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 Authority 2025-12-07
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.