Egypt Financial Regulatory Authority chair briefs journalists on reform agenda spanning derivatives, short selling, private insurance funds and voluntary carbon market

The Egypt Financial Regulatory Authority published an account of Chair Mohamed Farid’s meeting with economic editors during a two-day training workshop, setting out the authority’s ongoing reform priorities for capital markets, insurance and non-banking financial services. Farid linked the agenda to expanding long-term savings and investment, broadening financial, investment and insurance inclusion, and strengthening the regulation and formalisation of non-banking finance to protect users, support market stability and improve risk management. Recent initiatives highlighted included introducing financial derivatives, market maker mechanisms and securities borrowing for short selling in the capital market; upgrading the investment management of private insurance funds to improve returns and benefits for members and pensioners; and regulating consumer finance and financing for small, medium and micro enterprises to bring activity into the formal economy. The briefing also referenced the launch of a regulated voluntary carbon market for Egypt and Africa, the creation of a regulatory sandbox for financial innovation, updates to Egyptian Accounting Standards including wider use of fair value, and steps to regulate digital investment platforms for real estate fund units; metal investment funds, led by gold, were cited as having attracted more than 200,000 users with net assets above EGP 2.7bn by end-August. Farid framed further product innovation as dependent on an integrated framework of modern legislation, good governance and financial transparency, and said technology adoption should be tied to controls such as listing and trading rules, know-your-customer requirements and database connectivity.