Al MAl-
Dr. Islam Azzam, Chairman of the Financial Regulatory Authority (FRA), met with Jalil Tarif, Secretary-General of the Union of Arab Securities Authorities (UASA). The meeting, attended by FRA Vice Chairman Dr. Tarek Seif and other senior officials, focused on enhancing cooperation in awareness, training, and capacity building. This collaboration is facilitated through the Financial Services Institute—the FRA’s training arm—and the Regional Center for Sustainable Finance and Carbon Markets.
The two sides reviewed the positive outcomes of training programs conducted under the Memorandum of Understanding (MoU) between the Regional Center and the Union. These programs aim to exchange technical expertise, qualify personnel across Arab nations, and hone their skills in handling green financial instruments. They also focus on formulating policies and strategies regarding sustainable finance, carbon markets, and responsible investment; the programs executed by the Regional Center have garnered widespread acclaim from beneficiaries and specialists alike.
Discussions also addressed opportunities for continued cooperation through the launch of diverse new training programs. These initiatives aim to transfer Egyptian expertise to non-banking financial sector personnel in other Arab countries, covering areas such as non-banking fintech and financial derivatives. Furthermore, the collaboration extends to carbon markets—a field in which Egypt has made significant regulatory and supervisory strides—having established the governance framework for the voluntary carbon market and completed the steps for its activation as the first regulated and supervised market of its kind in Africa.
For his part... Dr. Islam Azzam highlighted the latest regulatory developments achieved by the Authority regarding capital markets and investment funds. He explained that "short selling"—the sale of borrowed securities—will officially launch within a few weeks, following the completion of the central lending system, full technical integration between Misr for Central Clearing (MCDR) and brokerage firms, and the training of market participants on using the system during a pilot phase.
The Authority’s Chairman outlined the key details of the new regulatory framework for short selling, issued under the Authority’s Board of Directors Decision No. 155 of 2026. This framework establishes rules ensuring transparency, robust governance, and the protection of all parties' rights in line with global best practices. He emphasized that the launch of short selling marks a significant milestone, capping a comprehensive effort to modernize the capital market instrument ecosystem. This follows the launch of the financial derivatives market last March, the introduction of futures contracts on select blue-chip stocks, and the regulation of hedge fund activities—including permitting the establishment of hedge funds for the first time—thereby enabling them to engage in short selling, invest in financial derivatives, and utilize other high-turnover instruments. Dr. Islam Azzam emphasized the importance of the current modernization drive aimed at broadening and deepening the market, enhancing pricing efficiency, increasing liquidity, and offering diverse investment alternatives to market participants with varying profiles and objectives. This comes amidst a steady rise in the number of newly registered investors—surpassing 171,000 by the end of the second quarter of this year—and trading volumes exceeding EGP 6.4 trillion during the same period, marking an increase of approximately 78.3% compared to the second quarter of the previous year.
The FRA Chairman also outlined several priority issues for the upcoming period, including the "Market Maker" mechanism. He highlighted its significance in stimulating trading and boosting liquidity, particularly following the recent tax package that exempts this mechanism from stamp duty. He noted that the Authority is considering additional incentives for market makers to spur institutional investment, coinciding with the listing and offering of several major state-owned companies on the stock exchange.
Meanwhile, Mr. Jalil Tarif, Secretary-General of the Union of Arab Securities Authorities (UASA), commended the Financial Regulatory Authority’s (FRA) ongoing efforts to foster the growth of non-banking financial activities in Egypt, while expanding awareness, training, and investor protection initiatives. He also praised the FRA’s role within the International Organization of Securities Commissions (IOSCO) and the UASA in strengthening cooperation and coordination regarding market oversight, combating market manipulation and fraud, and fighting money laundering and the financing of terrorism. The Union’s Secretary-General made a point of presenting and discussing recent legislative and regulatory developments concerning capital markets in Arab countries, as well as challenges associated with technological advancements, the expansion of non-banking fintech, online trading platforms, and cyber risks. He emphasized the importance of consultation, cooperation, and information sharing among Union members, alongside the implementation of diverse training and capacity-building programs designed to enhance market efficiency and transparency.
