-The Financial Regulatory Authority has officially sanctioned the establishment of Catalyst Partners Middle East, Egypt’s first venture capital firm specializing in acquisitions through a Special Purpose Acquisition Company (SPAC).

– Catalyst Partners Middle East will target acquisitions in the non-banking financial services and fintech sectors, aiming to support growth and innovation in these industries.

– The firm seeks to create opportunities for non-banking financial institutions and fintech startups to access the Egyptian Exchange, following recent regulatory amendments that facilitate SPAC operations in Egypt.

The Financial Regulatory Authority (FRA) has approved the creation of Egypt’s first venture capital firm focused on acquisitions,.

Mohamed Farid, Chairman of the FRA, has approved the establishment of Egypt’s first Special Purpose Acquisition Company (SPAC), named Catalyst Partners Middle East, with an issued and paid-up capital of approximately 10 million pounds, according to an official statement.

Catalyst Partners submitted the application in August to establish Egypt’s first Special Purpose Acquisition Company (SPAC). The venture capital firm will focus on acquiring businesses in the non-banking financial services and fintech sectors.

This development follows amendments made by the FRA earlier this year to listing and delisting regulations, allowing SPACs to operate in Egypt. FRA Decisions No. 140 and 148 of 2024 updated the rules for listing and trading SPAC shares on the Egyptian Exchange (EGX).

Catalyst Partners Middle East aims to provide a new financing avenue for non-banking financial institutions (NBFIs) and fintech companies through the EGX. The company plans to be the first SPAC listed on the exchange, offering NBFIs and fintech startups a pathway to enter the market.

SPACs are venture capital firms established to acquire other companies, raising capital through private placements on the market and required to complete acquisitions within two years of listing.