Egypt: FRA approves 7 entities in non-banking finance

The Egyptian Financial Regulatory Authority (FRA) has granted seven entities approvals for incorporation, registration, and licensing in non-banking financial activities and capital markets, according to what Arab Finance agency reported from the Authority.

"Sympl" was registered to engage in receivables collection activities, while "Fawry" received preliminary approval to add factoring activities, provided it completes the required procedures with the General Authority for Investment and Free Zones (GAFI).

In the capital markets sector, "e-Finance" and "Olive" were licensed to participate in establishing securities issuing companies, while "Golden Way Securities" obtained a license for bond trading and brokerage.

"Business Community Financial Investments" was also licensed for portfolio and fund management. These approvals fall within the Authority's role in regulating non-banking financial activities and ensuring entities meet licensing requirements before starting operations.

What do these terms mean?

Non-banking finance: Financial activities provided by licensed non-bank companies, such as factoring, financial leasing, and microfinance.

Receivables collection: A service in which a company follows up on and collects amounts due to another company from clients for a fee.

Factoring: A company purchasing debts owed by another company's clients at a discount, then collecting them later.

Brokerage: A financial role acting as an intermediary between the buyer and seller of securities without taking ownership of the security itself.