New Capital:Prime Minister Moustafa Madbouly affirmed the state's dedication to the development of the non-banking financial sector, emphasizing its crucial role in propelling the national economy, attracting investments, and increasing private sector participation. The Prime Minister underscored the importance of offering citizens secure investment routes under the Financial Regulatory Authority's (FRA) supervision, particularly through the Egyptian Exchange (EGX) and licensed investment funds.
According to State Information Service Egypt, Madbouly's remarks were made during a meeting with FRA Chairman Islam Azam. The meeting focused on monitoring progress within the non-banking financial sector and reviewing the authority's efforts to enhance market efficiency, protect participant rights, and increase the sector's economic contributions.
Azam presented recent developments in regulatory frameworks, including decisions aimed at improving service quality and supervisory performance. These measures are designed to address and prevent negative practices, resolve customer complaints quickly, and protect customer assets. Key actions include using one-time passwords for identity verification and ensuring real-time connectivity with credit information companies.
Further efforts were highlighted to integrate FRA operations with supervised companies, allowing access to real-time data and advanced analysis using artificial intelligence. These initiatives aim to improve decision-making and enhance the quality of financial products. Azam emphasized the importance of providing comprehensive information to customers and protecting their data.
Azam also stressed the significance of preventing misleading information about savings and investment products. The FRA is focused on achieving financial inclusion as part of Egypt Vision 2030, balancing financial activity growth with customer protection to ensure sustainable development.
The FRA's efforts to boost company efficiency and expand risk management were also discussed, including the application of Basel III standards to the sector starting next January. Recent decisions set controls for underwriting and pricing insurance policies, aiming to modernize the capital market with transparency and sound governance.
Investment opportunities and upcoming offerings on the Egyptian Exchange were reviewed, with training initiatives for company employees to facilitate permanent listings. Azam mentioned preparations to launch short selling, complementing recent developments like the financial derivatives market launch and hedge fund activity regulation.
The meeting noted significant growth in the Egyptian Exchange, with newly registered investors exceeding 171,000 and trading values reaching EGP 6.4 trillion. Investment funds also saw a 14.7-percent increase in net asset value, highlighting growing confidence in these financial instruments.