The Financial Regulatory Authority (FRA) has released its 2025 annual report, titled From Regulation to Empowerment, documenting unprecedented advances in Egypt's non-banking financial activities. Mohamed Farid, the FRA chairperson, described 2025 as a turning point in reaping the benefits of reforms launched since 2022.
In its annual report, the FRA stated that its regulatory decisions have evolved into effective empowerment tools, contributing to stronger economic growth and deeper financial markets. Farid emphasized that technology has become the common thread in developing all non-banking financial sectors, with the authority treating digital transformation as a core empowerment tool. He noted extensive dialogue with market participants to balance innovation, user protection, and stability.
The FRA institutionalized innovation through its regulatory sandbox, fostering an ecosystem of 73 fintech companies, including 45 operational ones. Digital identity verification (E-KYC) saw about 354,000 operations, while 189,000 digital contracts were signed, reducing access times and costs.
Egypt's capital market hit a record with EGP 15.7trn in trading value, up from EGP 2.3trn in 2024, including EGP 13.1trn in treasury bills and bonds. It welcomed 299,000 new investors, boosted by reforms. New products included SPACs like Catalyst Partners Middle East with EGP 3bn capital, and Egypt's first reverse acquisition where Egytrans acquired NOSCO, raising capital to EGP 224.9m.
Non-banking finance injected EGP 105.3bn into SMEs for 4.2 million beneficiaries, leasing reached EGP 147.2bn, and mortgage finance EGP 24.3bn with 51.9% growth. Insurance premiums rose 30.6% to EGP 110.1bn. The FRA launched a derivatives market and Egypt's first organized voluntary carbon market, while registering EGP 3.2trn in movable collateral.
Farid concluded that these results demonstrate the FRA's success in creating a more efficient, competitive non-banking financial market, rooted in digital transformation, innovation, and investor protection to support sustainable growth.