Egypt’s Financial Regulatory Authority (FRA), headed by Mohamed Farid, has issued Decisions No. 17 and 18 of 2025, increasing the maximum funding limit for micro-enterprises and the maximum micro-insurance coverage limit. Decision No. 17 of 2025 raises the maximum loan amount provided by companies, associations, and non-governmental organisations (NGOs) for micro-enterprise funding to EGP 266,000, up from EGP 242,000 – a 10% increase.
The decisions aim to address economic changes and implement the Unified Insurance Law.
This increase aims to enable individuals and companies to access suitable financing for starting or expanding their businesses, enhancing competitiveness. The adjustment reflects the need to counter the effects of inflation and support the state’s economic development plan.
In tandem, the FRA also increased the maximum micro-insurance coverage to EGP 312,500, from EGP 250,000, as per Decision No. 18 of 2025. This adjustment aligns with economic variables and the implementation of the Unified Insurance Law.
The FRA had previously issued Decision No. 268 of 2024, increasing the micro-insurance coverage limit by 25% to EGP 250,000, in accordance with Article 37 of the Unified Insurance Law, which came into effect in July 2024.
These decisions reflect the FRA’s commitment to developing financial, insurance, and investment products suitable for all segments of society, promoting integration among non-banking financial activities to support financial inclusion. Micro-insurance protects a large segment of low-income individuals and enhances their ability to invest in micro, small, and medium-sized enterprises (MSMEs), serving as a developmental tool with macroeconomic impacts.
Farid, Chairperson of the FRA, stated that Law No. 201 of 2020, amending Law No. 141 of 2014 regulating micro-finance activities, grants the FRA’s board the authority to increase the maximum funding limit for micro-enterprises or individuals based on economic conditions. He added that these decisions reflect the FRA’s dedication to continuously developing regulations for non-banking financial activities to ensure business sustainability, especially in micro-finance, given its crucial role in providing appropriate funding to individuals and institutions based on their activities and project size.
Farid noted that the value of financing provided by companies, associations, and NGOs for micro-enterprises reached EGP 73.9 bn in the first 11 months of 2024, benefiting 3.1 m individuals. The value of outstanding financing balances at the end of November 2024 alone amounted to EGP 61.4 bn.
