 investment funds.

Capital market indicators reflected improved liquidity levels, an expanding investor base and increased engagement with various market mechanisms. This progress was underpinned by strict adherence to regulatory frameworks, disclosure requirements and governance standards. Consequently, the Egyptian Exchange (EGX) indices recorded significant growth from the beginning of the year until April 30, 2026.

The benchmark EGX30 surged by 26.56%, while the EGX35-LV index rose by 25.6%. Additionally, the EGX30 Capped increased by 25.4% and the EGX33 Shariah index grew by 22.42%.

Regarding market valuation, total market capitalization climbed to approximately EGP 3.668 trillion by the end of April 2026 – an increase of roughly EGP 669 billion (22.3%) compared to December 2025. This rise reflects the increasing value of listed companies and a heightened investment appetite within the securities market.

On the other hand, trading values and volumes have witnessed clear growth since the beginning of the year until the end of April. Daily trading values exceeded EGP 13 billion, while total trading for listed shares during this period reached approximately EGP 579 billion, marking a 62% growth rate compared to the same period last year.

Furthermore, trading value of bonds and treasury bills rose by approximately 50%, reaching EGP 7.654 trillion during the first four months of 2026. This momentum was driven by increased activity from both individual and institutional investors, alongside the diversification of available investment instruments.

During the first four months of the current year, the number of newly registered investors (coded investors) more than doubled, reaching 228,000 compared to approximately 83,000 during the same period last year.

This surge is attributed to the issuance of executive regulations for Law No. 5 of 2022 which governs the use of Financial Technology (FinTech) in non-banking financial activities. The law facilitates the establishment, licensing, and approval of entities wishing to conduct non-banking financial activities via FinTech solutions, significantly streamlining the onboarding process for new investors.

Positive Indicators for Investment Funds

FRA statistics for the first quarter of 2026 reveal a strong performance across the investment fund sector. Notably, precious metals investment funds (Gold and Silver) recorded the highest returns, reaching 20.37% quarterly. These funds provide a strategic gateway for investors to gain exposure to precious metals through small-scale capital outlays.

Meanwhile, Index Funds and Private Equity Funds recorded returns of 7.54% and 7.21%, respectively, during Q1 2026. These quarterly figures reflect annual returns of 30.16% and 28.84%, respectively, excluding dividend distributions.

The volume of investment fund units also witnessed significant growth, rising to 31.4 billion units during the same period, compared to 20.3 billion units at the end of December 2025. This surge underscores a rising level of investment awareness and a broadening participant base within the investment fund ecosystem.

The Insurance Sector: A Strategic Transition Under the “Unified Law”

The insurance sector is currently navigating a pivotal transitional phase following the enactment of the Unified Insurance Law No. 155 of 2024.  FRA Statistics reveal that the sector now comprises 169 active entities, including insurance companies, brokerage firms, loss adjusters, and insurance consultancy firms, in addition to 6 insurance pools.

By the end of 2025, the number of policyholders rose to approximately 15 million. Total Premiums reached EGP 130.8 billion, compared to EGP 106.7 billion at the end of 2024—a 22.5% increase. Furthermore, total claims paid by insurance companies amounted to EGP 64.4 billion at the end of 2025, compared to EGP 46.6 billion in 2024, marking a 38.2% increase.

Private Insurance Fund sector grew to 671 funds serving 5 million members by late 2025. Total investment value saw a 20% upswing, climbing to over EGP 201 billion from EGP 168 billion in the previous year.

Meanwhile, the number of Government Insurance Funds reached 6 funds, serving 30 million members. The total value of their investments stood at approximately EGP 2.1 billion, compared to EGP 1.5 billion at the end of 2024.

Significant Growth in the Non-Banking Financial Sector

The non-banking financial sector has witnessed a notable growth, driven by recent legislative developments regulating various financing activities and the Authority’s regulatory resolutions. These measures introduced frameworks for conducting activities through Financial Technology (FinTech) and mandated that licensed companies provide diverse insurance coverages. Furthermore, the resolutions established governing conditions and rules for market practice, required financial solvency standards, and defined supervisory and oversight protocols. They also encompassed the regulation of client-provided guarantees, alongside the introduction of collaborative mechanisms with relevant federations to combat fraud, unauthorized liquidations, and other harmful practices or violations.

By the end 2025, mortgage Finance sector demonstrated robust expansion, with 25 licensed companies extending approximately EGP 42.7 billion in financing to 115,000 clients—a significant 67.5% increase from EGP 25.5 billion in 2024. Similarly, the Financial Leasing contract values expanded by 50.8%, totaling EGP 179.2 billion across 44 licensed entities.

Consumer Finance sector maintained its upward trajectory with 48 active licenses, providing over EGP 96.3 billion in funding 10.8 million beneficiaries, marking a 57% growth rate over the previous year.

On the other hand, microfinance sector comprises 23 companies, 494 associations, and one micro-leasing firm. Additionally, it includes 11 companies, one association, and one civil foundation dedicated to Small and Medium Enterprises (SMEs). By the end of 2025, the total value of financing granted to SMEs and micro-enterprises reached EGP 106.9 billion, compared to approximately EGP 95.8 billion the previous year—reflecting a 24% growth rate. Conversely, the number of beneficiaries witnessed a slight decline from 3.7 million by the end of 2024 to 3.6 million by the end of last year.

Despite a strategic suspension of new licenses for consumer and microfinance, the sector maintained an upward trajectory through 2025.

The total value of secured movable assets reached EGP 4.3 trillion by the end of 2025. Total registrations reached 248,000, marking a significant 39.7% annual growth

Meanwhile, factoring activity witnessed substantial momentum in 2025, supported by 41 licenses. The number of active clients (assignors) grew by approximately 30% compared to 2024, while the total value of factored receivables climbed to EGP 132.2 billion, up from EGP 74.6 billion in 2024—achieving a remarkable growth rate of 77.3%.

Dr. Islam Azzam underscored the Authority’s commitment to bolster non-banking financial activities through strategic insurance integration. By establishing a comprehensive protection umbrella, the Authority aims to provide market participants with tailored insurance solutions designed to meet the specific risk profiles of diverse sectors. Additionally, he emphasized the activation of investor protection funds as a vital mechanism for enhancing risk management efficiency.

The Authority also continues its efforts to raise levels of financial literacy among market stakeholders and participants. These efforts focus on defining the benefits and risks of non-banking financial activities, hosting community dialogues to foster transparency, trust and market stability, and exchanging expertise to combat harmful practices and resolve emerging obstacles within the various sectors.