At an American Chamber of Commerce in Egypt seminar, the Egypt Financial Regulatory Authority set out its current priorities across nonbank financial activities, with the clearest near-term market action being the planned activation of short selling and a renewed push for market maker activity. The authority said it is putting the final touches on the short selling mechanism with the Egyptian Exchange and Misr for Clearing, while also treating market makers as a priority as larger government offerings come to market. The update was presented as part of a broader overview of recent regulatory developments and the authority's forward agenda, rather than as a new rulemaking package. For capital markets, the short selling framework is being designed around disclosure, transparency and risk management standards intended to align with international practice, with the stated aim of improving liquidity, market efficiency and the attractiveness of Egyptian securities to domestic and foreign investors. Market makers were described as an important tool for trading stability and liquidity. Participants using that mechanism are exempt from stamp tax, and the authority is considering additional incentives to support institutional investment alongside the listing and offering of major state-owned companies. The authority also said it continues to support government offerings by removing regulatory obstacles during temporary listing periods and by building issuer capacity on disclosure, transparency and governance requirements. Beyond market structure, the authority said fintech remains its top development priority and pointed to work on full digital connectivity with all supervised sectors, use of XBRL and artificial intelligence tools, and the opening of its FRA Sandbox to new ideas, with five projects admitted over 11 months. It also said the insurance regulatory framework under the Unified Insurance Law of 2024 is close to completion after more than 80 decisions focused on governance and solvency, while stressing the need for insurers to apply IFRS 17 and for firms across nonbank finance to maintain international risk management standards.
Egypt Financial Regulatory Authority2026-07-01
Egypt Financial Regulatory Authority says short selling framework is near activation and market maker incentives are under study
Speaking at an American Chamber of Commerce event, the Egypt Financial Regulatory Authority said it is finalizing the framework to activate short selling and is prioritizing market maker arrangements, with stamp tax relief already available and further incentives under review. It also highlighted fintech, digital reporting and the FRA Sandbox as core priorities. In insurance, the authority said the rulebook under the 2024 Unified Insurance Law is close to completion after more than 80 decisions.