The Financial Regulatory Authority issued Decision No. 70 of 2026 to regulate takaful insurance activities. The framework aims to revitalise the market in line with the Unified Insurance Law.
The Financial Regulatory Authority, chaired by Islam Azzam, released Decision No. 70 of 2026 on 10 May 2026. It sets rules for companies licensed to practise takaful insurance in Egypt. The regulations replace the previous framework from Decision No. 23 of 2019 and take effect after publication in the Egyptian Gazette.
Azzam stated that the decision combines wakala and mudaraba models to give companies flexibility while protecting policyholders. It defines three structures for managing participants’ funds and requires separate accounts for shareholders and participants. Companies must also form an independent Sharia supervisory committee of at least three members.
The rules cover surplus distribution, reserve formation and deficit handling. Insurance surpluses cannot go to shareholders. Reinsurance must be placed with takaful providers where possible, though conventional options are allowed with prior approval in limited cases.
The framework supports compliance with Sharia principles and seeks to attract new investors while ensuring financial stability.