In a keynote speech, Egypt Financial Regulatory Authority deputy chairman Islam Azzam said the authority will soon start applying Basel III capital adequacy standards to non-bank finance companies following industry dialogue, and outlined parallel initiatives spanning stock exchange listing rules, SPAC regulation, a regulated voluntary carbon market, gold investment funds and the Unified Insurance Law. On prudential requirements, he cited 95% compliance with the authority’s minimum paid-up capital requirement of EGP 75m for non-bank finance activities, with mortgage finance subject to a EGP 100m minimum. Capital market reforms include continued development of Egyptian Exchange listing rules and a framework for Special Purpose Acquisition Companies, including more flexible provisions, adding acquisition by merger alongside other permitted acquisition routes, allowing trading of shares subscribed in SPAC capital increases at the subscription price, and permitting public trading of SPAC shares after the acquisition is completed. He also referenced the listing of the first venture capital SPAC, which started with EGP 10m in capital and later increased to EGP 235m from qualified investors. On sustainable finance, he pointed to the launch of a regulated voluntary carbon market for trading emission reduction certificates, with projects registered from India, Oman, Bangladesh and Egypt, 5,000 certificates traded and 170,000 certificates registered in the authority’s database. He also noted that three gold investment funds have been launched under a dedicated legislative and regulatory framework, with total investments of EGP 2.1bn from 200,000 retail investors as of 23 April 2025, and that another fund has been approved and is in the subscription coverage process. For insurance, he highlighted the Unified Insurance Law’s application to insurance and reinsurance and related services, and its allocation to the authority of exclusive responsibility for establishment, licensing, supervision and oversight. He also said the authority will soon launch a regulatory sandbox for the non-bank financial sector.
Egypt Financial Regulatory Authority 2025-05-14
Egypt Financial Regulatory Authority to begin Basel III solvency standards for non-bank finance firms with 95% already meeting EGP 75m capital floor
The Egypt Financial Regulatory Authority will implement Basel III standards for non-bank finance companies and has outlined initiatives including stock exchange listing rules, SPAC regulation, a voluntary carbon market, and gold investment funds. It reports 95% compliance with its minimum paid-up capital requirement for non-bank finance activities and highlights capital market reforms, including flexible SPAC provisions and the listing of the first venture capital SPAC. Additionally, the authority will launch a regulatory sandbox for the non-bank financial sector.