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Startups are modern economy's core, FRA Chief tells RiseUp Summit

Businessmen Team news 09 November 2025 06:33 PM
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Startups are modern economy's core, FRA Chief tells RiseUp Summit

Dr. Mohamed Farid, Chairman of Egypt's Financial Regulatory Authority (FRA), unveiled a vision for a modern, innovation-led economy centered on startups, during his speech at the RiseUp Summit 2025.

Farid stressed the need to build an economy rooted in experimentation, creativity, and knowledge, outlining a strategy to create a more flexible and attractive business environment.

Farid asserted that entrepreneurship is the true nucleus of a modern economy, built by those who can turn ideas into large-scale projects. He emphasized that the FRA’s role has evolved beyond traditional oversight to include smart regulation that supports innovation without compromising stability. He argued that effective regulation is a source of strength, enhancing investor confidence.

The FRA Chief highlighted the success of a groundbreaking temporary Startup License for non-banking financial activities (NBFIs), such as real estate finance and factoring. This allows innovators to test business models in a regulated, secure environment without meeting full licensing requirements immediately. Several companies attracted new investments shortly after obtaining the license, demonstrating that smart regulation facilitates, rather than restricts, innovation.

Dr. Farid called for a cultural shift to accept experimentation and failure as a necessary part of the entrepreneurial journey, noting that successful companies often emerge from a high rate of initial failures. The vision also targets building strong medium-sized companies to serve as the backbone of the economy, connecting large and small enterprises in an integrated system.

He pointed to the FRA's efforts to regulate innovative fields, including Crowdfunding Platforms (especially in real estate) and new Valuation Tools.

He concluded by stressing that achieving this vision requires close cooperation between regulators, entrepreneurs, and investors. He affirmed that the combination of flexible regulation and the boldness to experiment will establish Egypt as a regional hub for entrepreneurship and innovative finance in the MENA region.

The RiseUp Summit 2025 was held in partnership with Misr Italia Properties at Cairo Business Park, focusing this year for the first time on PropTech (Real Estate Technology).