Mohamed Farid, the new Chairman of the Egyptian Financial Regulatory Authority (FRA) said that the coming period will witness the development and implementation of a comprehensive business strategy that extends to all activities in the non-banking financial sector, starting with the capital market activity, through financial leasing, real estate financing, insurance and consumer financing, all the way to micro-finance and factoring, in coordination with various relevant parties.
This came during a meeting Madbouly held on Sunday with Mohamed Farid, following a presidential decree to assign him the new acting chairman of the Board of Directors of the Financial Regulatory Authority, to review the authority’s plans during the coming period, according to a press release.
PM Mostafa Madbouly said that the government attaches great importance to supporting all sectors that drive and support the growth of the Egyptian economy, at the heart of which is the non-bank financial sector, which comes among the government’s work priorities.
Farid explained that the coming period will witness work on developing registration rules to enable the largest number of serious companies to register and offer, following the formation of the Board of Directors of the Financial Regulatory Authority, as well as work on developing insurance products and speeding up their decision, especially ones related to real estate financing.
He pointed out that work will be done to develop the venture capital (VC) activity to support emerging companies in obtaining the necessary financing to develop their activities and increase the volume of their business, along with accelerating the establishment and activation of derivatives markets to enable dealers to hedge against the risks of price fluctuations.
VC is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.
The authority will also study the possibility of increasing the component of Inter-Arab investment through intensive cooperation between the Arab capital markets and the introduction of all the required amendments in this regard, with the completion of serious work on the development of institutional investment rates in the stock market.