Egypt’s Financial Regulatory Authority (FRA) approved the establishment of eight new companies engaged in money market activities between January and July 2020, according to FRA Chairperson Mohamed Omran.
Omran added that of the eight companies: four focus on issuing securities to raise capital; one is in the fund management sector; one is in venture capital; one is in brokerage; and another has been set up as a holding company in securities portfolio establishment and management.
The FRA Chairperson added that in the first seven months of 2020, a total of 16 companies have obtained the required licences to engage in additional capital market activities. This includes six companies that gained the licence required to practice financial consulting on securities without carrying out the financial evaluation. Five companies were also licensed to participate in establishing companies that issue securities or increasing their capital, with one company granted the licence to trade in bonds.
Omran also said that another company received a Sukuk issuance licence, with one company licensed to manage funds in April, and another to run a securities portfolio. A holding company has been licensed to practice IPO promotion and coverage.
Moreover, two companies were licensed to engage in operations to receive subscriptions for fund securities, with further four companies receiving licences to practice activities in open-investment fund securities.
Although Egypt now boasts 39 insurance companies, the FRA has only approved property insurance activity licences to two of these companies, in accordance with the provisions of Law No 10 of 1981. This is in addition to the FRA’s granting licences to engage in insurance brokerage to three new companies.
With regard to financing activities, two companies were granted the licence to engage in financial leasing activity, in addition to six other companies that obtained a licence to practice factoring. A total of four companies have been licensed to conduct financing, with a further eight companies gaining approval to practice micro-financing at 114 new branches.