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Government Support to Strengthen Non-Banking Financial Activities

Dr. Moustafa Madbouly, Prime Minister, held a meeting at the government headquarters in the New Administrative Capital with Dr. Islam Azzam, Chairman of the Financial Regulatory Authority (FRA), to review the Authority's efforts in developing the capital market, insurance, and non-banking financing sectors. The Prime Minister emphasized the state's commitment to growing this vital sector to attract domestic and foreign investments, expand private sector participation, and provide safe investment avenues for citizens under strict regulatory supervision.

Protecting Investors' Rights and Enhancing Transparency

Madbouly stressed that protecting market participants' rights remains a top state priority, as reflected in the FRA's sequential regulatory decisions. For his part, the FRA Chairman presented the latest regulatory and supervisory developments aimed at improving service quality, expediting the resolution of investor grievances, and establishing early detection mechanisms to curb negative market practices.

Decisive Measures to Counter Fraud and Ensure Responsible Financing

The FRA Chairman highlighted several recent decisions designed to enhance transparency, mitigate financial risks, and combat money laundering, most notably:

Obligating financing entities to use One-Time Passwords (OTP) to verify customer identity and consent prior to fund disbursement.

Establishing real-time electronic integration with credit bureau companies.

Requiring consumer finance companies to rely on behavioral analytics for customer evaluation and to upgrade their IT infrastructure in preparation for direct database linking with the FRA.

Capital Market Development and the Rollout of Modern Trading Mechanisms

The Chairman concluded by outlining ongoing preparations to launch Short Selling, which complements Margin Trading, the launch of the financial derivatives market, and the recent regulation of hedge funds. These steps aim to boost trading activity, improve price discovery, and attract new demographics—particularly foreign and youth investors—under high standards of governance and transparency.