• Dr. Omran: Four licenses were granted to practice consumer finance activity and 114 approvals to open new branches of microfinance companies
Dr. Mohammed Omran – FRA’s Chairman emphasized that investment institutions trust the Egyptian economy, adding that three global credit rating agencies (Standard & Poor’s, Moody’s and Fitch) praised the performance of the Egyptian economy after a difficult period in the global economy in light of the Corona pandemic. He pointed out that during the first seven months of the current year; eight new companies were established to operate in accordance with the provisions of the Capital Market Law promulgated by Law No. 95 of 1992 and its amendments. In addition, four companies were established to participate in establishing companies issuing securities, another company was established to be engaged in funds’ activity namely, Misr Real Estate Investment Development Fund Company. Also, another company was established and licensed to practice venture capital activity. Besides, another company licensed to practice securities brokerage, in addition to one holding company licensed to practice portfolio management and formation, venture capital and funds’ management.
Dr. Mohammed Omran – FRA’s Chairman emphasized that during the first seven months of 2020, 16 existing companies obtained licenses to engage in additional activities in the capital market. That number included six companies licensed to practice financial advisory services without carrying out financial evaluation or preparing fair value studies, in addition to five companies licensed to engage in additional activity represented in participating in the establishment of companies that issue securities or increase their capital and one company to practice bonds’ brokerage.
FRA’s Chairman noted that one company had obtained a license to practice securitization activity last February and another one had obtained the license to practice the funds’ activity by the end of April 2020. That is besides another company that was licensed to practice portfolio formation and management activity. Also, a holding company was licensed to practice securities underwriting activities, portfolios management, funds’ management and venture capital.
In addition, two companies obtained a license from the Authority to engage in receiving subscription in funds’ certificates in accordance with the provisions of Law No. 95 of 1992 and FRA’s BOD decision No. 33 of 2018. On the other hand, four companies licensed to engage in receiving and implementing purchasing operations in accordance with FRA’s Chairman Decision No. 1619 of 2019.
Dr. Omran notes that the non-banking financial services sector is still attracting investments in all activities in addition to capital market activity. He adds that although the number of insurance companies operating in the Egyptian market has reached 39 insurance companies that engage in insurance activities (property and responsibilities and life insurance ), the Authority has licensed two new companies to be engaged in property insurance in accordance with the provisions of Law No. 10 of 1981. In addition, three new companies are licensed to engage in insurance brokerage activities, closing the door to grant new licenses in insurance brokerage firms through a decision by the Authority’s Board of Directors.
With regard to financing activities, two companies were granted a license to practice financial leasing activity in accordance with the provisions of Law No. 176 of 2018, in addition to six companies that obtained a license to practice factoring or add it to its activity. Moreover, four companies obtained a license from the Authority to practice consumer finance activity in accordance with the provisions of Law No. 18 of 2020 namely, Contact Consumer Finance Company in addition to other consumer finance service providers like Aman for Financial Services, Raya Electronics and Mansour Cars.
On the other hand, eight microfinance companies were granted approval to open 114 branches in various governorates of the Republic, including 42 branches of Tasheel Microfinance Company.