Egypt’s FRA to Link Non-Banking Sectors Via Electronic System

The Financial Regulatory Authority is planning to launch an integrated electronic system linking all non-banking financial sectors under its supervision, as part of broader efforts to modernise regulatory operations and expand digital oversight tools.

According to the authority, the platform will provide instant regulatory updates, real-time data access, AI-supported analytics, and a chatbot designed to handle institutional inquiries. The system will also streamline licensing and registration procedures across regulated activities.

The announcement followed a meeting between the authority, leasing and factoring unions, and representatives from more than 80 companies as part of ongoing consultations surrounding new legislative and regulatory frameworks.

Officials said the regulator is studying non-traditional solutions aimed at improving integration across capital markets, insurance, leasing, and factoring activities, alongside potential incentives linked to green economy financing.

The authority also released updated sector performance figures for 2025. Leasing contracts increased 21.7% year-on-year compared with 2024, while total contract values rose by approximately 51% to around EGP 180 billion.

Real estate activity, including leases tied to land and property units, accounted for roughly 80% of total leasing contract value during the year.

In factoring, receivables balances increased by around 57% compared with 2024, while the number of client companies rose approximately 30%. The total value of factored papers also climbed 77.3% to more than EGP 132 billion.

The authority additionally highlighted the rollout of a new electronic factoring system under Board Decision No. 51 of 2026, enabling invoice verification during its initial phase.