The Egypt Financial Regulatory Authority (FRA) issued a first-of-its-kind regulatory decision requiring government insurance funds to invest in equities listed on Egyptian exchanges through open-ended investment funds. The requirement applies where a fund’s investments exceed EGP 100 million, with an allocation range of 5% to 20% of the fund’s total assets. Exposure to any single open-ended investment fund is capped at the lower of 5% of the government insurance fund’s total assets or 10% of the open-ended fund’s net asset value. Government insurance funds supervised by the FRA serve around 29 million beneficiaries; the FRA reported total investments of about EGP 2.1 billion as of 30 June 2025. The announcement also referenced earlier requirements applying similar equity-fund allocations to private insurance funds and a minimum 5% allocation of insurers’ free funds into open-ended funds investing in listed equities. Government insurance funds have six months to align their positions with the new requirements, with the deadline extendable if needed.
Egypt Financial Regulatory Authority2025-12-07
Egypt Financial Regulatory Authority mandates government insurance funds over EGP 100 million to invest 5–20% in listed equities via open-ended funds
The Egypt Financial Regulatory Authority mandates government insurance funds to invest in equities on Egyptian exchanges via open-ended funds, applicable to those with investments over EGP 100 million. Allocations must be 5% to 20% of total assets, with exposure to any single fund capped at 5% of the insurance fund's assets or 10% of the open-ended fund's net asset value. This affects funds serving 29 million beneficiaries, with total investments of EGP 2.1 billion as of June 2025.