The Egypt Financial Regulatory Authority (FRA) used a panel discussion at the launch of Entlaq’s report on Egypt’s fintech environment to set out how its regulatory framework is supporting faster digitalisation and fintech adoption across non-banking financial services, including via a regulatory sandbox and easier market entry for fintech startups. The sandbox for technology applications allows non-banking financial services providers and entities registered on the fintech outsourcing register to test innovative fintech applications, including business models and related mechanisms, with an emphasis that digital transformation requires robust systems and data protection. The FRA pointed to the regulatory package developed since the 2022 fintech law, including 2023 rules on technology infrastructure and safeguards, digital identity and digital contracts, and the outsourcing register, with four outsourcing providers registered and contracting activity underway with around 84 non-banking financial institutions. To support startups, the FRA updated startup valuation methodologies and reduced the minimum capital required for fintech startups undertaking non-banking financing activities to EGP 15 million from EGP 75 million, while mortgage finance remains subject to a EGP 100 million minimum, and it has approved the establishment and licensing of three startups across different non-banking financing activities. Capital markets initiatives covered new SPAC listing and trading rules requiring at least EGP 10 million issued and paid-in capital for temporary listing and a cash increase to EGP 100 million within three months, alongside approval of Egypt’s first venture capital SPAC targeting non-banking financial services and fintech. The FRA also highlighted the introduction of automated investment advice through a robo-advisor framework for portfolio management firms, and noted that it is studying the near-term use of artificial intelligence algorithms in additional activities beyond asset management.
Egypt Financial Regulatory Authority 2025-02-26
Egypt Financial Regulatory Authority outlines fintech measures including a regulatory sandbox and a lower EGP 15 million minimum capital for startups
The Egypt Financial Regulatory Authority (FRA) supports digitalisation and fintech in non-banking financial services through a regulatory sandbox and reduced capital requirements for fintech startups. Initiatives include updated startup valuation methodologies, new SPAC listing rules, and automated investment advice via a robo-advisor framework. The FRA is also exploring artificial intelligence algorithms beyond asset management.