Egypt’s FRA boosts youth participation in stock market with new reforms

The Financial Regulatory Authority (FRA) announced on Monday a new initiative to increase youth participation in Egypt’s stock market.

Under Decision No. 286 of 2024, announced on Monday by FRA Chairman Mohamed Farid, the minimum age for investing in securities on the Egyptian Stock Exchange (EGX) has been reduced to 15 years from the previous threshold of 16 years, as per Decision No. 23 of 2021.

The FRA has also raised the maximum investment portfolio limit for young investors to 40,000 Egyptian pounds, up from 10,000 pounds. Additionally, annual portfolio growth of up to 10 per cent is now permitted. High-risk activities, including margin trading and securities borrowing for short selling, remain excluded to safeguard young investors.

The move aligns with amendments to the Civil Status Law No. 143 of 1994, which lowered the age for obtaining a national ID card to 15 years. Youth can invest funds earned from work or received as personal allowances. Those aged 18 and older may also invest with parental or legal authorisation, or under self-management provisions outlined in the Civil Code and guardianship laws.

To support young investors, the FRA is requiring brokerage firms, portfolio managers, and investment funds to develop educational materials tailored to this demographic. These resources aim to enhance financial literacy and empower youth to make well-informed investment decisions.

This decision reflects the FRA’s broader mission to promote financial inclusion and integrate youth into non-banking financial services. By simplifying access to investment opportunities and fostering financial awareness, the FRA seeks to encourage secure and responsible financial practices among Egypt’s younger generations.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser