- Dr. Omran: Regulator’s message has become specific through enhancing the capabilities of non-banking financial sector, providing and facilitating financing in order to create jobs opportunities for citizens
- Dr. Omran: The value of capital market issuances was 151 billion pounds in 2017
- Dr. Omran: The net investments by insurance companies was 86 billion pounds last year
FRA has issued its annual report 2017, including its vision to build a strong non-banking financial sector that achieves the sustainable development goals of the national economy and strengthens its position as one of the branches of the financial banking sector in line with the role of the Egyptian banking sector.
Dr. Mohammed Omran – FRA’s Chairman emphasized that the regulator’s message has became specific through enhancing the capabilities of the non-banking financial sector to create a competitive environment that supports the national economy and serves the interests of clients, institutions and markets. That is in addition to the regulator’s keenness to find an investment environment that attracts funds and encourage the flow of domestic and foreign investment.
In presenting the results of FRA’s achievements within the annual report 2017 , FRA’s Chairman asserted that he will not stop on what FRA has achieved in 2017 , adding that it achieved progress by 55 places in the capital market legislations in the latest competitive report, and jumped 33 places in the last performance report regarding protecting minority investors. He added that the Authority is facing a challenge and commitment in pushing and encouraging economic development. FRA’s Chairman emphasized that the Authority will not remain passive, as it will facilitate financing in order to create job opportunities for citizens and facilitate their welfare, as each 1% increase in market capital adds 20 basis points to GDP.
Dr. Omran added that the annual report is based on two main sections. The first presents the evolution in the performance of the non-banking financial markets starting with an overview of the Egyptian economic situation and highlighting the most important indicators of the performance of the non-banking financial markets during 2017. Also, he noted that the non-banking financial sector has witnessed significant activity in the past four years, as insurance premiums reached 24 billion EGP in the insurance sector and a growth rate of 23% compared to the previous year. He added that the total net investments of insurance companies was amounted to 86 billion EGP as of 30/6/2017 compared to 60 billion EGP in the previous year and a growth rate of 43%, whereas the capital market in Egypt achieved an unprecedented boom during the previous year supported by a significant rise in the issuance market as the value of issuances rose from 93 billion EGP in 2016 to 151 billion EGP in 2017 representing an increase of 62%.
The annual report also observed a remarkable development in mortgage finance activity, where financing granted by mortgage companies reached 1.38 billion pounds during 2017 compared to 950 million pounds in the previous year representing an increase rate of 46%.
With regard to financial leasing, the value of financial leasing contracts during 2017 was amounted to 24.2 billion pounds compared to 19 billion pounds last year at a rate of increase of 26%. Regarding factoring activity, the volume of factored securities this year was amounted to 7.8 billion pounds compared to 5.5 billion pounds last year with an increase rate of 41% over the previous year, this is in addition to the achievements in microfinance activity through expanding its beneficiaries to 2.2 million citizens.
Meanwhile, the second section presents the Authority’s efforts in developing legislations, regulation and controlling non-banking financial markets. Also, this section stresses on FRA’s steps towards enhancing integration within the non-banking financial sector. In addition, it focuses on the Authority’s keenness to achieve discipline and stability in non-banking financial markets and protect dealers in the market and facilitate financing. That is besides FRA’s growing interest in enhancing the financial inclusion and its efforts in finalizing the procedures of issuing a number of legislations within the framework of the State’s approach towards achieving sustainable development and contributing to the vision of Egypt 2030.