Egypt’s FRA reports strong progress in financial sector reforms

Egypt’s Prime Minister Moustafa Madbouly met with the Financial Regulatory Authority (FRA) CEO Mohamed Farid to discuss key developments within the non-banking financial sector. During the meeting, Farid presented a report highlighting the FRA’s ongoing efforts to enhance the role of the sector and its impact on Egypt’s sustainable development.

Carbon market and climate finance initiatives gain momentum

Farid highlighted the FRA’s progress in enhancing the sector’s role in sustainable development. This includes the activation of a regulated voluntary carbon market, the forthcoming launch of a regulatory sandbox for fintech activities, and Egypt’s first online platform for registering carbon emissions reduction projects. By the end of March 2025, 28 projects from various countries had already been registered with the FRA, with 5,000 carbon credits traded and 170,000 credits listed in its database.

Crowdfunding regulations to support inclusive investment

The FRA is also finalising regulations to enable crowdfunding in real estate and equity markets, following the completion of the necessary legislative frameworks. This step is intended to broaden access to innovative investment tools and cater to the increasing interest of individuals in the sector, while also ensuring robust investor protection through sound regulatory oversight.

Fintech ecosystem expanding under Law No. 5 of 2022

In addition, Farid confirmed that the FRA has implemented the legal and regulatory foundations for digital transformation, in accordance with Law No. 5 of 2022 and related board decisions. So far, 7 companies have applied for registration in the authority’s fintech outsourcing registry, with 4 already collaborating with 84 non-banking financial institutions. Three more firms are in the process of completing registration, while the FRA has also approved the establishment of four fintech start-ups, with another seven applications currently under review.

Insurance sector investment rules diversified under new law

Moreover, the FRA has amended investment guidelines for insurance companies and private insurance funds, introducing diversified investment channels such as metals-backed funds, open-ended equity funds, and venture capital funds. Insurance firms are now mandated to allocate portions of their capital to these instruments—measures that align with the Unified Insurance Law issued in July 2024. This law empowers the FRA to regulate sector performance and aims to expand insurance coverage nationwide.

Gold investment funds attract strong public interest

The FRA has authorised the launch of 3 gold investment funds—AZ-Gold, Al Ahly Financial Investments Fund, and Beltone-Evolve Gold Fund—while a 4th has received approval and is currently raising subscriptions. As of 27 March 2025, total investments in these funds had reached 1.7 billion Egyptian pounds, attracting over 184,600 investors.

Listing reforms and SPAC rules boost capital markets

Farid also explained that listing rules on the Egyptian Exchange (EGX) have been updated to support Special Purpose Acquisition Companies (SPACs). The new regulations allow for acquisitions via mergers, share swaps, and credit balance deals, providing more flexible acquisition mechanisms. As a result, Egypt’s first venture capital SPAC was listed, raising its capital from 10 million to 235 million Egyptian pounds through qualified investors.

Legislative roadmap targets stronger markets and broader ownership

Looking ahead, Farid outlined the FRA’s legislative roadmap, which includes proposals to facilitate the formation of direct investment and venture capital funds, expand ownership in clearinghouses, and restructure stock exchanges. These initiatives aim to enhance market liquidity, increase public offerings, and ensure alignment with Egypt’s State Ownership Policy Document while promoting competitive neutrality.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama