In a keynote speech, Egypt Financial Regulatory Authority chair Mohamed Farid outlined the regulator’s strategy for developing the non-banking financial sector, centred on maintaining stability while expanding products, attracting investors and protecting their rights. He also flagged near-term market reforms, including the introduction of short selling and a market-maker framework, and an intention to grant the Egyptian Exchange a licence to trade financial derivatives by end-January 2026. Farid attributed recent capital-market growth to regulatory and legislative changes, citing market capitalisation of around EGP 3 trillion and daily trading volumes of about EGP 8 billion. He highlighted work to “localise” international rules, including a framework that enabled the first Egyptian special purpose acquisition company, and the creation of regulated carbon markets alongside early steps towards requiring financial companies to measure their carbon footprints. Other initiatives included launching a title deed insurance policy to protect property buyers from historical ownership disputes, organising holding private pension funds as qualified savings vehicles, and continuing digital transformation through e-KYC, which has processed around 400,000 electronic verification checks, as well as issuing the first approval for a microinsurance company. The short selling and market-maker mechanisms are being prepared following technical and regulatory adjustments. The regulator is coordinating rules for derivatives trading ahead of the planned exchange licence, while continuing work on broader technology infrastructure across non-banking financial sectors and supporting expanded online distribution of insurance policies.
Egypt Financial Regulatory Authority2025-12-16
Egypt Financial Regulatory Authority signals imminent short selling and market making and plans to license derivatives trading for the Egyptian Exchange by end-January 2026
Egypt Financial Regulatory Authority chair Mohamed Farid outlined a strategy to develop the non-banking financial sector, focusing on stability, product expansion, and investor protection. Near-term reforms include introducing short selling, a market-maker framework, and licensing the Egyptian Exchange for derivatives trading by January 2026. Farid noted capital-market growth due to regulatory changes, with initiatives like localising international rules, creating carbon markets, and advancing digital transformation through e-KYC.