The Financial Regulatory Authority (FRA) held a meeting with legal consultancy firms last week to discuss suggestions regarding regulations for new types of financing tools in the capital market.
Sources said that the proposals include social bonds, sustainability bonds, environment bonds, and gender bonds. They pointed out that the FRA listened to the consultants’ proposals regarding the implementation procedures and the regulatory framework for the issuance of these new types.
The authority also listened to proposals for activating the green bonds market, as well as mechanisms for activating the secondary market for bonds.
Mohamed Farid, head of the FRA, said earlier that the current stage is witnessing an increase in the demand of economic entities for financing tools provided by non-banking financial entities, which reflects the importance of the non-banking financial sector as it provides innovative financing solutions that take into account the needs of companies for growth and expansion.
He stressed that the authority is moving forward in adopting and implementing policies and action plans to develop and revitalize the capital market in an integrated manner, including debt instruments represented in corporate bonds, securitization bonds for future and future financial rights, in addition to sukuk, with the aim of deepening the securities market, in line with the development of the authority’s comprehensive strategy for non-banking financial activities. Various financing solutions are provided to the entities licensed to engage in real estate financing, consumer financing, financial leasing, factoring, and microfinance, in order to achieve integration between non-bank financial activities subject to the authority’s supervision.
He added that financial solutions are financing and investment tools for institutions and individuals. They require continuing to improve and develop procedures for issuing these tools for their prominent role in financing companies, bodies and public legal persons. He explained that allowing trading on them to be issued and registered in an orderly and legal manner encourages many individuals and institutions.
