• FRA grants licenses to five firms, covering real estate and mineral funds, IPO offerings, and factoring activities.
• Approvals include Telda, Bokra, EGY Trend, and True Finance Lease for expanded roles in Egypt’s non-banking finance sector.
• The Licensing Committee, formed by FRA in 2023, regulates non-bank financial firms’ operations, expansions, and activity additions.

FRA

Egypt’s Financial Regulatory Authority (FRA) issued decisions for 5 companies for activities ranging from establishing a real estate investment fund, mineral investment fund to granting licensing for IPO services and factoring activities.

What is factoring? Factoring is a financial service where a company sells its accounts receivable (invoices) to a third party (a factor) at a discount to receive immediate cash.

The Committee for the Establishment and Licensing of Companies (لجنة تأسيس وترخيص الشركات الخاضعة) under the supervision of the Financial Regulatory Authority granted these approvals. These approvals were granted to Bokra, Telda, EGY Trend Securities, and True Finance Lease.

The committee approved the establishment of the Bokra Real Estate Investment Fund and Bokra Mineral Investment Fund. It also licensed Telda to carry out IPO services for investment fund certificates.

Additionally, it licensed EGY Trend Securities to found companies that issue securities or participate in capital increases. It also approved licensing for factoring activities for True Finance Lease.

Committee’s Role

This committee was established under FRA Chairman Decision No. 3060 of 2023. It is responsible for approving the establishment and licensing of companies operating in non-banking financial services under the FRA’s supervision. Additionally, it handles requests to add activities and mechanisms for companies in the non-banking financial sector. 

It also approves the opening, relocation, or closure of branches for non-banking financial companies. It also processes requests related to liquidation and temporary or voluntary suspension of operations. In addition to the registration, renewal, or removal of company founders’ agents.