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5 clusters · 8 sources · 36 days · First seen · Last updated

Egypt FRA expands fund regulations and short selling

Overview

Egypt’s Financial Regulatory Authority (FRA) has introduced several measures to regulate and expand investment fund structures and capital market tools.

In early August, the FRA issued its first decision to regulate hedge funds, permitting them to invest in equities, debt instruments, and financial derivatives such as futures and options. The regulation also allows for short selling on the Egyptian Exchange. FRA Chairman Islam Azzam stated these moves are intended to “deepen the Egyptian market, enhance investment flexibility, and stimulate the derivatives market” by attracting local and foreign investors. To ensure transparency, the regulation mandates strict disclosure regarding leverage limits, risk management, liquidity risks, and periodic stress test results.

Following this, the FRA amended rules for real estate development companies transitioning into real estate investment funds. The updated requirements simplify net equity standards, requiring companies to maintain at least 500 million Egyptian pounds based on approved financial statements, excluding asset revaluation differences. The amendment also stipulates that recorded loans must not exceed the maximum borrowing ratio permitted under the Capital Market Law.

In August 2026, the FRA issued Decision No. 155 to formally govern short selling operations. This framework establishes a ‘Central Lending System’ managed by Misr for Central Clearing, Depository and Registry (MCDR), allowing short sellers to view available lending offers to ensure transparency in quantities, rates, and periods. FRA Chairman Islam Azzam noted the regulation seeks to “balance market encouragement with strict risk control and market stability.”

In September 2026, the FRA met with the European Bank for Reconstruction and Development (EBRD) to discuss boosting the non-banking sector. Discussions included the implementation of Basel III principles for risk management and the potential application of Solvency II standards for the insurance sector. The FRA is also prioritizing a ‘Market Maker’ mechanism to increase liquidity and stability.

Entities

Islam Azzam · Financial Regulatory Authority · Egyptian Exchange · Omar Radwan · Marc Bowman

Timeline

  1. 2 days ago

    [BUSINESS] 2 sources
    Financial Regulatory Authority and EBRD discuss boosting Egypt's non-banking sector

    Egypt's Financial Regulatory Authority and the EBRD discussed boosting the non-banking financial sector, introducing short selling frameworks, and implementing international risk management standards.

  2. 21 days ago

    [BUSINESS] 2 sources
    Egyptian Exchange to implement short selling within weeks

    The Egyptian Exchange and Financial Regulatory Authority are set to launch short selling mechanisms within weeks following technical upgrades and the establishment of a central lending system.

  3. 27 days ago

    [BUSINESS] 2 sources
    Financial Regulatory Authority launches short selling framework in Egypt

    Egypt's Financial Regulatory Authority has launched a new regulatory framework for short selling to boost market liquidity and efficiency through a centralized securities lending system.

  4. about 1 month ago

    [BUSINESS] 4 sources
    Financial Regulatory Authority amends real estate fund conversion rules

    Egypt's Financial Regulatory Authority has amended rules for real estate developers converting to investment funds, setting a minimum net equity requirement of 500 million Egyptian pounds.

  5. about 1 month ago

    [BUSINESS] 2 sources
    Egypt's Financial Regulatory Authority regulates hedge funds

    Egypt's Financial Regulatory Authority has introduced new regulations to establish and manage hedge funds, aiming to deepen the Egyptian Exchange and attract diverse local and foreign investors.

Sources

alahalygate.com · alborsaanews.com · alnaharegypt.com · bnokonline.com · elaosboa.com · elbalad.news · eldyar.net · lahzanews.com

This summary has been updated 3 times: see revision history