The Authority held a press conference at its headquarter in Smart Village to highlight FRA’s achievements in 2017and the changes witnessed by the non-banking financial services sector through the Authority’s effort to promote non-banking financial sectors in order to create an attractive investment environment that is transparent and fair. Besides FRA’s keenness to protect the rights of all parties operating in non-banking financial markets and striking a balance among them through its regulatory role.
The press conference presented FRA’s efforts over the past 12 months which witnessed a comprehensive review of all legislative and regulatory measures for the non-banking financial markets. Also, the conference introduced the steps taken to develop the legislations and regulatory decisions in the capital market, insurance, mortgage finance, private insurance funds, financial leasing, and microfinance.
The Authority’s management has set for- itself- a number of strategic orientations that have been followed to ensure the rational performance of the Financial Regulatory Authority (FRA). The most important of which is working to achieve a balance between supervising and regulating non- banking financial markets and protecting the clients on one hand and the developing these markets and increasing their attractiveness on the other hand. That is besides FRA’s keenness to simplify the procedures of dealing with the Authority and set timelines for finishing it. In addition, FRA has introduced new financial instruments (tools) for all sectors and non-banking financial activities in order to support various economic activities and encourage expansion and modernization processes.
The achievements of the recent Global Competitiveness Index of 2017 which was issued by the World Economic Forum in Davos represented tangible and positive results of FRA’s concrete and high performance.
Non-banking financial services activities witnessed a remarkable development. The capital market in Egypt achieved an unprecedented boom during this year, supported by a significant rise in the issuance market. The value of the issuances increased from 93 billion EGP in 2016 to 151 billion EGP in 2017, representing an increase by 62%. In the insurance sector, the growth rate in 2017 reached 32%, with premiums reaching 24 billion EGP compared to 18.2 billion EGP. Regarding mortgage finance, the amount of financing granted by mortgage companies reached 1.38 billion EGP during 2017 compared to 950 million EGP, representing an increase by 46%. With respect to financial leasing, the value of financial leasing contracts during the year 2017 amounted to 24.2 billion EGP compared to 19 billion EGP last year, representing an increase by 26%. As for factoring, the volume of factored securities this year was amounted to 7.8 billion EGP compared to 5.5 billion EGP last year with an increase of 41% over last year.
As a result of the Authority’s interest in promoting financial inclusion and its keenness to achieve sustainable growth rates, this has reflected significantly on microfinance activity as the number of beneficiaries reached more than 2 million citizens with total financing values that exceeded 6 billion EGP by the end of the third quarter of 2017.
By the end of the press conference Dr. Mohammed Omran- FRA’s current Chairman thanked and appreciated all FRA’s employees for their outstanding efforts. He also expressed his appreciation to the former Board of Directors for its executive policies all over the last four years and it must be thanked for expressing its views on all draft laws and decisions related to non-banking financial activities.
By the end of the conference, Dr. Omran stressed that since 2009 FRA was the only regulator for all non-banking financial activities. He added that it is an ongoing challenge to achieve the stability of the non-banking financial sector in Egypt which is one of the most important sectors of the economy and the most efficient sectors that can be a prominent supporter to the development movement and it attracts investments to Egypt.