Cairo – February 23, 2025: The Financial Regulatory Authority (FRA) revealed that entities regulated by the FRA provided a total of LE 911.5 billion in financing in 2024, marking a 2% increase from LE 893.5 billion in 2023.
These figures were shared by FRA Chairperson Mohamed Farid during a press conference where he outlined the Authority's key activities for the past year.
Farid highlighted that stock issuances accounted for the largest portion of the total financing, contributing 52.6% of the overall figure.
Other significant contributors included financial leasing at 13 percent, financing for small, medium, and micro enterprises at 10.5 percent, and factored securities at 8.2 percent.
Consumer financing accounted for 6.7 percent, non-equity securities issuances represented 6.1 percent, and real estate financing made up 2.8 percent.
Senior FRA officials, including Vice Chairpersons Islam Azam and Mohamed El-Sayed, Assistant Chairpersons Mohamed Abdel Aziz and Mohamed Sabry, and Media Advisor Mohamed Ayad, attended the briefing.
One of the major moves from the FRA last year was the launch of Egypt and Africa’s first regulated voluntary carbon market in 2024.
By August, the market had registered 21 carbon reduction projects, spanning agriculture and emission reduction projects in Egypt, India, Nepal, and Bangladesh. A total of approximately 145,000 voluntary carbon certificates were issued in this period.
Farid also provided insights into the securities market, where the total value of securities issued—including stocks, bonds, and sukuk—dropped by 11 percent, falling from LE 601.7 billion in 2023 to LE 535.5 billion in 2024.
Despite this decline, the total trading value surged by an impressive 344.8 percent, reaching LE 14.3 trillion, largely attributed to the introduction of treasury bill trading in September 2023.
Outstanding financing for small, medium, and micro enterprises (SMEs) saw an impressive increase of 41 percent, reaching LE 80.5 billion in 2024. Although the number of beneficiaries decreased by 2.3 percent, totaling 3.7 million, the total financing granted to these enterprises grew by 31.9 percent, totaling LE 95.8 billion.
The insurance sector saw a strong performance in 2024. Total premiums increased by 34.1 percent, reaching LE 82.3 billion, up from LE 61.4 billion in 2023. Insurance companies paid out LE 36.7 billion in claims, which represented a 15 percent rise from the previous year.
Microinsurance premiums rose by 51.8 percent, reaching LE 586.1 million, while agricultural insurance premiums increased by 12.9 percent, totaling LE 132.4 million. Investments in private insurance funds grew by 19.7 percent, amounting to LE 160 billion, and governmental insurance fund investments saw a 49.4 percent increase, totaling LE 1.8945 billion.
Mortgage financing experienced significant growth in 2024, with contracts rising by 144.9 percent to LE 25.5 billion. Financial leasing contracts grew slightly by 1.2 percent, totaling LE 118.9 billion, while factored securities saw a substantial increase of 69.4 percent, reaching LE 74.6 billion. Consumer financing, introduced under Law No. 18 of 2020, recorded LE 61.3 billion in 2024, marking a 29.6 percent increase from LE 47.3 billion in 2023.
The FRA’s Movable Collateral Registry saw a 24.5 percent increase, with total registered movable asset declarations rising to LE 3.1 trillion, with approximately 202,000 declarations.
In a move to diversify investment opportunities, the FRA introduced three gold investment funds, which attracted 166,000 investors and accumulated a total investment of LE 1.3 billion by the end of 2024.
The FRA opened the credit rating sector to multiple players, allowing global entities to apply for licenses. Several top-tier consortiums have already submitted applications, with one selected and undergoing licensing procedures. The FRA also introduced new regulations for Special Purpose Acquisition Companies (SPACs), facilitating the creation and listing of SPACs, which are designed to attract venture capital-backed firms. The first SPAC under FRA regulations was established in 2024.
The FRA revised its listing and delisting regulations, streamlining procedures for capital increases, treasury stock transactions, and the listing of government and corporate debt securities. Notably, the new provisions allow for conditional listings for large, newly established companies and public-private share offerings. Additionally, new rules enable bond and sukuk listings without credit ratings, and listed companies can acquire unlisted entities under less stringent listing criteria.
Farid concluded the briefing by emphasizing the FRA's continued commitment to strengthening corporate governance. Throughout 2024, the FRA introduced several regulatory measures aimed at improving transparency, enhancing disclosure, and protecting investors, all of which are designed to ensure the long-term stability and growth of Egypt’s non-banking financial sector.
Be Social
Comments
Leave a Comment