FRA explores measures to boost market attractiveness with Private Equity Association

“Financial Regulatory Authority (FRA) Chairperson Islam Azzam held an extended meeting with members of the Egyptian Private Equity and Venture Capital Association (EPEA), bringing together business leaders, investment fund and investment bank representatives, as well as economic, legal, and accounting experts. The meeting was attended by FRA Vice Chairperson Mohamed El Sayad, alongside several senior officials and specialised departments at the authority, and was moderated by Ayman Soliman, Chairperson of EPEA. The discussions formed part of a broader series of meetings recently conducted by the FRA with market participants, including investors, insurance companies, private insurance funds, mortgage finance firms, micro, small and medium enterprise finance providers, leasing and factoring companies, and technical support professions. The initiative reflects the authority’s efforts to strengthen direct communication with stakeholders across non-banking financial markets and adopt a more institutionalised dialogue aimed at improving the business environment, enhancing competitiveness, and supporting economic growth. Azzam stressed that the FRA places significant importance on the private equity and venture capital sector, describing it as a key driver of economic development, corporate financing, and entrepreneurship. He said the authority continues to develop the legislative and regulatory framework in a way that balances market stability and investor protection with improving investment attractiveness and enhancing the competitiveness of the Egyptian market. He also underscored the importance of strengthening the role of the capital market as an effective financing platform for companies and a diversified exit channel for investors, noting that this would help attract additional domestic and foreign investment. According to Azzam, the FRA remains committed to aligning regulatory frameworks with international best practices to deepen market liquidity and efficiency. Azzam highlighted the strong performance of the Egyptian capital market during the first quarter of 2026, noting that total trading values exceeded EGP 6bn, representing growth of 41.2% compared with the same period in 2025. Trading activity continued to accelerate in April 2026, with the value of trading in listed and unlisted securities reaching approximately EGP 2.198trn, up from EGP 1.243trn in April 2025, an increase of around 76.9%. Market capitalisation reached nearly EGP 3.7trn by the end of April. The number of new investor registrations also rose sharply, increasing by 215% during the first quarter of 2026 compared with the same period last year. In April alone, around 64,000 new investors registered, compared with approximately 31,000 in April 2025, marking growth of 110%. Azzam further pointed to Egypt’s progress in digital transformation and the integration of technology into non-banking financial activities, urging investors to expand the use of fintech solutions across investment activities while benefiting from newly introduced legislative and regulatory frameworks in the insurance and financial sectors. He stressed the importance of introducing new investment mechanisms and instruments that support market diversification and respond to the needs of various economic sectors. Achieving this, he said, requires close cooperation between the FRA and market participants to raise awareness of non-banking financial markets and strengthen training and capacity-building efforts. The FRA chairperson also highlighted the increasing participation of younger investors, particularly in gold investment funds, noting that more than 80% of fund certificate holders are under the age of 40. He said this reflected strong demand for innovative investment products and reinforced the importance of fintech integration and financial literacy initiatives. Azzam reiterated the authority’s openness to proposals aimed at updating and developing legislative and regulatory frameworks in ways that enhance market depth and attractiveness, remove obstacles to investment activity, and support higher growth rates in private equity and venture capital. The meeting addressed several issues related to improving the investment climate, including the legal and regulatory framework from the perspective of service providers, legal advisers, and accountants, as well as the role of each stakeholder in improving market efficiency. Discussions also covered ways to balance the attractiveness of capital market listings with encouraging more companies to list and trade publicly, in addition to opportunities to stimulate the secondary market for debt instruments and broaden retail investor access. Participants examined implementation mechanisms, the role of market makers in enhancing fixed-income trading efficiency, and prospects for expanding securitisation activities and their impact on finance companies and related sectors. Members of the EPEA presented several legislative proposals and incentives aimed at increasing listings on the Egyptian Exchange and stimulating trading activity, thereby strengthening the market’s role as an effective exit platform for private equity investments. Discussions also explored the reasons behind the limited number of private equity exits through the stock market and ways to encourage more such transactions in the future, particularly following the successful listing of special purpose acquisition companies (SPACs) in Egypt in recent years. For his part, Soliman stressed the importance of continued dialogue and coordination with the FRA, praising the authority’s openness to discussing market challenges and listening to industry proposals and perspectives. Participants also commended the level of cooperation between the FRA and market stakeholders, as well as the authority’s responsiveness to complaints and its willingness to consider different proposals and viewpoints during the drafting of regulations and legislative frameworks. The post FRA explores measures to boost market attractiveness with Private Equity Association first appeared on Dailynewsegypt .

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