Mohamed Farid, Chairperson of the Financial Regulatory Authority (FRA), unveiled key performance indicators for the non-banking financial sector, reporting that total financing granted by FRA-regulated entities reached approximately EGP 911.5bn in 2024. This marks a 2% increase from EGP 893.5bn in 2023.
Speaking at a press conference summarizing the FRA’s 2024 activities, Farid highlighted that stock issuances accounted for 52.6% of total financing, making them the largest component. Financial leasing followed at 13%, while financing for small, medium, and micro enterprises made up 10.5%. Factored securities contributed 8.2%, consumer financing 6.7%, non-equity securities issuances 6.1%, and real estate financing 2.8%.
The event was attended by FRA Vice Chairpersons Islam Azam and Mohamed El-Sayed, FRA Assistant Chairpersons Mohamed Abdel Aziz and Mohamed Sabry, and FRA Media Advisor Mohamed Ayad, alongside other senior FRA officials.
Securities Market
Farid noted an 11% decline in securities issuances—including stocks, bonds, and sukuk—in the primary market, which fell to EGP 535.5bn in 2024 from EGP 601.7bn in 2023. However, total trading value surged by 344.8% to EGP 14.3trn, driven by the introduction of treasury bill trading in September 2023.
Insurance Sector
The insurance sector saw total premiums rise by 34.1% in 2024 to EGP 82.3bn, up from EGP 61.4bn in 2023. Insurance companies paid out EGP 36.7bn in compensations, reflecting a 15% increase from EGP 27.3bn in 2023. Policyholders’ rights grew by 25.7% to EGP 159bn.
Microinsurance premiums climbed by 51.8% to EGP 586.1m, while agricultural insurance premiums rose by 12.9% to EGP 132.4m. Private insurance fund investments increased by 19.7% to EGP 160bn, and governmental insurance fund investments surged by 49.4% to EGP 1.8945bn.
Mortgage Financing
Mortgage finance contracts rose by 144.9% to EGP 25.5bn in 2024. Financial leasing contracts increased slightly by 1.2% to EGP 118.9bn. Factored securities grew significantly by 69.4% to EGP 74.6bn.
Consumer Financing
Consumer financing, a relatively new segment under Law No. 18 of 2020, recorded EGP 61.3bn in 2024, marking a 29.6% increase from EGP 47.3bn in 2023.
Medium, Small, and Micro Enterprises
Outstanding financing balances for medium, small, and micro enterprises reached EGP 80.5bn in 2024, reflecting a 41% increase from EGP 57.1bn in 2023. The number of beneficiaries decreased slightly by 2.3% to 3.7 million. Total financing granted to these enterprises rose by 31.9% to EGP 95.8bn.
Movable Collateral Registry
Farid reported that the total registered movable asset declarations in the Movable Collateral Registry reached EGP 3.1trn in 2024, with approximately 202,000 registered declarations. The total registered value increased by 24.5% from 2023.
Voluntary Carbon Market
The FRA launched Egypt and Africa’s first regulated voluntary carbon market, registering 21 carbon reduction projects by August 2024. The market recorded approximately 145,000 voluntary carbon certificates, covering agriculture and emission reduction projects in Egypt, India, Nepal, and Bangladesh.
Gold Investment Funds
In a bid to diversify investment options, the FRA introduced three gold investment funds under a comprehensive regulatory framework. By December 2024, these funds attracted 166,000 investors, with total investments reaching EGP 1.3bn.
Credit Rating Sector
The FRA opened the credit rating sector to multiple players, allowing global entities to apply for licenses beyond a single operator. As a result, several top-tier consortiums submitted applications, with one already selected and undergoing licensing procedures.
SPACs
New regulatory measures were introduced to facilitate the establishment and listing of the Special Purpose Acquisition Companies (SPACs), attracting venture capital-backed firms. The first SPAC was established under FRA Decision No. 2323 of 2024.
Listing and Delisting Regulations
The FRA revised listing and delisting regulations to simplify capital increase procedures, treasury stock transactions, and the listing of government and corporate debt securities. New provisions also allow conditional listings for large newly established companies and public-private share offerings. Additionally, new rules enable bond and sukuk listings without credit ratings and permit listed firms to acquire unlisted entities without stringent listing criteria.
Corporate Governance
Farid concluded by underscoring the FRA’s commitment to strengthening corporate governance. Regulatory measures were introduced to enhance transparency, disclosure, and investor protection, ensuring sustainable growth within the non-banking financial sector.
