On October 6, 2026, Egyptian Prime Minister Mostafa Madbouly met with Financial Regulatory Authority (FRA) Chairman Islam Azam to discuss developments in the non-banking financial sector. The meeting, held in the New Capital, focused on enhancing the efficiency of the capital market, insurance, and non-banking finance sectors. Madbouly stressed the sector's vital role in driving the national economy, attracting investment, and expanding private sector participation.
During the meeting, Madbouly highlighted the importance of protecting citizens' rights through safe investment avenues under the FRA's supervision. He noted that the regulatory framework governing the sector's activities reflects the state's priority on protecting participants' rights. Azam reviewed recent decisions aimed at improving service quality, meeting citizens' needs, and enhancing supervisory performance.
Azam discussed recent FRA decisions, including measures to strengthen safeguards for responsible financing, reduce defaults and fraud, and combat money laundering. These measures include requiring financing entities to use one-time passwords to verify customer identity and obtain credit assessments based on customers' behavioral analysis. The FRA also obliges consumer finance companies to have real-time connectivity with the credit information company.
The FRA chairman explained that the authority is working on full integration with companies under its supervision to access real-time data and facilitate advanced analysis using artificial intelligence technologies. This integration will enable the FRA to make data available to the market, helping companies make efficient decisions and improve insurance and financing products.
Azam emphasized that providing customers with information related to insurance and financing products, while informing them of their rights and obligations, is a fundamental pillar of non-banking financial activities. He also noted that the FRA is seeking to strike a balance between promoting financial activity growth and protecting market participants.
The meeting addressed the FRA's efforts to enhance company efficiency and broaden risk management scope beyond credit risk to include market and operational risks. Azam noted that Basel III standards will be applied to the non-banking finance sector starting next January. He also referred to a decision establishing controls for underwriting and pricing credit and guarantee insurance policies.
The Egyptian Exchange has seen significant growth, with over 171,000 newly registered investors by the end of the second quarter of the current year. Trading values surpassed LE 6.4 trillion, an increase of approximately 78.3 percent compared with the second quarter of last year. Investment funds recorded a 14.7-percent increase in net asset value, reaching LE 471 billion across 224 funds.
Key points
- Egypt's Prime Minister Mostafa Madbouly emphasizes the importance of the non-banking financial sector in driving the national economy.
- The Financial Regulatory Authority (FRA) is working on full integration with companies under its supervision to access real-time data.
- The Egyptian Exchange has seen significant growth, with over 171,000 newly registered investors and a 78.3 percent increase in trading values.
