الهيئة العامة للرقابة المالية

Dr. Mohamed Farid – FRA Chairman:

• Egypt has the essential ingredients – innovative youth and ambitious ideas – needed to build a strong and sustainable economy.
• Entrepreneurship is the true core and driving force of any modern, robust economy.
• FRA is developing non-banking financial legislations to create a regulatory environment that champions and fosters innovation.
• Startup License initiative is a successful, practical example of Smart Regulation.
• The society must normalize failure as a key component of the entrepreneurial process.
• The backbone of the economy rests on the strength of medium-sized startups, not solely on large ones.
• Regulation isn’t a burden; it’s a true source of strength for companies

As part of its strategy to boost innovation and entrepreneurship in the NBFIs, the Financial Regulatory Authority (FRA), led by Chairman Dr. Mohamed Farid, presented a framework at the RiseUp Summit 2025 for building a modern, knowledge-based economy centered on startups.

Dr. Farid outlined key pillars for creating a more flexible and investment-attractive business environment. This strategy solidifies entrepreneurship as the core of the modern economy and commits to developing FRA’s regulatory role to align with digital transformation. Crucially, he emphasized that regulation is a source of strength, not a burden, essential for boosting investor and market confidence.

Dr. Farid highlighted that FRA has already activated Startup License for companies in Non-Banking Financial Activities. Furthermore, the Authority is developing new tools and regulating innovative sectors, including real estate Crowdfunding Platforms and specialized Valuation tools, which necessitate continuous legislative updates.

He affirmed that these steps represent a practical model for Smart Regulation that supports innovation without compromising regulatory controls, as it gives innovative companies the opportunity to test their ideas in an organized and safe environment.

FRA’s vision calls for a crucial cultural shift, accepting experimentation and failure as inherent parts of the success journey. It also highlights the demanding role of entrepreneurs, emphasizing their ability to bear the responsibility of building and growing their companies. This ultimately leads to adopting Smart Regulation as the key to a more sustainable future for Non-Banking Financial Markets.

Furthermore, FRA Chairman affirmed that achieving this vision requires close cooperation among regulatory bodies, entrepreneurs and investors to build a new economy based on flexibility and creativity, stressing that effective regulation and the smart regulatory framework are the foundation for enhancing confidence and attracting local and foreign investments to the Egyptian market.

Dr. Farid emphasized that Entrepreneurship is the true core of the modern economy. He explained that powerful economies are fundamentally built on the effort and energy of individuals who successfully transform their ideas into thriving projects.

He asserted that the success of startups provides the ultimate proof that they are the foundation of major corporations. Every leading institution we see today started small, succeeding through sheer persistence in a market where they were initially dominated by larger players.

Regarding the role of the Authority, Dr. Farid explained that Financial Regulatory Authority (FRA) is the regulating and supervising body for all Non-Banking Financial Activities (NBFIs), ranging from capital markets and investment funds to all forms of financing (real estate, consumer, financial leasing), as well as settlement companies , commodity and financial derivatives exchanges

He pointed out that the Authority’s goal is no longer limited to traditional oversight, but has evolved to include understanding market needs and simplifying regulatory procedures. This reform process took thousands of hours to ensure investor protection and grant confidence to the market.

Proceeding from this role, FRA Chairman affirmed that the presence of regulation does not represent a burden, but rather a true source of strength for companies, as regulated companies gain immediate credibility with investors and funders, opening up prospects for expansion.

He stressed that the absence of a clear regulatory framework is what frightens investors and drives capital away, revealing that the Authority had previously monitored this apprehension towards innovative activities, which prompted it to intervene and regulate these “grey areas” instead of leaving them unregulated.

To embody this thinking practically, he highlighted the Authority’s unprecedented initiative: the issuance of a temporary Startup License in fields of Non-Banking Financial Activities such as real estate finance, consumer finance, financial leasing and factoring. This grants innovators an opportunity to test their business models in an organized and secure environment, without obligating them to meet all the requirements of a full license from day one.

Startup License initiative was an immediate success. FRA Chairman revealed that licensed companies quickly secured new investments because investors instantly gained confidence in activities subject to official regulation. Dr. Farid concluded that this outcome is conclusive proof that “Smart Regulation” does not restrict innovation; it actively opens the way for it.

Dr. Farid stressed the necessity of changing the societal culture that stigmatizes failure. He affirmed that experimentation and failure are a natural and necessary component of the entrepreneurial journey, pointing out that global statistics show only 2 out of 10 startups succeed and those two are responsible for major market change.

He clarified that the goal is not just to produce corporate giants like “Amazon,” but to build “strong medium-sized companies” that serve as the backbone of the economy, integrating large and small players into one complete system.

Dr. Farid offered a dose of reality about the entrepreneurial path, noting it is not a luxury, but a multiplied responsibility and constant pressure. He summarized the entrepreneur’s burden directly: “Anyone starting a new company must know that work is not a luxury. They are the one who will track expenses, manage the team, deal with crises, pay the rent and ensure the company does not collapse. The responsibility is multiplied and pressures are continuous, but this is part of building the dream.”

FRA Chairman concluded by reiterating the core function of “Smart Regulation,” clarifying that FRA’s role is not to innovate for entrepreneurs, but to provide them with the safe, organized space they need to unleash their own creativity.

He affirmed that the Authority is moving forward in developing legislation to create an environment that fosters innovation, because combining flexible regulation with boldness in experimentation is what will make Egypt a regional hub for entrepreneurship and innovative finance, adding that effective regulation is the genuine guarantee for the confidence of local and foreign investors in the Egyptian market.

He added that Egypt possesses innovative youth, ambitious ideas and a large market, and that if we combine flexible regulation with boldness in experimentation, we will achieve a more powerful and sustainable economy and become a regional hub for entrepreneurship and innovative finance in the region.

RiseUp Summit 2025 inaugurated a new PropTech (Real Estate Technology) partnership between RiseUp and Misr Italia Properties. This landmark event was held at Cairo Business Park, East Cairo’s rapidly growing innovation hub. This strategic alliance represents the first step toward uniting the entire industrial ecosystem – developers, brokers, FinTech, PropTech firms and contractors – in a single dedicated center. Crucially, RiseUp and Misr Italia are also collaborating to establish the first PropTech Innovation Hub in the Middle East and North Africa (MENA) region within Cairo Business Park.