Also present at the session were Ghada Nour, Assistant
Minister of Investment and Foreign Trade, and Noha Khalil, Acting Executive
Director of the Sovereign Fund of Egypt.
During the meeting, Dr. Farid highlighted key investment
opportunities within Egypt's non-banking financial sectors, specifically
focusing on current opportunities in the insurance sector. He explained that
Egypt's insurance industry is undergoing a qualitative shift and rapid development,
reflecting a national drive to entrench financial inclusion concepts and expand
social protection for the most vulnerable groups.
These meetings are part of the FRA's commitment to enhancing
cooperation with major international financial institutions and exchanging
views on financial market developments and investment prospects. This
contributes to supporting efforts to develop Egypt's non-banking financial
sector and attract more foreign investment.
The FRA chairman noted that following the issuance of the
unified insurance law in July 2024, the FRA amended the rules, controls, and
investment ratios for private insurance funds and insurance companies. This,
for the first time, allowed for more diversified investment channels than
before, including investment fund certificates in metals or any metal-backed
certificates or financial instruments traded on Egyptian stock exchanges,
open-ended investment fund certificates in listed equities, as well as venture
capital fund certificates and direct equity funds within Egypt.
The FRA also mandated insurance companies to allocate at
least 2.5% of their paid-up capital to invest in open-ended investment fund
certificates that invest in listed equities. They also must allocate 5% of
their invested funds to investment in commodity and metal investment fund
certificates or any metal-backed certificates or financial instruments traded
on Egyptian stock exchanges. Additionally, a maximum of 10% of funds invested
by life insurance companies and a maximum of 5% of funds invested by property
and liability insurance companies must be directed to real estate investment
fund certificates.
Dr. Farid affirmed that these measures align with the
state's pursuit of comprehensive and sustainable economic, social, and
environmental development. Therefore, an ambitious vision has been set to
achieve a dignified and economically and socially secure life for all citizens,
with a focus on enhancing financial inclusion and integrating new segments of
society to drive economic growth.
He added that the FRA is working to balance insurance
protection requirements with economic developments, contributing to
strengthening the insurance sector's capabilities. He pointed out that since
the issuance of the unified insurance law, the FRA has continued its ongoing
efforts to enhance the sector's efficiency and effectiveness through issuing a
series of supportive legislations and regulatory procedures. Notably, new
controls have been issued to determine the minimum capital for insurance
companies, mandating companies to increase capital in two phases to reach 600
million EGP in the second phase, aiming to support companies' financial
solvency.
Furthermore, a regulatory framework has been established for calculating and forming technical provisions related to property and liability insurance to ensure proper and sustainable fulfillment of insurance obligations. The maximum insurance coverage in microinsurance activities has also been increased, expanding the scope of insurance protection for target groups.