Egypt’s financial regulator is opening up the country’s non-banking financial sector, granting 10 new licenses to a mix of established players and fintech startups. The approvals, which include digital investment platform Thndr and super-app Halan, signal a significant push by the Financial Regulatory Authority (FRA) to diversify financial services and increase competition across capital markets, insurance, and alternative financing.
Quick Facts
- 10 new licenses granted by Egypt’s FRA.
- Thndr approved for a real estate investment fund.
- Halan secures real estate finance and factoring licenses.
- Approvals introduce Egypt’s second-ever credit rating agency.
A Broader Financial Playground
The new licenses from the FRA, chaired by Dr. Islam Azzam, are set to stimulate activity in several key areas. The International Company for Credit Rating Solutions has been licensed to provide securities evaluation and rating services, becoming only the second operational credit rating agency in Egypt.
In the capital markets, Sigma Securities Brokerage and Aspire Securities and Bonds Brokerage received approvals for futures brokerage. This move brings the total number of firms licensed for derivatives trading on the Egyptian Exchange (EGX) to eight. The FRA is clearly focused on building out the infrastructure for more sophisticated financial instruments.
Fintech Giants Expand Their Reach
The inclusion of two of Egypt’s most prominent startups underscores the regulator’s support for tech-driven finance. Thndr for Real Estate Asset Investment was granted a license to operate a real estate investment fund, allowing the popular investment app to venture into a new asset class.
Meanwhile, Halan has broadened its already extensive financial suite by securing licenses for both real estate finance and factoring. This allows the company to deepen its lending capabilities and provide more comprehensive financial solutions to its vast user base.
New Entrants in Insurance and Real Estate
The insurance sector also saw key developments. MedRight Health Solutions obtained a temporary license for specialized medical insurance, the first of its kind under the new Unified Insurance Law. Additionally, NextCare received a temporary license to manage healthcare programs.
The real estate investment space is also heating up, with Co-Wealth Fund Company licensed to operate a real estate investment fund. The firm also gained approvals for securities promotion and fund management. Commercial International Finance Company (CIFC), a subsidiary of CIB, was also approved to practice financial leasing.
About Thndr
Thndr is an Egyptian commission-free, mobile-first investment platform that makes it easy for individuals to invest in stocks, mutual funds, and gold. The company aims to democratize access to financial markets for users across the MENA region.
About Halan
Halan (now MNT-Halan) is one of Egypt’s leading fintech companies and super apps. It provides a wide range of digital services, including ride-hailing, e-commerce, and a comprehensive suite of financial products such as digital payments, consumer loans, and business financing.
About the Financial Regulatory Authority (FRA)
The Financial Regulatory Authority is the primary government body responsible for regulating and supervising non-banking financial markets and instruments in Egypt. Its mandate covers capital markets, insurance, real estate finance, financial leasing, and factoring, among other areas.
Source: Waya
