EGP 283.6bn in Total Financing Provided by Regulated Entities in Q1 2025: FRA
The Financial Regulatory Authority (FRA) of Egypt announced that entities under its supervision provided a total of EGP 283.6 billion in financing during the first quarter (Q1) of 2025. This total covers all regulated non-banking financial activities, including capital markets, insurance, leasing, and consumer finance.
Breakdown of the Financing Figures
- Equity issuances: EGP 2bn
- Issuances of securities other than shares: EGP 3bn
- Leasing contracts: EGP 1bn
Support for Micro, Small, and Medium Enterprises (MSMEs) was significant, with EGP 24.4bn in financing extended during the quarter—highlighting this sector’s vital role in driving economic growth and job creation.
Consumer finance reached EGP 17.5bn, directly supporting the purchasing power of Egyptian families. Factoring, which involves financing through the purchase of accounts receivable, stood at EGP 29.8bn, providing liquidity and working capital for businesses. Mortgage finance also maintained strength with EGP 11.2bn recorded.
A notable advancement was the increased use of movable assets as collateral for loans and credit, with assets registered in Egypt’s collateral registry reaching a value of EGP 3 trillion in Q1. Outstanding balances of MSME financing totaled EGP 6bn.
Insurance Sector and Savings Growth
The insurance sector collected a total of EGP 30.3bn in premiums during Q1 2025:
- Property and liability insurance: EGP 17.5bn
- Life and fund formation insurance: EGP 12.8bn
Insurers paid a total of EGP 13.7bn in compensation, including EGP 6.6bn for property and liability claims, and EGP 7.1bn for life and fund formation insurance.
Private insurance fund investments reached EGP 6.5bn, reflecting growth in long-term savings and retirement products.
Economic Diversification and Financial Inclusion
The FRA’s report highlights the ongoing development of Egypt’s non-banking financial services sector, an essential part of the country’s efforts toward economic diversification and financial inclusion.
Source: Daily News Egypt