The Egypt Financial Regulatory Authority published a briefing on its recent and planned initiatives for the non-banking financial sector, spanning digital transformation, the voluntary carbon market, capital markets and insurance. It flagged an imminent launch of a regulatory sandbox for non-banking finance and a first website to register carbon emissions reduction projects, and reported that it is close to finalising a framework for participatory financing (crowdfunding) in real estate funds and equities. On carbon markets, the authority reported the launch of an organised and monitored voluntary carbon market for trading voluntary carbon certificates, with around 28 projects from multiple countries registered in its database, 5,000 certificates already traded and 170,000 certificates registered. On digitalisation, seven firms have applied to be listed as fintech outsourcing service providers, with four already registered and working with around 84 non-banking financial firms; three others are completing registration. The authority also approved the establishment of four fintech start-ups in non-banking finance, received 14 applications from existing sector firms to go digital and is reviewing requests for seven additional start-ups. In insurance and pensions, it amended investment rules and limits for private insurance funds and insurers, expanded eligible assets to include (among others) metals-linked fund units and open-ended equity funds, and set new allocation requirements including a minimum 2.5% of paid-up capital into open-ended equity funds and 5% of invested funds into commodities and metals funds or metals-backed instruments traded on Egyptian exchanges, alongside caps for real estate fund exposure of up to 10% for life insurers and 5% for property and liability insurers. It also reported that three gold investment funds have launched and, as of 27 March 2025, had attracted EGP 1.7bn from 184,600 investors, with a further fund approved and in subscription. Looking ahead, the authority pointed to planned legislative amendments to the Consumer Finance Law and the Capital Market Law to ease the establishment of private equity and venture capital funds, expand the ownership base of clearing companies and change the legal form of exchanges. It also reported 2024 risk-based supervisory inspections covering more than 200 supervised firms across capital markets, non-banking finance and insurance.
Egypt Financial Regulatory Authority 2025-04-08
Egypt Financial Regulatory Authority prepares launch of a non-banking financial regulatory sandbox and reports progress on voluntary carbon trading and investment reforms
The Egypt Financial Regulatory Authority outlined initiatives for the non-banking financial sector, including digital transformation, the voluntary carbon market, and insurance. Key developments include a regulatory sandbox for non-banking finance, a framework for participatory financing, and amendments to investment rules for private insurance funds. The authority also plans legislative changes to the Consumer Finance Law and Capital Market Law to facilitate private equity and venture capital funds.