Islam Azzam, chairperson of the Financial Regulatory Authority (FRA), held an expanded meeting with representatives of companies financing micro, small, and medium enterprises (MSMEs), emphasizing responsible pricing frameworks. He stressed balancing business sustainability and client protection to build confidence and drive sector growth.
Islam Azzam, chairperson of the Financial Regulatory Authority (FRA), convened an expanded meeting with representatives of companies financing micro, small, and medium enterprises (MSMEs), reinforcing the authority's commitment to open dialogue and sector development.
The discussions focused on operational and financing challenges, particularly advancing responsible pricing frameworks that reflect current market conditions. Azzam emphasized that these frameworks must balance business sustainability and client protection, essential for strengthening confidence and sector expansion. He outlined the FRA's strategy to support non-banking financial growth, expand finance access while safeguarding credit quality, and leverage digital solutions for broader reach and financial inclusion.
FRA data indicate MSME financing balances reached approximately EGP 97.4bn in February, up from EGP 83.3bn a year earlier, benefiting around 3.6 million people in 2025. Participants reviewed proposals to enhance risk management, business models, and digital transformation, with Azzam highlighting human capital development and recommending a cooperation protocol between the FRA’s Financial Services Institute and the Egyptian Federation for MSME Finance.
The meeting addressed phased implementation of Basel III standards to bolster risk management and institutional readiness. Representatives' proposals will be studied under applicable laws to balance development and stability. Azzam reaffirmed direct dialogue's role in identifying challenges and shaping policies, pledging ongoing technical and regulatory support to position MSME financing as an economic growth driver.