الهيئة العامة للرقابة المالية

Dr. Islam Azzam, FRA Chairman:

• Short selling and market-maker rules are set to launch soon to boost liquidity, pricing efficiency, and investor inflows.
• Banque du Caire’s debut and Misr Life Insurance’s upcoming IPO mark key milestones in driving asset management efficiency.
• Government IPOs receive full FRA backing through streamlined, accelerated, and legally compliant listing procedures.
• Over 90 regulatory decisions issued to revitalize the insurance sector, spur new products and strengthen risk management.

• Recent NBFI reforms balance market growth with the protection of participants’ rights.

Dr. Islam Azzam, FRA Chairman received a delegation from the European Bank for Reconstruction and Development (EBRD) comprising Mark Davis, Managing Director for the Southern and Eastern Mediterranean – SEMED and Head of Egypt Operations; Oumnia Benaddi, Co-Head of Private Equity and Listed Companies at EBRD; and Mike Taylor, Director for Financial Institutions in the Middle East and Africa. The meeting focused on efforts surrounding recent government initial public offerings (IPOs) on the Egyptian Exchange (EGX) and the latest developments across the non-banking financial sector.

Attending the meeting from FRA were Dr. Tarek Seif, FRA Vice Chairman; Mr. Mahmoud Gebril, Assistant to Chairman; and Ms. Christine Beshara, Supervisor of International Relations Central Department.

Dr. Islam Azzam reviewed the ongoing developments in Egypt’s capital market in light of the Authority’s efforts to expand available investment instruments, boost trading efficiency and liquidity and enhance the market’s capacity to absorb new investments. He highlighted the launch of financial derivatives market last March and the imminent rollout of short-selling mechanism.

He added that FRA is also preparing to launch the market-maker mechanism immediately following the operational rollout of short selling. This will bolster liquidity levels and strengthen securities pricing efficiency by encouraging more effective mechanisms to address supply and demand imbalances.

FRA Chairman further outlined updates regarding investment funds and the Authority’s initiatives to introduce new mechanisms capable of absorbing retail and institutional investments in a secure, regulated manner. Most notably, this includes regulating hedge funds for the first time in Egypt, enabling them to invest in derivatives market, short selling and other high-turnover instruments. It also includes the upcoming launch of the first FRA-licensed digital platform for investing in real estate investment funds which will allow individuals to gain indirect ownership in real estate assets through investment units representing shares in the funds’ underlying assets.

Regarding recent government offerings—specifically the commencement of trading on Banque du Caire shares on the EGX and the upcoming IPO of Misr Life Insurance—Dr.  Islam Azzam affirmed FRA’s full support for the executive steps of the second edition of the State Ownership Policy Document. The Authority is streamlining and accelerating procedures while maintaining strict compliance with governing laws, overseeing offering and trading processes, reviewing prospectus data and disclosures alongside fair value assessments, completing necessary regulatory documentation, and coordinating listing, trading and settlement procedures.

He noted that these offerings represent major milestones on an ambitious path aimed at enhancing asset management efficiency, broadening the ownership base, attracting investors capable of developing assets, increasing market capitalization, and deepening the market—objectives that positively impact structural reforms and elevate the competitiveness of the national economy.

Turning to the insurance sector, Dr. Islam  Azzam reviewed the Authority’s regulatory roadmap since the issuance of the Unified Insurance Law No. 155 of 2024, noting that over 90 regulatory decisions have been issued to date. The latest decisions aim to streamline product approvals, simplify procedures and incentivize companies to introduce new products tailored to diverse market segments. They also seek to enhance underwriting and pricing efficiency for credit and guarantee insurance policies to improve risk management through more accurate and comprehensive data, alongside upgrading digital connectivity between insurance companies and FRA to enable more efficient activity monitoring and improve data quality for regulatory and supervisory oversight.